The Tezos (XTZ) has experienced an exceptional rise in price and demand, helped along with its “modernized” design in smart contracts, DApps, and its staking feature. It’s already smashed into the top 10 coin rankings by market capitalization and is currently one of the few altcoins with a $1 billion-plus market cap.
The New Player In The Field
It’s come to the point that Tezos is threatening to overtake Bitcoin SV, which currently has a market cap of about $1.8 billion. The sheer amount of positive sentiment for XTZ has to lead to the potential of a whole new price range, with the price already having tripled in 2019.
The XTZ token managed to push up 14% overnight, and over 36% when compared week-over-week. The trading volumes enjoyed a stark rise as well, clocking in over $126 million every day. The market’s newfound appetite for XTZ is only predicted to reach new highs in 2020.
A Possibility of Future Consolidations
Weiss Ratings, trading analysis and rating firm, saw its crypto branch speculate that consolidations between a range of smart contract platforms may occur. Weiss attributes this event to new leaders appearing within the market and speculates that ChainLink (LINK) and Tezos will partner up in the near future.
Platforms like #Ethereum (#ETH), #Cardano (#ADA) and #Tezos (#XTZ) will probably also need #Chainlink. They run lots of smart contracts & aim to replace a host of centralized services in the world today. That’s not going to be possible without reliable and secure real-world data.
— Weiss Crypto Ratings (@WeissCrypto) December 12, 2019
General fans of altcoins are enjoying XTZ, with the coin representing a new opportunity for profit in its extraordinary growth. While the asset itself is still considered risky, it shows great promise in terms of short-term gains when compared to other, more established coins.
Dumped all of my #XRP and bought #XTZ yesterday. I was tired of all the drama and no real movement since like a year? Today I woke up with Tezos at like 7% growth and entrance at top-10 market volume, and then bought some more. Huge potential right up there.
— MBS (@EmBeEsss) December 12, 2019
Great Growth Risks Great Loss
XTZ’s massive growth increases the risk of loss should the coin experience yet another large backtrack from holders dumping their coins for a profit. Thus, a strange dynamic might happen that those that held XTZ since its ICO at the start of this year, runs the risk of making the market go into a slippage should they sell too much.
Others believe the asset will go through a boom-and-bust cycle instead of an ongoing climb. Either way, the XTZ coin is gaining far more exposure due to its booming success, and the prices may shift simply because of that, and that alone. Many envision a larger valuation for Tezos, but the coin itself has yet to recover from its highs of $4-$5 that happened in the past.
With the new influx of trading, the XTZ markets have come to enjoy a larger amount of liquidity inflows due to trading with Tether (USDT) and Bitcoin (BTC) start to pick up. The door seems open for Tezos with BTC seemingly stalling with relative stability and other altcoins trying to pick their various price ranges.