Is the Increase in the Number of Tezos Transactions Related to the Growth in Demand for NFTs?
Tezos is a platform that resembles Ethereum somehow. Strictly, it is a blockchain network that supports smart contracts. However, Tezos aims at offering more advanced infrastructure. In this way, the network will evolve and incorporate improvements without hard forks that would divide its community.
A developer who has an idea to upgrade the Tezos protocol can submit their proposal to the community. If the upgrade is approved, the developer gets payment in Tezzies (XTZ) tokens. XTZ holders have the right to vote on the upgrade proposal submitted by developers. In this way, Tezos encourages developers to take an active role in developing the network. This approach results in the decentralization of network maintenance and development.
Tezos has had significant success since its launch on July 1, 2018. Although this token performed badly for several years, investors received good returns in 2021. This token got its all-time high price on October 4, 2021, at $9.18. If you want to partake of the good performance of this digital asset, you can buy XTZ tokens from a reliable Tezos exchange.
A Tremendous Growth in the Number of Tezos Transactions
The impressive appreciation of the XTZ token in 2021 resulted from the tremendous growth of the Tezos network. There were more transactions and smart contracts on the network than in the previous year. The number of transactions increased fivefold. In January 2021, there were 10,000 transactions on the network daily. After a year, this number had soared to 50,000 transactions per day.
Besides the number of transactions, the number of active wallets on the Trezor network has increased dramatically. It is estimated that more than 45,000 wallet addresses hold XTZ tokens. Likewise, the number of active smart contract addresses has tripled, going from 200,000 at the beginning of 2021 to more than 600,000 a year later.
Interestingly, experts have noted that non-fungible token (NFT) platforms were a major driver of the growth described above. For example, Ubisoft announced its Tezos support for gaming-related NFTs in December 2021. Another platform contributing to the surge of activity on the Tezos network is the generative art platform FX Hash.
Ethereum, Another Driver of Growth
Besides the greater demand for NFTs, other factors contribute to the sudden growth of the Tezos ecosystem. Another major driver is Ethereum, which currently has very high network fees. As a result, NFT creators and buyers have looked for alternatives to the expensive Ethereum ecosystem. Tezos has been the choice of many. This phenomenon has also led to increased activity on the cryptocurrency exchange online – Letsexchange, with many users seeking to purchase XTZ tokens.
The Demand for NFTs Will Continue Increasing in the Next Few Years
Non-fungible tokens are in vogue in different sectors. Many businesses have embraced this type of digital asset for various reasons. Celebrities and artists have also found NFTs useful for particular purposes. Non-fungible tokens can be used for artistic expression, to create awareness, to general non-profit funds, and more. The core of an NFT is a smart contract.
According to most projections, the demand for NFTs will increase in the next few years. It means that the demand for smart contracts will soar too. Hence, the Tezos platform will continue its impressive growth in the coming years. The XTZ token can be an excellent long-term investment. Because of its low network fees, Tezos is a serious competitor to the Ethereum platform.
