Weiss Cryptocurrency Ratings Says Tezos (XTZ) Is On Fire After Gaining Over 190% In The Last 5 Weeks

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Tezos (XTZ) Sees Mild Price Increase After Binance Staking Support Announcement
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The price of Tezos has been on a tear this year with the crypto-asset gaining more than 190% over the last five weeks. These gains have seen XTZ become the tenth-largest cryptocurrency by market cap. The cryptocurrency is now trading at $3.46. That’s a growth of over 8.06% on a 24-hour adjusted timeframe.

The positive trend has not gone unnoticed with Weiss Ratings giving three reasons as to why the coin has been on fire.

XTZ Bulls In The Driver’s Seat

Over the past few weeks, Tezos has continued to move with strong bullish momentum. Specifically, XTZ is up 60.3 percent in the last seven days alone. Weiss Ratings took to Twitter to commend Tezos (XTZ) for its impressive performance so far. The market research firm noted that XTZ had gained more than 190% in the space of five weeks. Weiss also noted that XTZ has hugely outperformed other assets including the OG crypto, bitcoin.

The firm went ahead to provide a link to a piece that details three fundamental factors behind this incredible performance.

First, Weiss posited that Tezos has a flexible governance model. As such, any XTZ holder can propose an upgrade for the network and if other XTZ holders support it, it will be implemented. In other words, Tezos’ democratic and flexible governance model eliminates the possibility of a fork emanating from civil wars, like in the case of Bitcoin Cash splitting from bitcoin.

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Secondly, Tezos holders receive annual dividends for validating transactions. Tezos uses a Proof-of-Stake (PoS) consensus algorithm whereby holders can validate transactions on the network with their XTZ tokens. These users are allowed to either directly validate the transactions themselves or delegate their XTZ tokens to someone else who will validate transactions and share the associated rewards. This technique has gained traction in the crypto industry with companies like Coinbase paying holders as much as 5% annual dividends for XTZ tokens delegated to the exchange.

Finally, Weiss noted that Tezos is highly decentralized. In particular, Tezos has 80% of the tokens actively participating in the validation of the network. Moreover, there is an even distribution of bakers on the network, with the largest baker controlling only 6.57% of total Tezos in circulation.

But despite the massive gains, Tezos was rated a B- owing to weaknesses like its slow processing speed.

Moving Forward

Tezos is trotting higher. As such, the sentiment around XTZ is mostly bullish. Binance Futures announced that it has launched a 50% rebate on trading fees for the XTZ/USDT perpetual contract. According to the official announcement, this offer will run for a week starting from Feb 14, 12 PM (UTC) to Feb 21, 12 PM (UTC).

As Binance Futures offers a rebate, more XTZ holders will try to hold it longer. This might eliminate a good number of sellers from the XTZ market, allowing the crypto-asset to continue its bullish trend.


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The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.