The Tezos (XTZ) rally may end up putting the coin among the top 10 based on market capitalization. XTZ is closing in on Stellar (XLM), possibly achieving a “flippening”.
Tezos Project Gains Popularity
The XTZ market price awakened in the past weeks, boosting the expectations for future appreciation. XTZ is getting wider adoption after the initial skepticism, and has improved on almost all ICO earnings statistics.
$XTZ set to replace $XLM in the top 10 soon, resulting in index based funds to sell their XLM and buy XTZ.
Wonder if @Delphi_Digital spotted that in Tezos' tokenomics…
— Matt Kaye
(@MattDavidKaye) December 11, 2019
XTZ traded at as high as $1.54 after solidifying 20% in weekly gains. The recent price slide across the market may cut the rally short, but so far, XTZ is one of the biggest gainers. The potential for the appreciation to offset the slide in Bitcoin (BTC) and other assets may make XTZ attractive.
The “flippening” also suggests XLM may be going out of fashion, as its price slid despite efforts to curb the supply of coins. Tezos, on the other hand, is gaining trader interest and coming into the spotlight, despite its slow start and delayed launch.
Kraken Moves In with Staking Service
The growing demand for Tezos staking may also be boosted by exchanges moving in to offer custodial services with passive income. This combines the chance to trade XTZ with the potential to also earn staking rewards if the coins are inactive. XTZ staking rewards vary based on coins locked in.
However, staked coins will be temporarily unavailable for trading or withdrawals. Receiving the rewards may be achieved by putting XTZ in the special “Staking Wallet” created by Kraken.
Kraken was the most recent exchange to offer custodial staking. This allows traders to “bake” Tezos without the need to run an open wallet and choose a “baker”.
Earn a 6% return staking XTZ, available on Kraken Friday, Dec 13! Details here:https://t.co/UTaEfd9NIk
— Kraken Exchange (@krakenfx) December 11, 2019
The current staking reward for Tezos is 6.6% currently, which lines up the coin among the best earners of passive income. The recent upward price rally makes staking even more appealing, as “hodling” also leads to potential gains after selling the asset.
But Tezos knowledge may be spreading beyond the crypto community, as search engine results show renewed interest in the coin.
Is this good? #xtz #tezos pic.twitter.com/gEc1OTuj6x
— tezos atlanta (@tezosatl) December 11, 2019
Tezos has also entered the mainstream investment space, through the Amun issuer of exchange-traded products. The XTZ-based fund will also soon be offered to traders across the EU. The fund is unique for holding physical XTZ, and also distributing the staking rewards. The Tezos network will produce 42 million new XTZ this year, which will be distributed based on the number of stakers and their weight.
What do you think about the XTZ price rally? Share your thoughts in the comments section below!
Images via Shutterstock, Twitter @Tezosatl @Krakenfx @MattDavidKaye