Should you buy Tezos (XTZ)? Banking on social impact

Tezos (XTZ) has extended its correction from the recent highs. Here are the important support and resistance levels

Tezos XTZ/USD takes advantage of what is known as liquid proof-of-stake (LPoS), and this is important to know when evaluating the value of its cryptocurrency. You see, LPoS is an algorithm that is used by the computers running the Tezos software and is used to secure the network, validate the transactions and distribute newly minted XTZ. 

How XTZ Plays a Role on Tezos

In order for the nodes to participate in the governance, however, they need to stake XTZ in a process known as baking. If you want to be a baker, as a node you’ll need 8,000 XTZ. Users can delegate their tokens to the other bakers and allocate votes to other users so they can earn XTZ rewards. Bakers are incentivized to perform well due to the fact that all users have the flexibility to switch between bakers that they delegate XTZ to, depending on the voting preferences of course.

The XTZ cryptocurrency has a major role when it comes to maintaining the operation of the Tezos network and can be used for holding, spending, sending, or even baking.

Through owning XTZ, as a user, you can get the ability to vote on the upgrades, where each vote is proportional to the amount of XTZ baked. 

So, you now have a general idea of the real value of XTZ and why it’s important, but what does this mean for its price and value in the long term? 

Throughout the entirety of May, new builders, creators, and users contributed to 1.5 million contract calls on Tezos.  

Should you buy XTZ?

In June 9, Tezos had over 283,000 transactions in the span of 24 hours which equates to 23% of ETH’s daily transactions for that specific time frame. The value of XTZ at this time was $3.41.

On June 10, Tezos won an award for the best social impact project of 2021 at the AIBC summit in Dubai. 

We can see that the value remains across the $3 mark, but due to its popularity, recent awards and community engagement it has the potential to yet again rise up to the $5 mark or even beyond by the end of June.

On June 14, XTZ continued to trade just above the $3 level. At $3, it might be worth investing in, and we might even see it go back up to the value of $7 that it had on May 7, when Graph Blockchain Inc. announced that they began proof-of-stake mining of Tezos’s native token XTZ. 

The more popular Tezos becomes, the higher the value it will have, and at $3, with the expectancy of it going back up to $7, it might be a good investment. However, $3 serves as a key support level so if the coin drops below, it might serve as a sign to avoid buying as buyers no longer have interest of buying.

The post Should you buy Tezos (XTZ)? Banking on social impact appeared first on Invezz.

Publication date: 
06/14/2021 - 15:52
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The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.