Is the NFTs market bringing Tezos back into relevancy?

Lavina Daryanani
Source: Tezos

Tezos has been in the news over the past week for three specific reasons. One, its network activity massively improved and the numbers started doing the rounds. Two, the token gained a fair amount of traction yesterday owing to the court ruling in the staking case filed by a Nashville couple. Three, its $20m-per-year training kit sponsorship with English football club Manchester United, additionally, managed to stir in excitement amongst community members.

In this particular article, we will focus on the first fundamental factor alone and highlight how it has shaped up Tezos’s long-term prospects.

The numbers have started ripening

The network activity on Tezos has drastically notched up over the past few weeks. Only in the month of January, over 6 million contracts calls were observed. Taking Twitter to announce the same, Tezos’s official tweet noted,

New Monthly All-Time High for @Tezos!

Over 6,000,000 contract calls this month — Every day, more and more people are utilizing Tezos.

The daily transactions started their upward trajectory in August last year as Tezos launched its seventh upgrade, Granada, to cut down the average block time in half.

Tezos’s growth this time around has typically been driven by non-fungible tokens. The chart below shows the daily number of transactions on Tezos broken down into transactions involving smart contracts (in red) and all other transactions (in green).

In fact, as per Tezos’s own tracker, the current daily transaction figure is revolving around 300k, less than a quarter of the daily transactions on Ethereum, which is currently 1.1 million according to data from Etherscan.

CoinMetrics’s State of the Network report highlighted that platforms like the generative art platform FX Hash and gaming giant Ubisoft had roles to play in the network’s growth.

Additionally, on the same chart attached below, it can be noted that the number of addresses holding at least 1 XTZ continues to incline. In fact, the same recently surpassed 300K, rising from 120K at this time last year.

Source: CoinMetrics

Active addresses on the network have ticked up as well. Highlighting the same in the report, the crypto market data providing platform asserted,

… the number of active smart contract addresses has been steadily increasing, likely as a result of new NFT contracts launching.

Source: CoinMetrics

All the said factors highlight the network’s qualitative progress. If the same continues then a positive impact would be rubbed off on its native token’s long-term valuation.

For its part, XTZ has already inched up from $2.8 to nearly $4 over the past week.