Connect with us

Bit Coin

3 reasons why Tezos (XTZ) price has gained 85% this month



3 reasons why Tezos (XTZ) price has gained 85% this month

The Ethereum (ETH) network is currently the dominant layer-one protocol in terms of smart contract deployment and active users, but the race to become the ‘world’s computer’ is far from settled because competing protocols are gaining traction by offering solutions to high transaction costs and slow confirmation times, the biggest problems facing the network.

One project that has been on the rise over the past month is Tezos, a proof-of-stake blockchain network that is designed to evolve over time without the needing to undergo a hard fork.

Data from Cointelegraph Markets Pro and TradingView shows that since hitting a low of $2.09 on July 20, the price of XTZ has rallied 165% to a high of $5.53 on Aug. 27 as its 24-hour trading volume surged abov $1 billion.

XTZ/USDT 4-hour chart. Source: TradingView

Three reasons for the strong growth seen in XTZ over the past month include improvements made to the network through the recent ‘Granada’ upgrade, the adoption of the Tezos network by several large banking institutions and attractive staking rewards that entice token holders to stake their coins on the network.

Protocol upgrade reduces transaction costs

As mentioned earlier, the Tezos network is a self-amending blockchain that is capable of being upgraded over time without the need to undergo a hard fork.

Altogether, the Tezos network has undergone seven successful upgrades since launching and and three of them occurred in 2021. The most recent ‘Granada’ upgrade was implemented on Aug. 6.

Tezos 7th Upgrade ‘Granada’ Is Now Live!

Emmy* consensus, cutting block times by 50%

Gas improvements, massively reducing gas consumption in smart contracts

✅Liquidity baking, leveraging governance mechanism and incentives to provide for public goods#Tezos #Granada pic.twitter.com/IL4zJBe9oU

— Tezos (@tezos) August 6, 2021

According to the team at Tezos, some of the improvements from this recent upgrade include a reduction in the block time from 60 seconds to 30 seconds and a reduction in gas consumption by smart contracts by an average factor of 3 to 6 times.

The new upgrade also introduced liquidity baking which “incentivizes large amounts of decentralized liquidity provision between XTZ and tzBTC by minting a small amount of XTZ every block and depositing it inside of a constant product market-making smart-contract.”

Real-world adoption driven by large banks

A second development that helped provide a boost in the price and awareness was Tezos’s adoption by digital asset firm Crypto Finance AG and Swiss business-to-business transaction bank InCore. Both plan to launch a new tokenization tool on the network.

Thank you #InCoreBank and @inacta for another successful collaboration project! The innovative and compliant standard for asset #tokenisation of financial products (FA2) we have enabled together on @tezos is definitely shaping the #blockchain industry.https://t.co/vEENshU4Kh

— Crypto Finance (@CryptoFinanceAG) August 24, 2021

The two companies also developed a new Tezos token standard for asset tokenization dubbed the DAR-1 token standard, which will enable the unlocking of new smart contracts-enabled functions that support financial markets, including Anti-Money Laundering (AML) capabilities and asset governance.

InCore has also revealed that it will launch institutional-grade storage, staking and trading services for XTZ, allowing financial institutions the ability to offer staking services for their clients’ assets.

Related: Powers On… Broker disintermediation and unregulated crypto exchanges cause major concerns

Attractive staking rewards reduce the circulating supply

XTZ also appears to be benefiting from attractive staking opportunities that have resulted in a majority of tokens being removed from circulation to help perform consensus in return for staking rewards.

According to data from StakingRewards, the current annualized rate for token holders who delegate their XTZ is 7.85%, while those who are more tech-savvy can start their own Tezos bakery and earn 8.73%.

The process of delegating XTZ is simple for the average user and can be done from any of the wallet interfaces suggested by the project, and multiple exchanges also offer staking services for a small fee including Coinbase, Kraken and Binance.

Tezos supply statistics. Source: TZStats

At the time of writing, data from TZStats indicates that 77.65% of the total supply of XTZ is being actively staked on the network which significantly limits the number of tokens available on the market and is a potential source of positive price pressure.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Go to Source

Bit Coin

Bitcoin Miners Seek Out Nuclear Power as ESG Pressure Mounts



Bitcoin Miners Seek Out Nuclear Power as ESG Pressure Mounts

Amidst concerns of environmental sustainability, Bitcoin miners are symbiotically partnering with nuclear power plants.

One such partnership is a joint venture between Talen Energy Corp. and bitcoin-mining company TeraWulf Inc. The miner started development on a facility the size of four football fields next to a Pennsylvania nuclear plant operated by Talen. 

“We are building demand adjacent to the existing nuclear plant,” said Talen Energy President Alex Hernandez. He heads the subsidiary jointly developing the mining project at the Susquehanna Steam Electric Station. Additionally, nuclear generator Energy Harbor Corp. said it would start providing power to an Ohio Standard Power mining center in December.

Even new nuclear projects have been instigated, with Startup Oklo Inc. signing a 20-year supply deal with Compass Mining. Oklo plans to build a small-scale fission power plant that will run on used nuclear fuel. Oklo co-founder and CEO Jacob DeWitte said he has also received inquiries from other bitcoin miners interested in the company’s project.

Miami Mayor Francis Suarez has also been touting the city as a hotspot for crypto mining, due to its cheap nuclear energy from a nearby power plant. The Turkey Point Nuclear Plant, which helps power the city, is located less than an hour away from Miami City Hall. According to the Bureau of Labor Statistics, an average kilowatt per hour of electricity costs $0.10 in Miami, versus the national average of $0.13. Meanwhile, Suarez is in talks with Florida Power & Light Company to drive the price down further.

Mutual benefit

The partnerships are proving mutually beneficial, as each is able to complement the other’s needs. Nuclear power plants provide stable, sustainable power for energy-intensive miners, while they in turn are helping to sustain these plants.

Because mining bitcoin is an energy-intensive process, the spread of mining operations has fueled criticism of it exacerbating climate change. Earlier this year, Tesla CEO Elon Musk suspended payments in Bitcoin over the environmental impact of mining operations.

Meanwhile, nuclear plants provide a steady source of emissions-free power, but many struggle to sell their output in wholesale power markets. Between wind, solar power and natural-gas generation, which has bottomed-out since the fracking boom, competition has become stiff.

“Both industry’s challenges are the other industry’s positives,” said Sean Lawrie, partner at consulting firm ScottMadden Inc.

What do you think about this subject? Write to us and tell us!


All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

Go to Source

Continue Reading

Bit Coin

Second-largest Ethereum mining pool to suspend all operations



Second-largest Ethereum mining pool to suspend all operations

Launched in China in 2018, SparkPool controls over 22% of Ether’s hash rate as of Monday, second only to Ethermine.

27386 Total views

85 Total shares

Second-largest Ethereum mining pool to suspend all operations

Sparkpool, the second-largest Ethereum mining pool in the world, is suspending operations due to the ongoing Chinese crackdown on crypto.

The mining pool officially announced that it has suspended access to new users in mainland China on Monday in response to Chinese authorities initiating new measures to combat crypto adoption in the country.

Following the initial restrictions made last Friday, Sparkpool will continue shutting down services, and plans to suspend existing mining pool users both in China and abroad on Thursday.

According to the announcement, the measures intend to ensure safety of users’ assets in response to “regulatory policy requirements.” “Further details about the shutdown will be sent out through announcements, emails, and in-site messages,” Sparkpool noted.

Launched in China in early 2018, SparkPool has emerged as one of the world’s largest mining pools for mining Ether (ETH), alongside the world’s largest Ethereum mining pool Ethermine. At the time of writing, SparkPool’s mining power makes up 22% of Ethereum’s global hash rate, slightly lower than Ethermine’s share of 24%, according to Poolwatch.io.

The news comes amid the Chinese government reinforcing its negative stance on crypto by declaring all crypto-related transactions illegal in the country last Friday. Some of the biggest cryptocurrency exchanges like Binance and Huobi have subsequently suspended new account registrations from mainland China, albeit reportedly still servicing users in Hong Kong.

Related: Ethereum drops more than Bitcoin as China escalates crypto ban, ETH/BTC at 3-week low

SparkPool did not immediately respond to Cointelegraph’s request for comment.

SparkPool’s shutdown comes as Ethereum continues its switch from a proof-of-work consensus mechanism to a proof-of-stake model in 2022 — part of the long-planned upgrade known as Ethereum 2.0. As previously reported by Cointelegraph, Ether miners will not have many choices after Ethereum 2.0 finally arrives, as their mining equipment is set to become obsolete.

Go to Source

Continue Reading

Bit Coin

JPMorgan CEO says Bitcoin price could rise 10x but still won’t buy it



JPMorgan CEO says Bitcoin price could rise 10x but still won’t buy it

Banking mogul Jamie Dimon has been a notorious detractor of Bitcoin since 2017, in contrast to his firm’s overt desire to capitalize from the ecosystem’s growth.

11994 Total views

84 Total shares

 JPMorgan CEO says Bitcoin price could rise 10x but still won’t buy it

In an online interview with Times of India, Jamie Dimon, CEO of investment banking behemoth JPMorgan Chase, slandered Bitcoin’s popular appeal, despite stating that the leading digital asset could increase 10x in a matter of five years. 

A historically staunch critic of Bitcoin (BTC), Dimon called it a fraud back in 2017 and cited the reported capability for criminals to evade capture from authorities by operating their financial transactions in BTC rather than U.S. dollars.

When Times of India asked the CEO whether Bitcoin or other cryptocurrency assets should be banned or regulated, Dimon responded:

“I don’t really care about Bitcoin. I think people waste too much time and breath on it. But it is going to be regulated. […] And that will constrain it to some extent. But whether it eliminates it, I have no idea and I don’t personally care. I am not a buyer of Bitcoin. That does not mean it can’t go 10 times in price in the next five years.”

Despite this, JPMorgan has over the past year expressed a growing interest in the development and implementation of crypto and blockchain initiatives.

In January, the firm purchased a 10% stake in ultra-bullish business intelligence firm MicroStrategy, whose CEO, Michael Saylor, is one of Bitcoin’s most renowned investors and holders.

In July, the firm created multiple worldwide job postings for blockchain developers, engineers and marketers to work for its crypto-centric Onyx division — responsible for launching the bank’s stablecoin asset, JPM Coin, in Octo 2020.

According to a recent report, JPMorgan subsidiary Counterpoint Global is considering offering cryptocurrency investments to wealthy clientele. With assets under management topping $150 billion, this would represent a sizable stamp of approval for the rest of the banking industry. 

Related: JPMorgan will reportedly give retail wealth clients access to crypto funds

Dimon has received notable criticism for his dismissive views on digital assets, and no more so than from Wall Street veteran Max Keiser in an interview with Cointelegraph in late 2020. Keiser shared a biological analogy to express his discontent with the banking magnate:

“Bitcoin came into existence as a spontaneous life form that grew out of our global, collective consciousness as a defense mechanism to fight predatory central banks. Jamie Dimon is a parasite, like a tapeworm, and our species had no defense. So with God’s help, we collectively willed Bitcoin into existence to fight fiat money, fractional reserve banking and Keynesian debt-money propaganda.”

Go to Source

Continue Reading
Home | Latest News | Cryptocurrency | Bit Coin | 3 reasons why Tezos (XTZ) price has gained 85% this month