The Tezos price did relatively well on Wednesday as investors reacted to several important catalysts. The XTZ coin is trading at $5.45, which is about 65% above the lowest level during the weekend. This rebound has brought its total market capitalization to more than $4.75 billion. It is the 39th biggest cryptocurrency in the world.
Why is XTZ soaring?
Tezos is a smart contract platform that enables developers to build decentralized applications. Today, Tezos has been used to build a variety of applications. According to DappRadar, some of the top applications built using Tezos are Plenty, Hic et Nunc, and Tezos Domains among others.
Tezos apps are across the decentralized industry. For example, it has been used to build Non-Fungible Token (NFT) marketplaces, games, and DeFi platforms. Tezos is a leading sponsor of Red Bull’s Formula 1 team.
There are three main reasons why the Tezos price has rebounded today. First, according to PriceWaterhouseCoopers (PwC), the platform has dramatically reduced its carbon footprint in the past few months. This decline happened even as the number of transactions in the network rose.
According to the report, the annual energy consumption of the network is about 0.001 Terawatt hours. This is substantially lower than that of other platforms like Ethereum and Bitcoin. This report is important considering that many developers and investors are shifting to sustainability.
Second, the XTZ price is rising after Ubisoft announced the launch of Ubisoft Quartz. Initially, the gaming giant will bring the NFT feature to Ghost Recon Breakpoint, one of its popular games. The NFTs in this game will be minted using Tezos blockchain.
Third, the Tezos price is soaring as investors react to Hangzhou, the latest upgrade that was launched four days ago. This upgrade brought features like timelock encryption, views, and global table of constants among others. In most cases, cryptocurrency prices tend to gain after a major upgrade.
Tezos price prediction
The four-hour chart shows that the XTZ price has jumped sharply in the past few days. Still, it is substantially below where it was in October. A closer look at the chart shows that the coin has moved above the 25-day and 50-day moving averages.
Most importantly, the chart shows that Tezos has formed a widening falling wedge. In technical analysis, this pattern is usually a bullish sign. Therefore, there is a likelihood that the bullish view will continue in the near term.
