Bullish on XTZ: Top 3 reasons why Tezos (XTZ) price has gained 85% this month

Major protocol improvements, attractive staking rewards and real-world adoption from banks back the current bullish price action seen in XTZ.

Tezos, a proof-of-stake blockchain network that is designed to evolve over time without the needing to undergo a hard fork. Data from 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.

1 - Protocol upgrade reduces transaction costs

• 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.

• 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 .

2 - 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.

• 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.

3 - 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%.

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Tezos supply statistics. Source: TZStats