NFT marketplaces and DeFi leading user activity
Dapps on the Tezos blockchain are receiving increased interest from users this week as investors continue to diversify the services they use. NFT marketplaces Hic et Nunc and objekt.com are riding high, registering over 21,000 active wallets in the last seven days. Tezos Domains appear to be still grabbing attention as rumors of an ENS-style airdrop continue to circulate.
While the numbers of active wallets interacting with the dapps are not massive when compared to similar dapps on Ethereum or Binance, for example. It’s a strong signal that Tezos dapps are providing utility and attractive services to those investors on the hunt. While NFT marketplaces are leading in regards to attracting the active wallets, its DeFi and exchange dapps are seeing the biggest percentage increases week over week.
QuipuSwap, a token swapping platform similar to Uniswap, has increased its active wallets by over 179%. At the same time Kolibri, a Tezos-based stable coin built on Collateralized Debt Positions (CDP), is up by more than 232% week over week.
What is Tezos?
Tezos is one of the most impressive early blockchain projects out there. While it is not part of the very first generation of blockchains like Bitcoin and Ethereum, Tezos benefits from the perspective of later development. Tezos has brought innovation to the blockchain space by drawing lessons from the drawbacks of already existing blockchains.
Because of its on-chain governance model, Tezos is able to seamlessly upgrade and add innovation on a regular cadence. In terms of speed, Tezos can output 200 transactions per second, while Ethereum supports 15 transactions per second, and Bitcoin only 4,6. Tezos’ Proof-of-Stake mechanism also requires significantly less energy and cost to operate, making it an ideal alternative platform for building blockchain applications that are eco-friendly. Something that has really come to the fore as we enter 2022.
Last but not least, Tezos offers a thriving environment for the development of decentralized apps and DeFi solutions. The fast transaction speed, low gas fees, and the self-amending features of the blockchain make it very flexible in terms of dapp development. Something that Rarible, an NFT marketplace that originally launched on Ethereum, wanted to take advantage of by launching on Tezos by the end of 2021.
Positivity Pushing XTZ Price?
Growing usage and adoption of dapps on the Tezos blockchain should eventually lead to more trading volume on the network which can play a vital role in the price of its native token XTZ. After a solid year in 2021 that saw the price increase 137%, 7-day price growth may indicate that increased activity on the network will continue to stimulate the price of XTZ further. Of course, this all depends on the consistency of the dapp usage activity over a more extended time frame, before we’re able to draw any full-blown conclusions.
It is early days for the Tezos dapp ecosystem but it appears strong communities are building behind the leading dapps. The situation will be monitored closely as new dapps arrive throughout 2022.
The above does not constitute investment advice. The information given here is purely for informational purposes only. Please exercise due diligence and do your research. The writer holds ETH, BTC, AGIX, HEX, LINK, GRT, CRO, OMI, IMMUTABLE X, ENS, GALA, AVASTR, GMEE, CUBE, RADAR, FLOW, FTM, BNB, SPS, WRLD, and ADA