Tezos, a blockchain that claims to power the Web3 revolution, has been the talk of the day following its native token’s recent price rally.
$XTZ has spiked by over 7% overnight, according to CoinMarketCap, putting the majority of top cryptocurrencies to shame. Its 24-hour trading volume has also reached a peak of $122.8million, a jump that is seven times its monthly average of $16.8m.
Analysts have accredited this price action to its surging trading volume on South Korean exchanges. Alongside this, the token has also enjoyed hefty liquidations.
Upbit, which is South Korea’s largest exchange by trading volumes, took the lead amongst other exchanges in the country. It recorded the highest volume in the last 24 hours, totalling to $39.7m, and is followed by Binance, BiONE, and XT.com.
Upbit was in the news recently for fending off hacking attempts nearly 160,000 times in the first half of 2023, as per a recently released report. Cold wallets, which have better security when compared to hot wallets, manage more than 70% of the assets on this exchange. It also has some hot wallets which are distributed into multiple structures rather than single structures for better security.
A three-month high in liquidations across futures exchanges was also etched for the Tezos token in the last 24 hours. This came around to be worth nearly half a million dollars.
Previously, data has shown that a strong pump on South Korean volumes and liquidation is often followed by a negative price action. Such an action has been observed with Bitcoin Cash ($BCH), Aptos ($APT), 1inch($1INCH), and Immutable ($IMX) in the past.
As of press time, Tezos continued its price rally as it rose significantly in price, currently changing hands for $0.79. Other coins in the market were seen struggling as it all went down in prices today. Top cryptocurrency Bitcoin, which managed to remain stable initially, also went on to trade in the red on its charts at the time of writing.
The Tezos blockchain uses a variety of proof-of-stake (PoS) consensus mechanism called liquid proof-of-stake. The validators are called ‘bakers’ who also play a key role in the network’s governance, voting on changes or updates to the protocol. Other $XTZ holders are also allowed to delegate their tokens, which double as votes, to bakers to vote on their behalf.
Recently, it has been quite involved in its NFT partnership with soccer club Manchester United. Last year’s signing of the multi-year agreement between Tezos and the club has been the highlight for the network. This has also led to the crypto asset being displayed on the club’s collection of men’s and women’s training uniforms.