How will the ‘Tenderbake’ upgrade affect the value of the XTZ token?

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tezos coin

Tezos XTZ/USD is essentially an open-source platform that enables smart contract functionality and is based on the Proof-of-Stake (PoS) consensus model. 

This blockchain network has recently undergone a major upgrade that aims to evolve the technology further. 

The “Tenderbake” upgrade as a catalyst for growth 

On April 1, 2022, according to an official announcement on Twitter, Tezos activated a major upgrade known as “Tenderbake.”

This upgrade is named Ithaca 2 and replaces the current consensus algorithm, which is known as Emmy with Tenderbake, which enables lower block times, and produces faster transactions while also helping applications run a lot smoother.

Ithaca 2 also prepares the Tezos blockchain for scalability, such as rollups for WebAssembly as well as Ethereum Virtual Machine (EVM) compatibility.

The main goal of this upgrade is also to reduce the requirement to become a validator by 25%, which was 8,000 tez. Now, it is dropped to 6,000 tez, which in turn adds to the decentralization of the network.

Best of all, the smart contract calls on Tezos have increased from 100,000 per month as recorded in January 2021 to over 6.2 million in January, 2022.

All of this will drive the value of the token forward. In fact, on April 2, we covered how XTZ maintained a bullish rally after double-digit gains within the span of 24 hours.

Let’s go over how the token might perform throughout April.

Should you buy Tezos (XTZ)?

On March 4, 2022, Tezos (XTZ) had a value of $3.95.

xtz usd

In order for us to be truly able to see what this value point indicates for the value of the XTZ cryptocurrency token, we will be going over the token’s all-time high point of value, alongside the performance it showcased throughout March.

The all-time high value of the Tezos (XTZ) token was on October 4, 2021, when it reached a value of $9.12.

When we go over the performance of the token throughout the previous month, Tezos (XTZ) had its lowest point of value on March 7, when it decreased to $2.87. 

However, the highest point of value the token got to was on March 31, when it reached $4.01 in value.

This gives us an indication that the token increased in value by $1.14 or by 39%.

With this percentage increase taken into consideration at $3.95, the Tezos (XTZ) cryptocurrency token is worth buying as it can reach $4.5 by the end of April 2022.

The post How will the ‘Tenderbake’ upgrade affect the value of the XTZ token? appeared first on Invezz.

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