Binance Opens Tezos (XTZ) Margin Trading
The increased liquidity of XTZ brought the decision of opening the riskier margin markets.
Binance will begin to offer margin trading for Tezos (XTZ), after the coin gained significant liquidity in the past weeks. XTZ jumped to $1.24, after a recent rally against the market.
Enthusiasm for XTZ is increasing, as the asset has lagged behind other coins and tokens. Binance has become one of the most active markets for the coin. Additionally, XTZ is now available through Coinbase, exposing it to direct US-based demand.
XTZ volumes increase in November, with the offering of Coinbase Custody with “baking” services. Now, margin trading may increase the possibilities to bet on XTZ price moves. The coin gets a boost from recent community enthusiasm, and the expectations are for significant success in the coming quarter.
Binance now offers a total of 27 assets for margin trading, with varying levels of borrowing depending on trading rank. The interest for borrowing XTZ is 7.3% annualized.
XTZ currently sees growing optimism for prices of $1.50 and above. But others see the coin mostly go through cycles of appreciation and selling.
For now, it is still early to say which direction XTZ will take. For now, the Tezos project is competitive with its governance model and baking, and still has a relatively strong community. With more coins locked for staking, the XTZ in circulation may be scarce enough to allow for more significant price appreciation.
The current XTZ market is still dominated by trading against BTC, with up to 50% influence of the XTZ/USDT pair. Binance is growing in influence for BTC price discovery. XTZ is also one of the few altcoins with a market cap above $1 billion, offering relative stability.
The Tezos network carries about 23 transactions per block, still carrying relatively less value in comparison to larger networks. However, at some points, as much as 80% of all XTZ is put into “baking” operations, thus limiting the transaction load.