Tezos (XTZ) Rallies Against Market; $1 Price Possible?
While larger, more liquid coins are sliding, XTZ is extending its rally, as traders struggle to see a clear reason.
Tezos (XTZ) moved against the markets this Friday, extending the recovery to at least compensate its ICO price, if not repeat peak prices. As of 8:00 UTC, XTZ traded around $0.78, rising more than 15% in the past day, while leading coins were reversing the gains. XTZ market prices reached peaks at around $0.82 late on Thursday, before drawing back slightly, and volumes have picked up again.
The weekly gain for XTZ is also phenomenal after the long stagnation - more than 75%. For now, there are no dramatic messages to explain the price rise, but XTZ enjoys a heightened activity on the Kraken exchange and a liquidity boost. With the current price spike, a price of $1 is seen as more probable.
XTZ prices at the ICO were between $0.33 and $0.45 depending on bonuses. The project had expectations its asset would reach much higher valuations, but delays in the mainnet launch and low-liquidity trading of the pre-mainnet tokens saw XTZ hover at relatively low prices, rarely breaking above $5.
The most worrying thing about the Tezos ecosystem is the extremely low number of transactions. The network works, and has even performed votes, but the actual usage and distributed apps are yet to arrive. Compared to networks like EOS, which also launched their mainnet within the past year, Tezos is currently lagging, with just 2661 transactions in the past day. The low activity is no match for the increased trading.
Currently, XTZ has relatively low liquidity of $11 million’s equivalent, with most of the activity spread out to niche exchanges. Given the large-scale ICO, the relatively small XTZ market may not be able to absorb any significant selling.
One of the reasons for the heightened activity is that XTZ market prices are relavitely lower in the USD pairing and a bit higher in the BTC pairing, allowing for arbitrage on the exchange. On Gate.IO, XTZ trades at $0.77 in the USDT pair, and as high as $0.82 in the XTZ/BTC pair on Kraken.
The XTZ/ETH pair is an even larger anomaly, seeing prices as high as $0.93, allowing for additional arbitrage in a relatively illiquid pair.
Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.