Tezos transactions and smart contract activity reports increase on NFT demand
According to recent news, the Tezos network has recorded impressive growth in the past 12 months through smart contract addresses and general adoption, the momentum primarily driven by non-fungible tokens (NFTs).
Activity within the Proof-of-Stake ecosystem has witnessed a spurt in growth lately as it is aiming to compete with Ethereum for NFT minting and markets.
As per data from Coin Metrics’ “State of the Network” report published on February 1, the total number of transactions that involved smart contracts has seen a surge in the last 12 months of more than 50,000 per day from less than 10,000 per day in January 2021.
The report has also studied that the growth has been largely driven by NFT platforms like the generative art platform FX Hash that saw increased interest. Additionally, gaming giant Ubisoft had also announced Tezos support for its gaming NFTs in December 2021.
It is seen that high Ethereum network fees have been driving NFT creators and buyers to alternative networks like Tezos. The network consists of a portal for all Tezos-based NFT marketplaces that it claims are “carbon-neutral”, having network fees that are “less than a penny.”
Although NFTs have been creating controversies due to the environmental issues surrounding the mining and trading of these digital artworks on Proof-of-Work networks yet Tezos has been widely touted as the right alternative to alleviate these concerns.
Active addresses on the network have been at an all-time high of over 45,000, while active smart contract addresses have reportedly tripled from under 200,000 to over 600,000 in the last 12 months. This also highlights the growth in NFT and DApps that have been using Tezos.
The study has also measured the total number of daily transactions, labelling those under ‘other transactions’. This figure had recorded a spike in August 2021 when the network launched an update, cutting block times into half. From a steady 40,000 daily transactions, it had surged to more than 250,000 and has remained at those levels since then.
According to Tezos platform’s own tracker, the current daily transaction figure is recorded at 309,431, which is less than a quarter of the daily transactions on Ethereum thats’ currently 1.17 million, according to data from Etherscan.
The February report also charted the number of addresses that contained more than at least 1 XTZ, which has recently surpassed 300,000, thus increasing 150 per cent from the same time last year.
Tezos had been established in 2018 as an ‘energy efficient’ proof-of-stake network which has a system called ‘baking’ for validating and publishing new blocks on the chain.
Its native token, XTZ, has reported a gain of 6.7 per cent over the past 24 hours, trading at $3.77, according to data from CoinGecko.
XTZ is presently 58.6 per cent below its October 4 all-time high of $9.12.