• XTZ's Newsletter
  • Posts
  • March Was Another Month Of Amazing Growth In Tezos Adoption Rate

March Was Another Month Of Amazing Growth In Tezos Adoption Rate

Tezos Adoption

For the past nine months we’ve seen the amount of contract calls growing at exponential rate. Contract calls are a specific type of transactions: contract calls are the interaction with applications that are built on the Tezos blockchain.

This makes the amount of contract calls a great metric to measure real use and adoption of Tezos as a smart contract platform.

March had 3.8 times more contract calls compared to February. Additionally, we’ve seen a steady increase in overall transactions. Daily average is closing in on the 50K and today we’ve seen it topping the 100K as recent as today. The growth is substantial and continuous.

NFT’s

The biggest catalyst has been an exploding NFT market on Tezos platforms like TzColors, HicEtNunc, Kalamint, the Alchememist and more. Tezos NFT platforms have proven to be attractive for artists that want to mint, sell and collect their art as an NFT due to two main factors.

Tezos has very low transaction fees (Minting can be done for $0.10 – $0.20). And the second factor is the fact that Tezos is a PoS chain, which uses very little energy. Especially compared to a PoW chain like Ethereum, where the main NFT volume is currently.

A growing group of artists do not want to support a blockchain that uses such an enormous amount of energy, and have switched to Tezos for that very reason. TQ Tezos has written an article that compares BTC, ETH and Tezos’ energy consumption.

Due to this switch, the NFT community is growing fast on Tezos, and so is the volume and the quality and quantity of NFT art. This means that the NFT market is getting even more interesting on Tezos, and the amount of artists that will dip their toes in the Tezos NFT market will only grow faster.

An interesting fact about Alon Goren is that he is also from blockchain venture studio “Draper Goren Holm”, who already invested in Tezos Stable Technologies and Kalamint. They have just announced that they invested more in the Tezos ecosystem by working with the Tezos Foundation to further incubate and accelerate startups built on the Tezos blockchain. More about that here.

A huge indicator for NFT growth is the fact that the very popular NFT marketplace Opensea, which currently only operates on Ethereum, is adding support for Tezos-based NFT’s soon. Another big NFT platform, KnownOrigin was also seen liking Tezos TQ posts here.

A token that is currently interesting due to an actual use-case, is $hDAO. $hDAOs can be used to make NFTs more visible on NFT platform Hicetnunc via the hDAO feed in the future, and they also make NFTs ‘swappable’.

$hDAO tokens are obtained by selling, or buying NFT’s on Hicetnunc, or you can buy them on Quipuswap. There is also the option to provide liquidity for hDAOs on Quipuswap. You can gain hDAOs through buying and selling on the Hicetnunc platform.

In any case, Quipuswap is a DEX and can obviously be used for trading. With wrapped tokens like ETHtz, tzBTC and wXTZ, and stablecoins like USTtz and kUSD, combined with the extremely low transaction fees on Tezos, Quipuswap is a great exchange to trade on and we will see liquidity and volume grow over time.

We have seen something interesting happen with Quipuswap and that is the introduction of NFTs alongside fungible tokens such as Tezos and Bitcoin.

As the elegantly designed FA2 Tezos token standard can cater for both fungible and non-fungible tokens, added to the fact that tokens can be added to Quipuswap in a decentralized fashion, users have started adding NFTs to Quipuswap. This could provide some interesting use-cases that have not been thought of yet.

Algorithmic Stablecoins

kUSD peg to the 1$ value should improve now that it’s available in more trading pairs with the addition of Quipuswap and we could see some interesting arbitrage opportunities between Dexter and Quipuswap, and possibly even between USDtz and kUSD. This arbitrage is thought to help algorithmic stablecoin assets such as kUSD get closer to the peg. Happy trading!