Tezos Q1 2023 Status Report: Key Insights

On April 24th, Messari released Tezos’ first quarter 2023 status report, with the following key points: Tezos’ market value increased by 55% in the current quarter, outperforming the overall encryption market (market value growth of 46%). However, the total gas fee revenue decreased by 23% month on month (excluding storage costs). In addition, Tezos has implemented various destruction mechanisms. This includes creating new accounts or smart contracts, allocating additional smart contract storage, and deleting validator errors. Despite these destruction mechanisms, the destruction rate is very low, with an annual proportion of less than 1%. The circulation supply of XTZ increased by 1.1% month on month and 4.4% annually in the quarter. After strong performance in the fourth quarter, Tezos’ online activities showed mixed results in the first quarter of 2023. Although the total active accounts increased by 1.4% month on month, reaching the highest level since the first quarter of 2022, new accounts decreased by 40% month on month. The surge in new accounts in the fourth quarter of 2022 was due to the casting of Manchester United NFT. In terms of network usage, the daily average smart contract call decreased by 25% month on month, reaching the lowest level in a year. However, the trading volume slightly increased month on month, with an average of approximately 45000 transactions per day last year. The decline in smart contract calls comes from the NFT and gaming fields.

Messari: Q1 Tezos market value increased by 55%, gas fee revenue decreased by 23% month on month

Introduction

On April 24th, 2023, Messari released Tezos’ first-quarter 2023 status report, highlighting various important points. The report provides an insight into the market value of Tezos, destruction mechanisms, circulation supply XTZ, and online activities of the platform. This article explores the key takeaways from the report.

Tezos’ Market Value

Tezos’ market value increased by 55% in the current quarter, outperforming the overall encryption market that has seen a growth of 46%. This is a major achievement for the platform, and it is excellent news for investors. The increase in market value is an indication that the platform is gaining momentum and more investors are taking notice of its potential.

Destruction Mechanisms

Tezos is an open-source platform that prides itself on implementing various destruction mechanisms. These mechanisms include creating new accounts or smart contracts, allocating additional smart contract storage, and deleting validator errors. While these destruction mechanisms have been put in place, the destruction rate remains low, with an annual proportion of less than 1%. This implies that while the platform has these mechanisms in place, they are rarely used.

Circulation Supply of XTZ

The circulation supply of XTZ, the native cryptocurrency of Tezos, increased by 1.1% month on month and 4.4% annually in the quarter. This is a significant achievement as it indicates that more investors are buying into Tezos, which could boost its growth prospects. However, the platform needs to maintain its momentum and ensure that growth is sustainable.

Online Activities

After a strong performance in the fourth quarter, Tezos’ online activities showed mixed results in the first quarter of 2023. Although the total active accounts increased by 1.4% month on month, reaching the highest level since the first quarter of 2022, new accounts decreased by 40% month on month. The surge in new accounts in the fourth quarter of 2022 was due to the casting of Manchester United NFT. This suggests that the platform needs to attract new investors and retain old ones by developing more innovative and exciting projects.

Network Usage

In terms of network usage, the daily average smart contract call decreased by 25% month on month, reaching the lowest level in a year. However, the trading volume slightly increased month on month, with an average of approximately 45000 transactions per day last year. The decline in smart contract calls comes from the NFT and gaming fields. This is a concerning trend, as it implies that Tezos is losing momentum in important sectors. To address this issue, the platform needs to diversify its offerings and focus on attracting more developers to build on its platform.

Conclusion

The Messari’s Q1 2023 status report shows that Tezos’ market value is growing, destruction mechanisms are in place, circulation supply of XTZ is increasing, and online activities are mixed. However, network usage is declining, which is worrisome. To ensure sustainable growth, the platform needs to attract and retain investors, diversify its offerings, and focus on attracting more developers to build on its platform.

FAQs

Q1. What is Tezos?
A1. Tezos is an open-source platform that allows developers to create smart contracts and decentralized applications.
Q2. How is Tezos different from other blockchain platforms?
A2. Tezos uses a self-amending cryptographic protocol that allows it to evolve over time, making it more flexible and efficient than other blockchain platforms.
Q3. How can investors buy into Tezos?
A3. Investors can buy into Tezos by purchasing XTZ, the native cryptocurrency of the platform, on a cryptocurrency exchange.