For the past 12 months, the Tezos network has seen a steady increase in smart contract addresses and adoption.
This is primarily due to non-fungible tokens being the primary driver of the increase. As a result of the move, Tezos now competes with Ethereum in terms of NFT minting and markets.
Non-fungible tokens, or NFTs, have recently gained traction in a variety of industries. More businesses and even celebrities are embracing this digital asset for a variety of reasons that suit their needs.
The use of NFTs continues, from creating expressions and awareness to generating non-profit funds to improving community engagement and interactions.
NFTs, like cryptocurrencies, are built using smart contract technology. As a result, they could maintain their decentralised nature by avoiding interference from third parties. This has also increased the activity of some blockchains involved in the development of non-fungible tokens.
The high fees on the Ethereum network are one of Tezo’s competitive advantages. This compels both NFT developers and investors to seek alternatives, among which Tezos is one. Furthermore, the Tezos network boasts a portal for all of its NFT marketplaces, which it claims to be Carbon-Neutral. Furthermore, the network’s fees are minimal.
Furthermore, there have been some contentious environmental issues associated with NFT minting and trading on networks that use the Proof-of-Stake (PoS) consensus mechanism. Tezos was widely praised for being a one-of-a-kind platform that dealt with these issues.
The Effects of the Increase in NFT on Tezos
According to Coin Metrics’ ‘State of the Network’ report, the number of smart contract transactions increased in the last year from 10,000 daily in January 2021 to over 50,000 daily. According to the report, some NFT platforms are responsible for the observable growth.
FX Hash, a generative art site that has gained popularity, is one of the great platforms. In addition, Ubisoft, a gaming behemoth, announced Tezos support for its gaming NFTs in December 2021.
Furthermore, Tezo’s active addresses have surpassed 45,000 for the first time. As a result, the number of active smart contract addresses has tripled in the last year, from less than 200,000 to more than 600,000 in the previous year. This explains the surge in Tezos-based NFT and DApps.
The total number of daily transactions under the category of Other Transactions is included in the research. According to the report, the figure began to rise in August 2021.
This was after Tezos released an update that cut block times in half. This has increased the number of daily transactions from 40,000 to 250,000, and it is still within this range today.
The report also included a chart of addresses that had at least one XTZ token. It has surpassed 300,000, representing a 150 percent increase over last year’s value.
Tezos, which was launched in 2018 as an energy-efficient PoS blockchain, validates and adds new blocks to its chain through a process known as Baking on the network.