Research Summary
The report provides a comprehensive analysis of the Tezos blockchain network, highlighting its performance in Q4 2023. It covers the network’s governance, scalability enhancements, NFT ecosystem, gaming sector, DeFi developments, and upcoming upgrades. The report also discusses Tezos’ partnerships, corporate adoption, and developer community.
Key Takeaways
Tezos’ Performance and Upcoming Upgrades
- Tezos’ Market Growth: Tezos’ market capitalization increased by 42% quarter-over-quarter to $914 million in Q4 2023, reflecting the overall growth of the crypto market. The XTZ token’s annual inflation rate was set at 42 million tokens, or 4.3% of the circulating supply.
- Upcoming Oxford 2 Upgrade: The Oxford 2 upgrade, set to go live on February 9th, will bring significant changes to Tezos, including PoS refinements, a redesigned Timelocks mechanism, and improvements to smart rollups. The upgrade excludes Adaptive Issuance and staking mechanism extension.
Tezos’ Gaming and NFT Ecosystem
- Growth in Gaming Sector: Tezos’ gaming sector saw a 358% increase in active addresses and a 96% rise in smart contract calls quarter-over-quarter, driven by new game launches like Coin Blast and Track Mind.
- NFT Ecosystem: The NFT ecosystem on Tezos is thriving, with significant contributions from developers, artists, and entrepreneurs. However, NFT activity saw a decline in Q4 2023, with a 25% QoQ drop in cumulative active NFT addresses and a 54% QoQ decrease in new NFT addresses.
Tezos’ DeFi Developments and Corporate Adoption
- DeFi Developments: Tezos DeFi’s Total Value Locked (TVL) in USD increased by 40% quarter-over-quarter, reaching $106 million, while TVL in XTZ decreased by 13%, indicating an impact from XTZ price fluctuations.
- Corporate Adoption: Corporate adoption of Tezos is on the rise with OKCoin Japan joining as a corporate baker, alongside industry giants like Deloitte, Ubisoft, and the upcoming addition of Google Cloud.
Actionable Insights
- Monitor Tezos’ Upcoming Upgrades: The upcoming Oxford 2 upgrade could bring significant changes to Tezos, including PoS refinements and improvements to smart rollups. Stakeholders should monitor these developments as they could impact the network’s performance and utility.
- Assess the Growth of Tezos’ Gaming Sector: The significant growth in Tezos’ gaming sector, driven by new game launches, indicates a thriving gaming ecosystem. Stakeholders should assess these developments for potential opportunities.
- Examine the NFT Ecosystem on Tezos: Despite a decline in Q4 2023, the NFT ecosystem on Tezos continues to thrive. Stakeholders should examine this sector for potential collaborations and initiatives.
- Consider the Impact of Corporate Adoption: The increasing corporate adoption of Tezos, with companies like OKCoin Japan, Deloitte, and Ubisoft joining as corporate bakers, could enhance the network’s credibility and utility. Stakeholders should consider the potential impact of this trend.
