cryptodaily.co.uk
The cryptocurrency industry is about much more than Bitcoin and Ethereum. Although alternative currencies - or altcoins - are often dismissed by those two communities, they can still offer tremendous potential. Tezos is one of those currencies that even Bank of America keeps on its radar.
An Interesting Opinion By Bank of America
Until a few years ago, banks and other financial institutions would dismiss digital currencies as a "fad" no one needs to pay attention to. Today, these same service providers try to tap into this market. Consumers of all kinds have shown an interest in exploring Bitcoin, Ethereum, and other currencies. However, BoA goes one step further by looking at developer interest for alternative cryptocurrencies.
More critical, BoA officials now believe crypto assets should become a new asset class altogether. Although the current Bitcoin market cap is impressive, the broader crypto ecosystem represents even more value. Tapping into the unexplored markets can prove viable for investors, although it remains crucial to do your own research.
Figuring out which currencies to invest in remains the tricky part. For Bank of America, developer interest and activity is a crucial metric. As more developers express an interest in building on a particular blockchain, there is a chance demand for the native asset will increase. Of course, this equation has much more than just developer activity, although it can serve as a viable metric.
Going by the recent developer activity, it appears Tezos is one of the blockchain ecosystems to keep an eye on. It notes a strong increase in organizations and repositories, putting it ahead of The Graph, IOTA, NEAR protocol, EOS, Stellar, and others. An intriguing observation, as it seems BoA favors Tezos heavily for its ever-expanding ecosystem that rivals the top competing blockchains while being vastly more energy-efficient due to its PoS consensus mechanism.
Tezos Price Performs Well
The value of Tezos' native asset XTZ has risen greatly in the past year. A 248.9% price increase in a year is very impressive and highlights the price potential of cryptocurrencies. Tezos is on par with other major currencies on that front, lending credibility to Bank of America putting it high on its list. Although the current developer activity seems to offer some hope on that front, whether that momentum can continue remains unclear.
More than 100 projects maintain a market cap of over $1 billion in the current cryptocurrency landscape. Tezos ranks high on that list with its valuation of over $6.37 billion. The project ranks 33rd out of all cryptocurrencies, putting it on a lot of people's radars. If developers continue to find ways to leverage Tezos’ smart contracts - and more users continue to stake XTZ - interesting things can happen in the future.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.