Tezos XTZ / USD takes advantage of what is known as a liquid proof of stake (LPoS), and this is important to know when evaluating the value of your cryptocurrency. You see, LPoS is an algorithm used by computers running Tezos software and used to secure the network, validate transactions, and distribute freshly minted XTZ.
How XTZ plays a role in Tezos
However, in order for nodes to participate in governance, they must stake XTZ in a process known as baking. If you want to be a baker, as a node you will need 8,000 XTZ. Users can delegate their tokens to the other bakers and assign votes to other users so that they can earn XTZ rewards. Bakers are incentivized to perform well due to the fact that all users have the flexibility to switch between the bakers they delegate XTZ to, depending on voting preferences, of course.
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The XTZ cryptocurrency plays an important role when it comes to keeping the Tezos network running and can be used for holding, spending, shipping, or even baking.
By owning XTZ, as a user, you can get the ability to vote on updates, where each vote is proportional to the amount of XTZ baked.
So now you have a general idea of the true value of XTZ and why it matters, but what does this mean for its price and long-term value?
For the entire month of May, new builders, creators and users contributed to 1.5 million contract calls on Tezos.
Should you buy XTZ?
On June 9, Tezos had more than 283,000 transactions in the 24-hour span, which is equivalent to 23% of daily ETH transactions for that specific time period. The value of XTZ at the time was $ 3.41.
On June 10, Tezos won an award for the best social impact project of 2021 at the AIBC summit in Dubai.
We can see that the value remains above the $ 3 mark, but due to its popularity, recent awards, and community involvement, it has the potential to climb back up to the $ 5 mark or even higher later. of June.
Data source- tradingview.com
On June 14, XTZ continued to trade just above the $ 3 level. At $ 3, it might be worth investing in, and we might even see it return to the $ 7 value it was on May 7, when Graph Blockchain Inc. announced that they began mining proof-of-stake from Tezos’s native token. XTZ.
The more popular Tezos becomes, the more value it will be, and at $ 3, with the expectation that it will return to $ 7, it could be a good investment. However, $ 3 serves as a key support level, so if the coin falls below, it could serve as a signal to avoid buying, as consumers no longer have an interest in buying.
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