The status of Tezos in Q3 was recently reported by Messari – one of the biggest platforms for crypto data. In this article, we will cover everything important to investors and what we can expect from Tezos in the future. But before that, let’s take it back a notch. Q2, as you might already know, was the worst quarter for crypto in the past decade.
The total market cap went down by more than 50%, shocking those who believe (or believed) in crypto and extracting the grins of those who were negative towards cryptocurrencies. Real cryptocurrencies and decentralization enthusiasts, however, knew that 2021 was a bit of a bubble for the crypto space, which is why the crash was so big in 2022. However, enough about that; let’s talk Tezos Q3.
Tezos Q3 State
In this section, we will split the report into sub-sections, which makes it easy to navigate.
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Market Cap
The first thing you will notice is the difference between the Q1 2021 report and the Q3 2022 report in terms of market cap. In 2021, Tezos saw enormous growth which resulted in its market cap reaching more than $3.4 billion. In comparison, the Q3 2022 market cap is now around $1.2 billion. This is more than a 65% difference in evaluation.
Those who never believed in the network in the first place were quick to sell out of fear, leading the cryptocurrency to its inevitable downfall. However, those that are still into Tezos expect this to only be temporary, and so do we and many other analysts.
Total Minted Supply
The interest in Tezos has grown enormously, despite the dip on a surface level. This is evident when looking at the total minted supply in comparison to 2021. In Q1 2021, the total minted supply reached 9.65 million tokens, while in Q3 2022, the total minted supply was 11.04 million tokens.
Total Burned Supply
Another important factor we need to look at is the total supply burn. Once again, we will compare the current Q3 stats to Q1 2021.
In Q1 2021, the total burned supply was 112,234 tokens, which was quite a lot for even back then. In Q3 2022, the total supply burned reached 162,376 tokens. Yet, there is one thing that stands out more than anything else, and that is the total supply burn in Q2 2022. Although it is part of the previous report, it is important to note that during the crucial Q2 2022 Tezos burned more than 300,000 tokens, which is 3x higher than back in Q1 2021 and nearly 2x more than Q3 2022.
This just goes to show how much the network was trying to maintain its price so it won’t be completely erased from the crypto leaderboards and therefore from the portfolios of investors.
Total Token Supply
Despite the enormous amount of burn supply, if you took a better look at the minted supply, you’d notice that the overall supply would naturally go up.
Back in Q1 2021, the total number of tokens was 871.26 million, while in Q3 2022, the Tezos report shows that the total supply reached 932.32 million.
Staking Yield
The staking yield is one of the most important aspects of the crypto space. Users are looking for more and more ways to use liquidity pools to their advantage. One way to do this is through staking, which is when you lock in a certain number of your assets in order to gain a certain percentage of interest.
In the case of Tezos, it is well-known that it is always staying around the 6% mark without going over.
Let’s use the Q1 2021 report yet again to compare the market at its highest with Q3 2022 when the market is at its lowest (almost).
In Q1 2021, the staking yield percentage remained around 5.95%, which has survived through even Q2 2022. As of Q3 2022, the percentage has gone up by 0.03% and now stands at 5.98%, getting closer and closer to the 6% mark.
What’s Next?
Tezos, even if is currently recovering and in a bad state, is developing at a good rate. Although the overall network-wide activity has gone down quite a lot during Q3 2022 (from 383,000 in Q1 2021 to 250,000 in Q3 2022) the NFT sales volume has hit an all-time high. This also indirectly shows that the NFT interest in users is being reignited as everyone is becoming more comfortable with the current state of the crypto market. We can expect the interest in NFTs to continue growing as time goes on.
On another note, the next big update that is expected to go live by the end of 2022 will introduce SCORUs (Smart Contract Optimistic Roll-Ups). This will help the network to ensure further scalability options.
Finally, if Tezos wants to become a competitive player in the DeFi space, it will need to find a way to incentivize users and developers for activity. As of right now, Tezos is out of the top 50 base layer networks by DeFi activity rate.
You can find the full Tezos Q3 report here.
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