Bybit Arbitrage is a trading tool that simplifies arbitrage trading by capitalizing on funding rate and price differences.

If you're seeking consistent returns with minimal risk, Bybit Arbitrage is the perfect ally.

 This robust tool empowers you to generate regular profits with minimal risks by capitalizing on price disparities across different markets. Its user-friendly interface lets you easily spot and exploit these differences, so that you can execute flawless arbitrage trading in the crypto market with confidence. Read on to learn how Bybit Arbitrage makes arbitrage trading an effortless way for you to achieve low-risk gains.

 is the buying and selling of the same or similar asset(s) at the same time across different markets to earn from slight price deviations. This act of purchasing an asset at a fixed price — while simultaneously selling it at a higher price — allows a trader to instantly make profits without any risks. 

While arbitrage trading has long been a staple in traditional financial markets, such as stock and forex, the advent of crypto trading has propelled arbitrage trading to new heights — thanks to the heightened volatility of the crypto market. Additionally, unlike traditional stock markets, crypto markets are traded 24/7, offering more opportunities for arbitrage traders to reap profits from the price gaps across exchanges and markets. 

 across exchanges or within a single exchange. Keep in mind that if you opt to arbitrage trade across different platforms, accessing your profits may prove to be complex, due to the need to transfer your assets between the exchanges, which can take up to several days to complete. On the other hand, arbitrage trading on a single platform is more straightforward — but more competitive as well.

There are multiple arbitrage trading strategies, but the most common ones in the crypto market include funding rates arbitrage, spot-futures arbitrage and futures arbitrage. 

Funding rates arbitrage allows traders to profit from variations in funding rates between 

 contracts. In contrast, spot-futures arbitrage enables traders to profit from price disparities between the spot and 

 for the same asset. Meanwhile, futures arbitrage involves profiting from price discrepancies between futures contracts with different expiration dates.

Bybit Arbitrage is a trading tool that helps traders identify arbitrage trading opportunities in two ways: funding rate and spread. 

The user-friendly interface organizes trading pairs based on either funding rates or spreads in different markets, so that traders can easily spot disparities in funding rate or price across the markets at a glance. 

Bybit Arbitrage is exclusively available to 

 mode. It facilitates arbitrage trading for USDT Perpetual, USDC Perpetual and USDC Futures contracts, thereby allowing you to enjoy arbitrage trading opportunities between USDT 

Spot pairs and USDT Perpetual pairs, or USDC Spot pairs and USDC Perpetual/Futures pairs. 

The Funding Rate Arbitrage feature exploits differences in funding rates between the Spot and Perpetual/Futures markets on the Bybit exchange. With the Funding Rate feature, traders can earn funding fees while simultaneously managing their positions in order to minimize potential losses and maximize gains through positive and negative arbitrage strategies.

Funding rates for the different trading pairs are listed in descending order. This helps traders to easily leverage the interest rate differential between Spot and Perpetual/Futures contracts.

The Funding Rate feature also allows you to 

 orders (with the same amount, but in different directions) in both Spot and Perpetual/Futures, which enables you to earn funding fees while mitigating potential losses (with potential gains).

holders in Futures/Perpetual contracts pay short position holders. You can leverage this situation by executing a positive arbitrage, which involves

 buying a Spot pair and taking a short position in 

Perpetual to earn steady funding fees. Alternatively, if the funding fee is negative, short position holders pay long position holders. In this case, you would perform a negative arbitrage by shorting a Spot pair and going long in a 

The Spread Arbitrage feature helps traders capitalize on price discrepancies between different markets for the same cryptocurrency asset. With this feature, you can easily compare the market prices of an asset traded across various trading pairs and contracts. While Spread Arbitrage may be similar to spot-futures arbitrage, it offers more arbitrage opportunities since it covers a broader range of markets, unlike spot-futures arbitrage, which targets specific markets

With Spread Arbitrage, the aim is to profit from the eventual price convergence as you buy the crypto asset at a lower price in one market (e.g., Spot) and sell it at a higher price in another market (e.g., Futures). 

As the futures price will eventually align with the Spot price when the contract expires, you’ll be able to take advantage of the simultaneous price disparity for the same asset.

In order to trade with Bybit Arbitrage, you’ll first need to 

. Currently, Bybit Arbitrage is exclusively accessible via the 

 for the web version, which will be launched soon!

Bybit Arbitrage offers multiple advantages.

Bybit Arbitrage is a powerful tool for traders seeking low-risk gains in the volatile crypto market. With its intuitive interface and exclusive features, traders can effectively leverage funding rate and price differences to maximize profits while minimizing risks. Bybit Arbitrage offers diverse benefits that make arbitrage trading more accessible and profitable than ever before.

Beginner

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How to Use Bybit Arbitrage to Achieve Funding Rate and Price Difference Arbitrage

An Ethereum Spot ETF is an exchange-traded fund that tracks the real-time price of Ether and allows investment through traditional stock markets. Learn more.

Earlier this year, the U.S. Securities and Exchange Commission (SEC) gave the green light to a number of Bitcoin Spot exchange-traded funds (

), sparking optimism that similar approval might be extended to Ethereum Spot ETFs. Adding to the excitement, news of Ethereum Spot ETF approval in Asia’s first region has heightened anticipation for a potential approval and launch in the U.S. However, despite the buzz, some industry observers remain skeptical. This article explores the potential impact of Ethereum Spot ETF approval on the broader crypto market.

An Ethereum Spot ETF is an exchange-traded fund that tracks the real-time price of 

 and allows investment through traditional stock markets. It offers investors a way to invest in Ether without having to actually buy or hold the asset itself.

An Ethereum Spot ETF operates by pooling investor funds to purchase Ether, which is held in reserves by the ETF.

Rather than navigating the complexities of 

 and exchanges, investors buy shares of the ETF through regular brokerage accounts, just as they would with traditional stocks. These shares represent a stake in the Ether held by the ETF, providing a simple and regulated way to own Ethereum indirectly.

In order to create ETF shares, authorized participants — usually financial institutions — purchase Ether in exchange for ETF shares of equal value, which are then sold onto the market. An authorized participant can also redeem shares by buying enough ETF shares and exchanging them for Spot Ether and taking those shares away from the market.

As a result, the price of ETF shares tends to fluctuate in line with Ethereum's Spot market price. If it didn’t, there would be an 

 opportunity to profit from any mispricings in the ETF price. However, it’s still theoretically possible for the ETF to trade at different prices simply because of supply-and-demand factors.

ETFs as securities are regulated by the SEC, so an Ethereum Spot ETF provides a regulated product that investors can purchase. By contrast, Spot Ether is being investigated by the SEC to determine whether it should be classified as a security, and currently lacks regulatory clarity. 

This setup offers numerous benefits for investors. It simplifies the investment process, allowing anyone with a brokerage account to invest in Ethereum without setting up a crypto exchange account or managing storage. This can save time and give some investors greater peace of mind. An ETF structure also provides the regulatory clarity that institutional investors need, which can enhance liquidity and trading volumes.

Security is paramount in the realm of cryptocurrency, and the ETF provider takes it seriously. To safeguard Ether holdings, ETF providers employ a combination of 

 and insured custodial services. As a result, they could potentially minimize the risk of theft or loss that individual crypto investors may encounter.

The Ethereum Spot ETF bridges traditional finance (TradFi) and the exciting (but still growing) cryptocurrency space. It offers the security and ease of trading associated with traditional financial markets while opening up investment opportunities in Ethereum for a broader audience.

Both excitement and regulatory scrutiny characterize the current landscape of Ethereum Spot ETFs. Major financial institutions like 

 and Fidelity have submitted applications for these ETFs to the SEC. Still, decisions have been delayed, with the next 

If applicants begin updating their filings by April, this may indicate they’re incorporating feedback from the regulator, which could be interpreted as a positive sign. However, a lack of updates to filings could indicate that the SEC isn’t maintaining the same level of discussions with issuers that led to its 

Another challenge is that the SEC is still investigating whether Ether should be classified as a security, especially since it transferred its consensus mechanism to 

. Earning rewards through staking could meet criteria that determine whether an asset is a security. Ethereum also provides a foundation for 

 (DeFi), which could add to the complexity of the review. 

Analysts' opinions vary regarding the likelihood of ETH ETF approval. One Bloomberg analyst, for instance, 

 chance of approval by May. However, the SEC's recent silence might hint at a less favorable outcome.

The approval of Ethereum Spot ETFs is eagerly awaited because it could mirror the impact of Bitcoin Spot ETF approval, which led to an influx of capital in the market. It would mark a pivotal milestone, likely to attract increased investment and further validate cryptocurrency. The crypto community is closely monitoring these developments, as the coming months will be crucial in shaping the future of Ethereum investment opportunities.

 was recently given to the first Spot Bitcoin and Ethereum ETFs in one of the Asian regions. This landmark decision positions the city as a trailblazer in the Asian financial landscape, embracing the integration of popular cryptocurrencies into mainstream investment avenues.

This milestone has sparked excitement within the crypto community, indicating a positive reception toward digital assets in that region. Analysts believe this move could set a precedent for other jurisdictions to follow, potentially leading to broader acceptance and recognition of cryptocurrencies as a legitimate asset class.

These newly approved ETFs are expected to attract a wave of fresh investors — both retail and institutional — by offering a regulated and familiar investment option for exposure to cryptocurrencies. This growth of interest could increase stability in the crypto markets, possibly influencing the price movements of Bitcoin and Ethereum in the region.

The timing of this approval is noteworthy, considering that the U.S. could also be on the cusp of approval of an Ethereum Spot ETF. If this proactive approach inspires other financial centers beyond the U.S. to consider similar approvals, it will palpably contribute to the global expansion and maturation of the cryptocurrency market.

Current Impact of Ethereum Spot ETF Applications on the Crypto Market

The buzz surrounding Ethereum Spot ETF applications is noticeably affecting the crypto market, particularly Ethereum's price and overall sentiment. Submission of new ETF applications to the SEC has coincided with an 

, pushing it to around $3,700. This uptick reflects the market's optimism and positive sentiment regarding the potential for easier access to Ethereum. However, the market has exhibited some volatility as well, with Ether dropping over 14% in a week in early April. 

Despite these fluctuations, there's a general expectation that ETF developments would significantly impact Ethereum's price dynamics, similar to what was observed with the recent Bitcoin Spot ETF approvals. Moreover, the recent approval of cryptocurrency ETFs has further fueled optimism and positive expectations for increased investment inflows and a broader recognition of cryptocurrencies.

To sum up, the current impact of Ethereum Spot ETF applications on the crypto market is marked by heightened anticipation along with some volatility. Ethereum's price is responding to changes in the regulatory landscape and the potential for broader adoption of cryptocurrency-based investment products.

What Will It Mean if an Ethereum Spot ETF Application Is Approved?

The approval of an Ethereum Spot ETF application by the SEC would mark a significant milestone for the cryptocurrency market, especially for Ethereum. Following are some of the potential benefits.

Drawing parallels to the earlier Bitcoin Spot ETF approvals, some pundits expect an initial surge in Ethereum's price following the expected announcement, reflecting renewed confidence and interest in Ether as an asset. Over the long term, Ethereum Spot ETFs could contribute to growth and stability, similar to the impact that Bitcoin Spot ETFs have had on BTC’s price.

However, there are key differences to consider. The SEC's cautious stance on Ethereum — notably because of its PoS consensus mechanism — could influence the approval process and subsequent market reactions. In addition, Ethereum's unique ecosystem, including its role in DeFi and 

, could lead to different market responses as compared to those following the Bitcoin Spot ETF approvals.

The potential approval of Ethereum Spot ETFs is a crucial turning point for the crypto market, promising easier access, increased investment and greater legitimacy. Although short-term price fluctuations may occur, the long-term effects could echo the positive growth recently witnessed with Bitcoin Spot ETFs, promoting a more mature investment environment for Ethereum.

Intermediate

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Ethereum Spot ETF Approval: Its Impact on Crypto Markets

Grayscale Investments has filed a registration statement on Form S-3 with the SEC to register shares of its Grayscale Ethereum Trust (ETHE) as part of efforts to uplist the trust to a spot Ethereum ETF on the NYSE Arca.

Daily Top Performer — Automata Network (ATA)

The SPX index is up 0.02%, investor focus on earnings and U.S. interest rates continues. The broader cryptocurrency market is down, with Bitcoin and Ether dropping by 3.78% and 2.41%, respectively in the past 24 hours.

Today’s outperformer is ATA, which jumped 8.9% after Automata launched Multi-Prover AVS on Eigenlayer Holesky Testnet to boost decentralized security.

Automata Network (ATA), founded in 2019, is a Web3 platform providing private web services for decentralized applications, focusing on secure, anonymous transactions and governance. Key features include a private voting system and MEV minimization to enhance user privacy and security. Automata's Multi-Prover AVS, which utilizes TEE Coprocessors to enhance security, is now available on the Eigenlayer Holesky testnet. This system employs the TEE Prover as a secondary security measure in decentralized systems. Operators, restakers, and developers are encouraged to learn more about this advancement on their website.

Check Out the Latest Prices, Charts, and Data of 

Grayscale Investments, the world's largest crypto asset manager, has filed a registration statement on Form S-3 with the SEC to register shares of its Grayscale Ethereum Trust (ETHE) as part of efforts to uplist the trust to a spot Ethereum ETF on the NYSE Arca. This filing follows NYSE Arca’s application and is a crucial step in the regulatory process required for offering shares continuously upon approval. The shares will not be sold until the registration is declared effective, and this offering is subject to the Securities Act of 1933. Grayscale emphasizes that the trust, not registered under the 1940 Act, involves high risk and volatility, is focused solely on Ethereum, and does not offer direct investment in Ethereum.

BlackRock's spot bitcoin ETF, IBIT, has significantly impacted the firm's overall ETF flows, comprising 24% of its total. Eric Balchunas, Bloomberg's Senior ETF Analyst, highlighted the fund's success during a panel on Hong Kong's newly approved spot crypto ETFs. Since its launch in January, IBIT has attracted consistent inflows for over 70 days, accumulating more than $18 billion in assets under management and becoming one of the most successful ETFs in history. The IBIT fund is second only to Grayscale's ETF in terms of assets but has seen remarkable trading volume along with other spot bitcoin ETFs, totaling nearly $230 billion.

Gamium, supported by Parachain Ventures, DAO Maker, and Mr. Beast among others, has its token $GMM listed on major exchanges with a fully diluted valuation of around $43M. The platform is promoting a beta points airdrop to reward early users, where participants can sign up and earn points through various activities like launching an MST, trading, daily logins, and referrals. Details on point earning and distribution are available in a dedicated blog post. However, potential users are cautioned to research due to the inherent risks associated with DeFi protocols and trading.

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Grayscale Files for SEC Registration to Convert Ethereum Trust into a Spot ETF on NYSE Arca

Sharky is a Solana-based lending and borrowing DeFi solution that utilizes NFTs as loan collateral.

Cryptocurrency lending and borrowing has always been a prominent niche of the decentralized finance (

) industry, championed by platforms like Aave (

). A much rarer variant of DeFi borrowing and lending is based on non-fungible tokens (

Sharky.fi, or simply Sharky, is a Solana-based lending and borrowing protocol that uses NFTs as collateral to facilitate the DeFi processes on the network. By putting up NFTs as collateral, users can borrow funds via short-term loans in Solana's native SOL tokens. For lenders, the platform is also a great way to earn high APY rates in just 7 to 14 days, while having their loaned funds protected by the NFTs.

Having established itself as the leader of NFT-based lending and borrowing on Solana, the Sharky project has ambitious plans to integrate two more highly popular crypto asset types — Ordinals and real-world assets (RWAs).

 (SHARK) is a lending and borrowing app on the 

 (SOL) blockchain that lets users provide NFTs as collateral to access short-term loans in SOL tokens.

 Lenders can view NFTs offered as collateral, and make loan offers secured by their preferred NFTs.

Although Sharky's public launch on the Solana mainnet dates back to April 2022, the platform operated without its 

, SHARK, for its first two years in the market. The SHARK token was eventually launched in mid-April 2024.

Using its innovative business concept, Sharky quickly established itself as the leader of NFT lending. According to the project’s team, Sharky has a 90% share of the NFT lending market on Solana and has issued more than 1.4 million NFT loans.

Following the recent launch of its SHARK token, the project aims to integrate additional crypto asset types in the future. These include 

 (RWAs). Another ambitious product type considered for future implementation on the platform is uncollateralized consumer loans.

As a lender on Sharky.fi, you can browse NFTs from a variety of collections offered on the platform and make a loan offer for potential borrowers. The collections available on Sharky include the platform's own 

 collection, Mad Labs, Solana Monkey Business (SMB), Tensorians, Namaste and more. Lenders’ offers are shown to potential borrowers on the platform, who then choose the best offer based on their borrowing needs.

The NFT provided by the borrower is used as collateral, and the lender makes their funds available in SOL tokens. Lenders earn interest on the funds, with the loan duration typically between 7 and 14 days. Interest rates, naturally, will vary depending upon on-platform activity. Usually, 

 for active loans range between 120% and 220%, though they can go up to 360%. As such, Sharky loans are an excellent way for lenders to earn some serious interest quickly. If a borrower fails to repay the loan in full, the NFT used as collateral is transferred to the lender.

For borrowers, the Sharky platform is an excellent opportunity to access SOL funds for short-term needs quickly and flexibly using their NFTs, rather than cryptocurrency, as collateral. The best part of the platform's borrowing mechanism is that you remain in possession of your NFT during the loan period as a borrower. While your NFT is used as collateral, its ownership isn't transferred to the lender while the loan is active. The ownership transfer may only happen at the end of the loan period if you fail to repay the loan in full.

Maintaining the ownership of your NFT allows you to keep using it on various DeFi and other apps for purposes such as staking or satisfying 

 eligibility requirements, among other potential uses.

Sharx is the platform's own NFT collection. One of the most popular collections used in Sharky's lending and borrowing operations, sharx is made up of 10,111 adorable shark characters. Purchasing a sharx NFT not only opens up borrowing opportunities but also entitles you to upgrade or boost your Chowder points, rewards that are used in Sharky's loyalty program. 

As a sharx holder, you're entitled to the airdrop of Sharky.fi’s governance token, SHARK, and you can also stake sharx to earn FISHY tokens.

The newly launched SHARK token is envisioned as the platform's governance asset, with a total supply of 100 million. As of the time of writing in late April 2024, only some specific details on the actual governance processes powered by SHARK are available. Thus, the token's actual use in on-platform governance is expected to be outlined in the future.

SHARK will be airdropped in two phases, with 4.25% set aside for the first phase and 3.5% for the second. Of the former, 70% is allocated to its community, with the remaining 30% is distributed to partner communities. Meanwhile, the second phase is held as a staking pool event with a lockup duration of 30 to 60 days exclusively for OG, new users and sharx holders.

 of Sharky. Unlike the brand-new SHARK token, FISHY was issued back in 2022 at the start of the platform's operations. FISHY can be earned by staking sharx NFTs, accumulating reward points and participating in Sharky's social media campaigns. The token can be used to boost sharx NFTs, which in turn can earn you additional Chowder points. FISHY also gives you access to NFT raffles and auctions held on Sharky.

The SHARK token can be bought on Bybit through a Spot pair with USDT (

). Additionally, you can also take part in Bybit's current campaigns for the token for the chance to grab a share of the 

, which includes a Token Splash event featuring 456,000 SHARK through Apr 30, 2024, 9AM UTC, and a Lucky Draw with 58,000 SHARK in rewards through Apr 30, 2024, 9:59AM UTC.

Lending and borrowing using NFTs as collateral is a novel concept that has earned Sharky leadership positions in this niche. As more platforms adopting this business model emerge, the competition in the field is likely to intensify. However, as of now, Sharky remains the absolute leader of the Solana-based NFT lending and borrowing market. 

As NFTs experience a resurgence in popularity following the post-2021 dip, DeFi solutions that make innovative use of these assets, such as Sharky, stand to benefit. Later in 2024 and beyond, we’ll likely hear more about NFTs being used as legitimate collateral in crypto finance — a new trend helped to no small degree by the Sharky platform.

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Sharky.fi (SHARK): The Decentralized Platform for Instant NFT Loans

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Tezos may be a newer altcoin in the crypto market, but the prospects for XTZ are bright. Find out if you should diversify your portfolio with Tezos.

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Tezos is an open-source platform whose native utility token and cryptocurrency, XTZ, burst onto the crypto scene with a phenomenally successful initial coin offering (ICO) in July 2017. Tezos

 in the process. However, disagreements between the founders followed, which led to delays in the token’s release. Those treacherous days seem long past, and XTZ is now the ”next big thing” in the crypto industry. But of course, it’s far from the only cryptocurrency to have had this assertion thrown its way. Looking ahead to Tezos’s future, is the hype justified — and is it a good investment?

Tezos’s future price is predicted to be bullish in the long-term based on broad factor analysis. Many point to the decentralized nature of the network and the increasing partnership with Ubisoft, Red Bull Racing Honda, and Kolibri will usually translate to higher value of XTZ.

– and decentralized applications (DApps)-hosting platform that allows peer-to-peer transactions. The native

, XTZ, is also referred to as Tez or Tezzie. Tokens are rewarded to XTZ holders when they partake in its

However, there are some fundamental differences between Tezos and other blockchain-based cryptocurrencies. For example, on the Tezos platform, there are individuals called “bakers.” Essentially, they perform the same function that miners do on other networks, securing and managing the network, verifying transactions and distributing block rewards. But instead of using expensive mining hardware to perform these actions, they are done virtually through the PoS consensus.

 allows users to make decisions and facilitate changes within the ecosystem. Tezos is decentralized, and its fundamental approach is meant to provide transparency and democracy for stakeholders to voice their opinions on protocol changes.

This means that changes can be implemented on the network without forking. A problem with forking is that it can lead to divisions and disagreements among the crypto community and miners. Tezos aims to solve this problem by letting its network participants — the bakers — decide on network changes themselves. 

Unlike Bitcoin, XTZ is rewarded to bakers (validators) who produce new blocks in the Tezos blockchain. Since bakers run on a full node to maintain the network, it also means that XTZ can’t be mined. Another way of earning XTZ is to stake XTZ for rewards. For example, a delegator (token holder) can delegate XTZ tokens to a baker for staking rewards.

Ultimately, XTZ aims to differentiate itself from Bitcoin or Ethereum by preventing hard forks, like

, that may tarnish the future development of the blockchain.

The idea for Tezos was published in a white paper in 2014, and the platform went online in 2018. It was founded by Arthur Breitman and his wife, Kathleen Breitman. Breitman, formerly a financial analyst, argued that Bitcoin’s biggest flaw was its lack of governance process. Tezos’s proof-of-stake consensus improves its scalability, and its implementation of smart contracts eradicates security concerns concerning the adoption of digital assets.

Unlike many other cryptocurrencies, community involvement plays a significant role in the development of Tezos’s network. It is an open-source crypto network which aims to create the best rewards. Accordingly, token holders receive rewards for taking part in its PoS consensus mechanism.

To understand how it works, first you need to know more about the “baking” process.

To become a baker, one must possess 8,000 XTZ. When an individual becomes a baker, they can then add blocks to the Tezos blockchain — a process known as baking. The more XTZ a baker possesses, the higher the chance they’ll succeed in earning rewards.

However, if someone doesn’t possess 8,000 XTZ (or the computing power to take part in baking), they can

. Although not on the same level as bakers, delegators can still earn a significant passive income through staking. The delegators lend their tokens to the bakers, giving them a higher chance of baking a block. The baker then usually shares any additional XTZ earned with the delegator. 

A unique feature of Tezos is that it’s upgradeable without needing

. That means changes can be implemented onto the network without forking. A problem with forking is that it can lead to divisions and disagreements among the crypto community and miners. Tezos aims to solve this problem by letting the network participants (bakers) decide on network changes themselves. 

Only bakers can vote on any changes. However, if a delegator doesn’t agree with a baker’s stance, they can delegate to a different baker who is more aligned with their views on an issue. Thus, any bakers who don’t vote in alignment with their delegators’ viewpoints may wind up with reduced delegation power. In addition, only bakers can propose changes to the protocol. 

Hence, Tezos is significantly different from more traditional PoS systems, in which each token holder can participate in the governance process. With Tezos, bakers cast a vote on behalf of their delegators. This is why the PoS system used on the Tezos blockchain is a type of Delegated Proof-of-Stake (DPoS).

However, it is not the same system as other blockchains whichuse DPoS, such as

. More specifically, what Tezos uses is called Liquid Proof-of-Stake (LPoS). This is because delegation is optional, while with DPoS, it is not.

The PoS consensus mechanism prevents manipulation. For example, Tezos allows users to move their stake from one baker’s node to another’s, encouraging bakers to be on their best behavior.

Since Tezos doesn’t have a central database, manipulators would require massive computing power in order to take over the network. Even if they did, the manipulator would still need consensus from stakeholders for any protocol changes. Cryptographic encryption adds yet another security layer to safeguard users’ information.

Tezos’s History: The Rise and Fall and Rise

The Tezos white paper was released in 2014 by its founders, giving details about the Tezos project. Their ICO was launched in July 2017 and raised $232 million in Bitcoin and Ether, despite having a target of just $20 million. At the time, it was the most successful ICO ever. The fact that they raised 11 times more than they had hoped for meant they were able to hire the best developers to build up the Tezos blockchain from scratch. 

However, internal squabbling between its founders led to a delay in releasing the token, as well as lost investor confidence. Its 

 was eventually launched in September 2018. Tezos was trading at around $2.00 in April 2020, but shot up to $4.44 in August, reaching an all-time high.

After this, it regressed to around the $2 mark through the latter stages of 2020, but in early 2021 it surged, hitting an all-time high of $5.58 in February 2021. Tezos was still around the $5 mark at the time of writing (late March 2021).

Many analysts in the world of crypto are bullish about the long-term prospects of Tezos. Let’s look at what makes Tezos an excellent long-term investment.

It may come as a surprise to learn that Tezos doesn’t have a maximum supply. Most cryptocurrencies have a supply cap. For example, Bitcoin has a cap of 21 million. There is also a 5.5% annual inflation rate, meaning the number of tokens grows by 5.5% a year. You may think that these factors make for poor prospects. But that is not the case, because of

 This means that people generally hold onto Tezos as an asset because of the benefits of doing so. Therefore, if Tezos has a valid use, then its lack of finite supply may become irrelevant. Also, the inflation rate can encourage people to stake their XTZ, which in turn can make the Tezos network more secure. 

Additionally, investors and traders have to consider supply and demand. Around

 is locked up in staking, meaning there is less XTZ circulating on the order books of exchanges. However, demand for XTZ is on the rise. In May 2020, XTZ had more trading volume relative to the 

 than every other cryptocurrency listed, even Bitcoin. 

Additionally, developer demand on the Tezos blockchain is also on the rise. Michelson, its native smart contract language, facilitates formal verification, which gives smart contracts an extra layer of security by enabling high-value transactions to be tested before they’re published on the blockchain. This has led to an influx of security token offerings (STOs) being launched on the platform.

 has transpired, making Tezos the primary platform for such tokens.

Another reason to be bullish is the Tezos Foundation. It was set up in 2017 to incentivize developers to come to XTZ and facilitate the Tezos blockchain’s entire ecosystem. This has helped provide grants to developers working on projects in its ecosystem. Like the consensus mechanism, the foundation’s makeup is decentralized, and elections are held to vote for foundation president. 

It has also forged some high-profile partnerships for different projects. These include the Korea University Blockchain Research Institute for smart contact research, and (with BTG Pactual, the largest investment bank in Latin America). These factors are all promising signs for potential developers who are thinking about getting involved in an XTZ project.

Last but not least is something we’ve already covered: the decentralized governance of Tezos. The Tezos blockchain is one of the most decentralized platforms out there. This means that amendments are made based on participants’ votes. Upgrades to the blockchain have included Carthage and Babylon, which have both received high voter participation. This level of involvement and improvement is something that brings stability to a network. Also, if there’s one thing that hardcore crypto enthusiasts genuinely love, it’s staying true to its decentralized nature — just as Satoshi intended. 

XTZ does not have a maximum supply, since it’s using a PoS consensus. As of June 2021, there are a total of 850,351,373 XTZ in circulation.

However, most of the tokens were sold during the

. 80% of the initial supply went to investors, while the remaining 20% was delegated to the Tezos Foundation and Dynamic Ledger Solutions, which was the Breitmans’ original venture.

After the recent bull run in which Tezos reached a high of over $7 in May 2021, XTZ’s price is decreasing rapidly, corresponding to the BTC dip. In early June, XTZ was trading at around $3 to $4, but the price is still dropping. XTZ was trading at

Of course, when you’re determining if an asset is a good long-term investment or not, a key factor to look at is long-term price predictions. Luckily, most analysts are bullish about Tezos for the long-term. 

What stands out about price predictions for XTZ is that there are very few (if any) bearish price predictions for the next few years. Practically all are bullish in their outlook. As we’ve mentioned, the supply and demand of XTZ points toward price increases in the future.

 is taken up in staking, demands are still increasing. Therefore, we think that XTZ could be an excellent long-term investment. How far it goes may depend on several factors.

The buzzword “Ethereum killer” is bandied about a lot in the world of crypto, but we think that this is unlikely to happen in the case of Tezos. The market recognition and headwind that Ethereum already has put it at a considerable advantage. Alongside this, the long-delayed Ethereum 2.0 upgrade is likely to address issues such as scalability that have plagued Ethereum for years.

Ethereum has over 200,000 developers working on the platform, which uses different coding languages to maximize the compatibility for smart contracts and DApps development using their blockchain.

Tezos, on the other hand, uses Michelson, which is an entirely new language, made specifically for them. This makes it harder for developers to move over to Tezos’s blockchain.

Nevertheless, Tezos has already carved up a nice little niche as the primary home of STOs. Also, there is the fact that Tezos has unique factors which make it very appealing to developers and investors alike. Its LPoS consensus mechanism makes it truly decentralized in nature. In addition, its self-amending blockchain will prove to be attractive to developers looking for stability without the need to fork. Therefore, while we don’t think that Tezos will be an Ethereum killer, we predict it will be able to live alongside it quite happily.

While we’re confident that XTZ is an excellent long-term investment, how high its price will go is difficult to predict. Along with most cryptocurrencies, a lot will depend on how high Bitcoin goes. Bitcoin will still likely have a massive effect on the altcoin market for years to come. However, in order for XTZ to be a good investment, it also needs to be a success in its own right. We’re very confident that this will be the case. 

It is, of course, impossible to predict what will happen with 100% certainty. It is difficult enough to make predictions based on what we think 

 happen, let alone when considering unpredictable world events that can hit, affecting market prices. The best recent example of this is what happened in March 2020, when markets crashed amid the onset of the COVID-19 pandemic.

However, things bode well for XTZ. It is picking up momentum at the right time and growing in popularity, slowly but steadily. It has enough redeeming features to make it stand out from the crowd, and we think that it can be a success in the long run. We believe this makes Tezos an astute addition to your cryptocurrency portfolio. 

What Is Tezos and Is XTZ a Good Investment in 2022?

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