The cryptocurrency industry is much more than just Bitcoin and Ethereum. Alternative currencies, or altcoins, are frequently dismissed by those two communities, but they can still offer enormous potential. Tezos is one of the currencies that even Bank of America is keeping an eye on.
Bank of America Offers an Interesting Opinion
Until recently, banks and other financial institutions dismissed digital currencies as a “fad” that no one needed to pay attention to. These same service providers are now attempting to enter this market. Consumers of all types have expressed an interest in learning more about Bitcoin, Ethereum, and other cryptocurrencies. BoA, on the other hand, goes a step further by examining developer interest in alternative cryptocurrencies.
More importantly, BoA officials now believe that crypto assets should be classified as a new asset class entirely. Although the current Bitcoin market cap is impressive, the broader crypto ecosystem is worth even more. Investing in unexplored markets can be profitable, but it’s still important to do your own research.
The difficult part is determining which currencies to invest in. Bank of America considers developer interest and activity to be an important metric. As more developers express an interest in building on a specific blockchain, demand for the native asset may rise. Of course, this equation encompasses far more than developer activity, though it can serve as a useful metric.
Tezos appears to be one of the blockchain ecosystems to keep an eye on, based on recent developer activity. It has seen a significant increase in organizations and repositories, putting it ahead of The Graph, IOTA, NEAR protocol, EOS, Stellar, and other projects. An intriguing observation, as it appears that BoA strongly favors Tezos for its ever-expanding ecosystem, which rivals the top competing blockchains while being vastly more energy-efficient due to its PoS consensus mechanism.
Tezos Price Outperforms
Tezos’ native asset, XTZ, has skyrocketed in value over the last year. A price increase of 248.9 percent in a year is very impressive and demonstrates the price potential of cryptocurrencies. Tezos is on par with other major currencies in this regard, lending credibility to Bank of America’s decision to place it near the top of its list. Although current developer activity appears to offer some hope on that front, it is unclear whether that momentum can be sustained.
In the current cryptocurrency landscape, more than 100 projects have a market cap of more than $1 billion. Tezos is near the top of the list, with a valuation of more than $6.37 billion. The project is ranked 33rd among all cryptocurrencies, putting it on many people’s radars. If developers continue to find ways to use Tezos’ smart contracts, and more users continue to stake XTZ, interesting things could happen in the future.