Everyone is talking about The Merge, as if it was obvious that it is going to succeed. However, it is a technical challenge, and hence, it could fail. All the large investors are getting ready for this possibility and have started to invest into other coins and tokens, in case of. I propose to review each of these alternative options in a few articles. Today, we are going to explore Tezos (XTZ).
Why Tezos (XTZ) is an alternative to ETH
Tezos is a smart contract blockchain like ETH. You can leverage your assets, for instance Bitcoin (BTC), on Tezos blockchain, by using DeFi protocols. One of the latest one is Yupana.Finance, which proposes to be an alternative to Aave but on Tezos blockchain. With the recent Tornado Cash issue which has affected Aave, since they decided to censor all the addresses having used Tornado Cash, using a lending protocol on Tezos instead of ETH makes sense. Furthermore, Tezos is a self-upgradable blockchain, which means that Tezos does not need any hardfork to evolve, which is a key advantage over ETH.
How Tezos (XTZ) price could evolve in the near future
No forecast can be guaranteed. However, it is worthwhile to look at the trend:
We can see on this graph that XTZ could go down to around $1.3 if there was a new crypto crash like in June. However, if there is no crypto crash, it is likely that XTZ will find a support at $1.6 to further rebound to $2 or higher. XTZ is an interesting asset to bet on since it follows cycles which look predictable, except if there is big crash affecting all the cryptos.
How to make money with Tezos (XTZ)
Once you own XTZ, you can stake it on Tezos blockchain, which uses a proof-of-stake consensus, with an average return of 3% per year. It is the most secure solution. Furthermore, there is no unbonding period for Tezos. Therefore, as soon as you need liquidity, you can use it. Another option is to invest it into a DeFi protocol like Youves, where you can mint uUSD that you can then stake with 16% APR (Annual Percentage Rate).
In summary
Tezos (XTZ) is an excellent alternative to Ethereum (ETH) and does not need any hardfork to evolve like ETH since it is self-upgradable. With the risks linked to the upcoming Merge, it is likely that more and more investors will look at alternatives to ETH, and Tezos is one of them.
Disclaimer: this article does not contain any financial advice. The information is provided for general informational and educational purposes only.
Please find below a few links to earn a few coins...
