The New Year has seen a degree of a turnaround in the crypto space, as many tokens have recorded significant gains. One notable gainer is Tezos (XTZ). Since the start of the year, the XTZ token has more than doubled in price, and it goes without saying that it could be on the radars of most crypto traders by this point.
More importantly, the coin has managed to break into the top 10 crypto projects by market cap thanks to this rally. Currently, XTZ enjoys a market cap of $1.9 billion. However, this begs the question of whether the current surge is sustainable or just another crypto bubble.
Key Triggers
Over the years, the crypto world has seen many such remarkable rallies, which have later turned into monumental bubbles. Hence, it would perhaps be far more prudent to be cautious about the current rally in Tezos. Alex Saunders, who is a well-regarded commentator on the crypto space, recently tweeted about the XTZ rally. He stated that there are rumors of hard forks since “people aren’t happy” with XTZ. He went on to assert that once the “euphoria” about the token is over, it is going to “fall hard.”
The XTZ blockchain is something that is described as a “self-amending blockchain” and allows for the development of smart contracts that allow two entities to interact on the basis of predetermined conditions. Due to its very nature, Tezos cannot go through a hard fork unless there is an agreement between the majority of participants.
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In order to achieve that, the blockchain would need an update of the whole system, which could prove to be a particularly tough thing to accomplish. That being said, it should be noted that the Tezos token has performed impressively over the past months, and investors need to look closely before making any decision.
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