Tezos First Quarter Status Report: Highlights and Insights

On April 24th, Messari released Tezos’ first quarter 2023 status report, with the following key points: Tezos’ market value increased by 55% in the current quarter, outperforming the overall encryption market (market value growth of 46%). However, the total gas fee revenue decreased by 23% month on month (excluding storage costs). In addition, Tezos has implemented various destruction mechanisms. This includes creating new accounts or smart contracts, allocating additional smart contract storage, and deleting validator errors. Despite these destruction mechanisms, the destruction rate is very low, with an annual proportion of less than 1%. The circulation supply of XTZ increased by 1.1% month on month and 4.4% annually in the quarter. After strong performance in the fourth quarter, Tezos’ online activities showed mixed results in the first quarter of 2023. Although the total active accounts increased by 1.4% month on month, reaching the highest level since the first quarter of 2022, new accounts decreased by 40% month on month. The surge in new accounts in the fourth quarter of 2022 was due to the casting of Manchester United NFT. In terms of network usage, the daily average smart contract call decreased by 25% month on month, reaching the lowest level in a year. However, the trading volume slightly increased month on month, with an average of approximately 45000 transactions per day last year. The decline in smart contract calls comes from the NFT and gaming fields.

Messari: Q1 Tezos market value increased by 55%, gas fee revenue decreased by 23% month on month

Tezos, a decentralized blockchain network known for its on-chain governance and smart contract capabilities, has released its first quarter 2023 status report as per Messari’s report. This report highlights some key points that shed light on Tezos’ market value, gas fee revenue, destruction mechanisms, circulation supply, online activities, network usage, and trading volume. In this article, we will discuss these points and provide insights into what they mean for Tezos and its investors.

Tezos’ Market Value Outperformed the Overall Crypto Market

Tezos’ market value increased by 55% in the current quarter, outperforming the overall crypto market’s growth of 46%. This is a positive sign for Tezos investors as it indicates that the network is on the right track. However, it’s worth mentioning that the crypto market is highly volatile and subject to sudden spikes and dips.

Decrease In Total Gas Fee Revenue

Despite the increase in market value, Tezos’ total gas fee revenue decreased by 23% month on month (excluding storage costs). Gas fees are essential for executing transactions and smart contracts on the Tezos network. A decrease in gas fee revenue may indicate lower network activity, but it’s important to note that gas fees are subject to market demand and supply.

Destruction Mechanisms in Place

Tezos has implemented various destruction mechanisms such as creating new accounts or smart contracts, allocating additional smart contract storage, and deleting validator errors. These mechanisms are important for maintaining the network’s health and preventing cluttering. However, the destruction rate is low, with an annual proportion of less than 1%. This indicates that the network is not experiencing significant overload.

Increase in Circulation Supply of XTZ

Tezos’ circulation supply of XTZ increased by 1.1% month on month and 4.4% annually in the quarter. This increase is a result of various factors, including mining rewards and transactions. It’s worth mentioning that an increase in circulation supply doesn’t necessarily mean a decrease in market value.

Mixed Results In Online Activities

After strong performance in the fourth quarter, Tezos’ online activities showed mixed results in the first quarter of 2023. Although the total active accounts increased by 1.4% month on month, reaching the highest level since the first quarter of 2022, new accounts decreased by 40% month on month. The surge in new accounts in the fourth quarter of 2022 was due to the casting of Manchester United NFT.

Decrease in Smart Contract Calls

In terms of network usage, the daily average smart contract call decreased by 25% month on month, reaching the lowest level in a year. This decline in smart contract calls comes from the NFT and gaming fields. However, the trading volume slightly increased month on month, with an average of approximately 45000 transactions per day last year.

Insights and Conclusion

Tezos’ first quarter 2023 status report provides some valuable insights into the network’s performance. Although there are some challenges in terms of gas fee revenue and network activity, the increase in market value and circulation supply is a positive sign. Additionally, the implementation of destruction mechanisms indicates that the network is focused on maintaining its health and sustainability. However, the mixed results in online activities and decrease in smart contract calls require further analysis and attention.

FAQs

1. What is Tezos?
Tezos is a decentralized blockchain network that allows for on-chain governance and smart contract capabilities.
2. What are gas fees?
Gas fees are fees paid for executing transactions and smart contracts on the Tezos network.
3. What are destruction mechanisms?
Destruction mechanisms are methods used to maintain the health and sustainability of the Tezos network by creating new accounts, allocating additional smart contract storage, and deleting validator errors.