Tezos, a renowned competitor to Ethereum and a self-amending proof-of-stake blockchain, has introduced its latest network improvement, named ‘Nairobi.’ This upgrade is the 14th of its kind and became operational at block #3,760,129. Alongside this, the Tezos Ecosystem Decentralized Autonomous Organization (DAO) was launched, intending to streamline on-chain funds allocation and treasury management within the Tezos community.
Yet, despite these promising developments, Tezos’ native cryptocurrency, XTZ, is currently experiencing a slump in the South African market. At present, the XTZ price, when converted to South African Rand (ZAR) is around ZAR 14.98, showing no significant boost as a result of the recent network improvements.
Diving into the Nairobi Upgrade
The Nairobi upgrade represents a collaborative effort among various teams, including Nomadic Labs, Marigold, TriliTech, Oxhead Alpha, Tarides, DaiLambda, and Functori, to enhance the user experience on the Tezos mainnet. This upgrade aims to increase transaction throughput, allowing for more rapid processing of transactions and lower fees.
Furthermore, with the Nairobi release, the Tezos protocol’s speed has improved eightfold. This enhancement is not only relevant for regular transactions but also for a wide array of operations such as smart contract calls, Smart Rollup maintenance operations, and management tasks.
Additionally, the blockchain now supports Smart Rollup functions, enabling seamless synchronisation of rollup kernels with future Tezos protocol upgrades. The Nairobi upgrade also introduces improved terminology to enhance communication and understanding within the community, along with faster pre-attestation propagation for quicker consensus.
The Introduction of the Tezos Ecosystem DAO
With the launch of the Tezos Ecosystem DAO, the Tezos community will now be able to better manage on-chain funds and treasury operations for important initiatives within the ecosystem. The DAO allows community members to submit funding requests for Tezos-centric initiatives, ensuring transparency, trust, and accountability within the community.
Initially, the DAO’s governance will follow a three-out-of-five multi-sig setup, with key organisations such as Trilitech, the Tezos Foundation, and the Tezos India Foundation holding the keys.
XTZ Price Struggles Amidst the Innovations
Despite these forward-thinking updates, XTZ prices have remained under considerable pressure, underperforming in comparison to cryptocurrencies such as Bitcoin and Ethereum. As of June 26, XTZ is valued at around ZAR 14.98, a 13% increase from its June 2023 lows. However, even with the presence of optimistic traders, XTZ bulls have not been successful in pushing the prices above ZAR 17.80, the high of June 2023.
In summary, although the overall cryptocurrency market seems to be on the verge of recovery, it has yet to surpass critical liquidation levels indicating a full reversal from 2022’s lows. XTZ remains bearish, down 45% from February highs, with prices just ZAR 1.87 away from the December 2022 lows.
*All currencies in the article have been converted to the South African Rand