Tezos: Assessing the state of XTZ post Mumbai Protocol activation
- The Mumbai Protocol brings several changes and new features to the Tezos network.
- XTZ’s price action was negative, but demand in the derivatives market was high.
Tezos [XTZ] registered a massive boost in its social engagement on 2 April 2023 as the metric exceeded the 26 million mark. The primary reason fueling this surge can be Tezos’ latest Mumbai Protocol upgrade, which got activated a few days ago.
Realistic or not, here’s XTZ market cap in BTC‘s terms
The Mumbai Era is here
Tezos, in its latest edition of The Baking Sheet, revealed interesting information about the Mumbai protocol. As per the newsletter, the Mumbai era is one of the most significant upgrades for Tezos, which introduced cutting edge features that firmly place the Tezos blockchain far ahead of its competition.
— Tezos (@tezos) March 29, 2023
Additionally, because of the development effort and Bakers’ updating their node to Octez v16.1, Tezos had one of the smoothest transitions.
This was a major release as it corrected an implementation flaw in the new Mumbai baker binary that could occasionally cause bakers to incorrectly endorse blocks and deteriorate network liveness.
All about Mumbai Protocol
Tezos‘ Mumbai Protocol upgrade was validated and approved by the community through its on-chain governance process. With the activation of the Mumbai Protocol, Smart Rollups got introduced, which is a layer 2 scaling solution built directly into the protocol. dApps can utilize specialized hardware resources for handling a large volume of transactions, thanks to smart rollups.
Moreover, the block duration on Tezos’ Layer 1 has been decreased from 30 to 15 seconds as a result of pipelined validation in Mumbai. Existing features like Tickets, which enable direct transactions between users, were also updated as part of the protocol upgrade.
How much are 1,10,100 XTZs worth today
XTZ’s reaction was pale
Though the Mumbai activation was a major network upgrade for Tezos, XTZ’s response was not up to the mark. According to CoinMarketCap, XTZ’s weekly chart was painted red, and at press time, it was trading at $1.10 with a market capitalization of over $1 billion.
It was surprising to note that despite the Mumbai Protocol launch, XTZ’s development activity declined last week. Nonetheless, XTZ’s positive sentiments went up, reflecting investors’ confidence in the token.
The future of XTZ might look better than the present, as its demand in the futures market was considerably high, which can help push its price up in the coming days.
On top of that, LunarCrush’s data revealed that XTZ’s Altrank improved, which was, typically, a bull signal.