BitFinex traders are longing on Tezos in record numbers as the XTZ price nears $4 price level, right after the 12% correction that the altcoin saw the past day. Tezos is now the top-performing cryptocurrency of the week as it increased by 17.9 percent in the past week, 27.68% in a month as we are reading more in the Tezos XTZ news today.
Investors are embracing the price action as the data from Bitfinex showing that traders are opening long positions for XTZ in massive numbers. According to the data shared by Josh Olszwicz, there are more XTZ longs open than ever before. According to the data, there are more than 1,773,443 contracts of Tezos longs opened compared to the previous 285,671 short positions with a ratio of 6:1.
This indicates that the traders believe the value of XTZ is going to hit higher in the upcoming weeks. This is made clear by the sentiment about Tezos’ price outlook shared by multiple technical analysts. They say that the altcoin is primed to reach higher highs as XTZ attempts to establish a new all-time high.
The Bitfinex traders are focused on the asset in a period of macro-consolidation as the phase of the market cycle results in the asset going parabolic while shedding historical resistances. One narrative that could be good for the upward movement of Tezos is how the network could be able to absorb some of the ETH market shares. Ethereum is now suffering from high transaction fees as the Defi protocols are promoting the processing of hundreds of thousands of transactions per day. according to ETH Gas Station the ethereum fee tracker, the cost of gas reached 160 Gwei which is 1500 times higher than it was four months ago.
The reason why the users of the network are paying so much is that they see demand in transacting with ETH-based protocols and using Ethereum-based assets. TEzos could take a piece of the ETH market share if its protocols and assets offer similar incentives for usage than the ones behind Ethereum. Now, ETH is beating tezos by many measures as it has the highest number of daily active addresses out of all contract blockchains.
Ethereum has more than 564,000 addresses, Tron has about 186,000, EOS has 55,100, Cardano has 11,900 while Tezos is at the bottom with 3,750 addresses.
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