Tezos smart contract transactions increase fivefold, surge driven by NFTs

Over the past year, the Tezos (XTZ/USD) network has seen notable growth in overall adoption and smart contract addresses. It has mostly been driven by non-fungible tokens (NFTs), CoinTelegraph reported.

Recently, there has been a spike in activity within the Proof-of-Stake ecosystem as it gives Ethereum (ETH/USD) a run for its money where NFT minting and markets are concerned.

Smart contract transactions increased fivefold in a year

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The number of smart contract transactions rose from fewer than 10,000 per day in January 2021 to more than 50,000 in January 2022 according to Coin Metrics’ “State of the Network” report, published on February 1.

NFT platforms like FX Hash are seeing higher interest and driving growth according to the report. Recently, Ubisoft announced its gaming NFTs would be compatible with Tezos.

Tezos is a viable alternative to Ethereum

NFT sellers and buyers are driven away from Ethereum because of its colossal network fees. Tezos is emerging as a viable alternative. According to Tezos, all of its NFT marketplaces are carbon-neutral and the fees are negligible.

Minting and trading NFTs on Proof-of-Work networks is known to have a negative impact on the environment. It’s believed Tezos can help address these concerns.

Active Tezos addresses at all-time high

Active Tezos addresses exceed 45,000, which is an all-time high. The number of active smart contract addresses tripled in the past year, from fewer than 200,000 to more than 600,000. This reflects the fact that more and more NFTs and DApps are using Tezos.

Number of daily transactions at a record level

The total number of daily transactions reached a peak in August last year, when Tezos launched an upgrade. In its aftermath, block times dropped by 50%. They reached 250,000, up from just 40,000, and have remained at that level ever since.

At the moment, Tezos has just under 310,000 daily transactions. This may sound impressive, but they’re still fewer than a quarter of the daily transactions on Ethereum (1.17 million).

Finally, the number of addresses with balances of more than 1 XTZ gained 150% in one year, passing 300,000.