Tezos’ First Quarter 2023 Status Report: A Comprehensive Review

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 popular blockchain-based platform, has released its first quarter 2023 status report, highlighting some critical points regarding its market value, gas fee revenue, destruction mechanisms, circulation supply, online activities, and network usage. In this article, we will analyze the report and provide you with a comprehensive review of the findings.

Overview of the Report

According to the report, Tezos’ market value has seen an increase of 55% in the current quarter, surpassing the overall encryption market (46%). However, the total gas fee revenue has witnessed a 23% decrease month on month, not accounting for storage costs. Tezos has implemented multiple destruction mechanisms to address this issue, including creating new accounts or smart contracts, allocating additional smart contract storage, and deleting validator errors. Despite these measures, the destruction rate is less than 1% annually.
The circulation supply of XTZ has seen a month on month increase of 1.1% and a quarterly increase of 4.4%. After a stellar fourth quarter, the online activities of Tezos have shown 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 spike in new accounts in the fourth quarter of 2022 can be attributed to the casting of Manchester United NFT.
In terms of network usage, the daily average smart contract call has witnessed a 25% decline month on month, marking the lowest level in a year. However, the trading volume has slightly increased, with an average of around 45000 transactions per day last year. The decline in smart contract calls stems from the NFT and gaming fields.

Tezos’ Market Value on the Rise

Tezos has an impressive track record of growth, and this quarter was no different, with a 55% increase in market value. This has surpassed the growth of the overall encryption market. This is because Tezos has continued to innovate and improve its platform. Its unique governance structure has allowed the platform to evolve faster than most other blockchains. Tezos’ growth this quarter is a testament to its strong fundamentals and its ability to keep pace with the rapidly changing blockchain ecosystem.

Gas Fee Revenue Decreases Month on Month

Despite the increase in market value, gas fee revenue saw a decrease of 23% month on month. However, this decrease does not factor in the storage costs. To address the issue, Tezos has put in place several destruction mechanisms. These mechanisms, including creating new accounts or smart contracts, allocating additional smart contract storage, and deleting validator errors aim to reduce storage costs and optimize the platform’s performance. Even with these mechanisms, the destruction rate is still under 1% annually.

Circulation Supply of XTZ Increases

Tezos’ quarterly report highlighted that the circulation supply of XTZ has seen an increase in the first quarter of 2023. With a month on month increase of 1.1% and a quarterly increase of 4.4%, the platform’s growth remains steady.

Online Activities Show Mixed Results

Tezos’ online activities in the first quarter of 2023 showed mixed results. 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 sharp increase in new accounts in the fourth quarter of 2022 can be attributed to the casting of Manchester United NFT.

Network Usage Declines for the Year

The daily average smart contract call witnessed a decline of 25% month on month in the first quarter of 2023, marking the lowest level in a year. This decline was mainly driven by a drop in the NFT and gaming fields. However, the trading volume has slightly increased, with Tezos averaging around 45000 transactions per day last year.

Conclusion

Tezos has achieved impressive growth in the first quarter of 2023, with its market value increasing by 55% while outpacing the growth of the overall encryption market. However, the report also highlights declining gas fee revenue and a decrease in the daily average smart contract call, mainly driven by a drop in the NFT and gaming fields. Despite these challenges, Tezos remains a robust and innovative platform with a unique governance structure that continues to evolve faster than most other blockchain networks.

FAQs

1. What are destruction mechanisms?
Destruction mechanisms refer to the creation of new accounts or smart contracts, allocating additional smart contract storage, and deleting validator errors to optimize the platform’s performance and reduce storage costs.
2. What is the annual destruction rate of Tezos?
According to the report, the annual proportion of the destruction rate is less than 1%, even with the implementation of destruction mechanisms.
3. Why did the NFT and gaming fields experience a decline in smart contract call?
The decline in smart contract calls was mainly driven by a drop in the NFT and gaming fields. However, the trading volume has slightly increased, with Tezos averaging around 45,000 transactions per day last year.