With its future prospects looking bright, can Tezos upset Ethereum's DeFi dominance - AMBCrypto

The reduction in transaction costs managed to attract new users on the network and in retrospect, positively impacted the price. Further, earlier this month, Homebase – a protocol for building DAOs, was launched on the Tezos blockchain.

Now, this would allow users and developers to form several other entities using the network’s smart contract feature. Not to forget, asset loan services were also launched recently on the Tezos network via its partnership with DeFi platform EQIFI.

Additionally, at press time, Tezos’ official data showed 76.16% of the total supply was staked on the network. Staking has essentially limited the number of tokens available in the market and aided in inducing a price-uptrend pressure.

Consider the network-value-to-transaction value. This ratio explicitly denotes the relationship between the market cap and transfer volumes. Whenever the NVT is high, it indicates that the network value is outpacing the value being transferred on the network.

Such trends tend to rub-off quite positively on the valuation of any alt. During the alt’s May rally, the same had been in revolving in the 100-200 range, but has been under 40 since the second week of September.

Tezos is in the process of catching up with Ethereum’s dominance in the DeFi space and has around 135 projects and dApps in development on its network.

What’s more, cryptocurrency firms in Switzerland have been working with Tezos to launch tokenized assets like popular stocks on its blockchain. The same would act like a breather in the future amidst the evolving and competitive environment. Thus, the short-term setbacks would eventually be overshadowed by the favorable long-term prospects.