What happened
Another day and more volatility for the cryptocurrency market. This time there is some good news and some bad news from the industry which seems to be taking slow and steady steps towards a more mature business model.
on the positive side, Tezos (XTZ 8.14%) has jumped 5.7% in the past 24 hours as of 12:45 p.m. ET Alphabet’Google announced that it would become a verifier. But solana (SOL -5.82%) fell 7% and Huobi (HT -9.19%) fell 10.1% in line with the industry-wide decline.
So what
Tezos went up after Google announced that it would become a validator for the network. This will allow customers to run nodes on Google Cloud, which will allow project developers to build on the blockchain. In theory, this would make the blockchain more accessible to developers and bring Tezos more in line with competitors.
Solana Spaces, the retail stores that were created to onboard new users to Solana with digital goods and physical merchandise, announced it is closing its New York City and Miami stores. It was supposed to be a place to showcase Solana innovations like the Saga smartphone, but low activity on the blockchain and falling prices have made it difficult to run a retail store. This isn’t really a direct impact on the coin or blockchain itself, but rather a sign that Solana and other cryptocurrencies have yet to hit mainstream adoption.
Huobi’s token price dropped today, but it’s still been a good week for the coin. The token-related exchange announced that it will be one of the first exchanges allowed in Hong Kong after the territory announced pro-crypto regulations. The battle for market share is likely to intensify, so early movers may have an advantage.
There are often speculative moves in cryptocurrency, but all three are based on fundamental changes in business today.
now what
Although the news has been relatively positive for Tezos and Huobi this week, attracting users remains a challenge. And an exchange like Huobi is entering a market where competition is driving margins down to zero.
Tezos has a community of artists, but transactions and contract calls have been falling steadily for over a year, according to blockchain data.
Despite all the challenges Solana has seen transactions go through the blockchain for over a year.
Crypto has its ups and downs and today is no different. But the long-term value will come down to the number of users who build on the blockchain and interact with the technology. This is why my money is on Solana out of these cryptocurrencies, but the short term market is loving the news from Tezos.
Susan Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Travis Hoyam has positions at Alphabet and Solana. The Motley Fool has posts at Alphabet and Solana and recommends it. The Motley Fool has a disclosure policy.
Source
This news is republished from another source.
