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After Coinbase Pro said that it will now support Tezos, XTZ jumped 16.4% within an hour with trading XTZ against Bitcoin and USD expected to start on August 5 once a four-stage rollout is accomplished.
Coinbase has just blessed all the XTZ traders. In an official announcement of July 30, 17:00 UTC Coinbase said that it is adding Tezos to Coinbase Pro. The news that Tezos will feature on Coinbase’s platform for active traders made XTZ price jump 16.4% within an hour from $1.04 to $1.21. The general altcoin markets remained stable.
Tezos (XTZ) will be available to all pro users in all supported jurisdictions except New York. Trading XTZ against the US dollar and Bitcoin will start on August 5 according to the company’s statement. Tezos is a proof-of-work smart contract platform that comprises of built-in features for user governance. It is trying to use the governance features to “democratize” protocol upgrades through incenting user participation.
The roll out on the Coinbase Pro platform will happen in four stages. It will start with a “transfer-only mode” for the first 12 hours. In this stage, Coinbase Pro customers cannot place and fill orders. Users should get ready for an incremental ramp up in trading just 15 minutes of going live with XTZ. The company said:
“Once sufficient supply of XTZ is established on the platform, trading on the XTZ/USD, and XTZ/BTC order books will start in phases, beginning with post-only mode and proceeding to full trading should our metrics for a healthy market be met.”
After a reserve is created successfully, the platform will get into the minute-long “Post only” phase. In this phase, users can post limit orders that remain unfulfilled. The third is the “Limit-only” phase where limit orders will begin matching but customers cannot submit market orders.
Once the embryonic stages are over, full trading will start. Nonetheless, Tezos will remain unavailable on Coinbase itself.
Conbase’s Tezos announcement follows its recent addition of EOS, Chainlink, Dogecoin, XRP, and DAI for the exchange’s pro and retail customers. Recent history may suggest that Tezos support will be availed to all Coinbase customers soon excluding New York.
Tezos unveiled its proof-of-stake crypto and decentralized computing platform via a $232 million ICO in July 2017. Currently, XTZ enjoys over $800 million market cap after jumping in price to $1.24 in the past two weeks. Tezos multi-million-dollar blockchain was officially launched in September 2018. It enables its stakeholders to vote on-chain on proposed upgrades.
After Tezos was added to Coinbase Custody in March, some people contested opposing the extension of voting rights to custodial token holders. But, it is not yet clear if Coinbase Pro will enable “self-amending” duties for the users of its platform.
XTZ Price Analysis
The price of the XTZ token rose by 16.4% from $1.04 to $1.21 an hour after the announcement. At its peak in that hour, it reached $1.26, a 21.9% increase from the previous stable trading range between $1.00 and $1.04. At the time of writing, the token is hovering around $1.25 representing a 23.25% increase in the past 24 hours.
On the other hand, the entire altcoin markets are slightly moving suggesting that XTZ responded greatly to the news and not to broader market movement. Trading volume is also up considerably. It has increased from a 7-day average of $5.6 million to the 24-hour volume of $10.7 million. That represents a 91.1% increase.