• Tezos launched its Mumbai Protocol upgrade, which introduced cutting-edge features and a smoother transition for Bakers.
• XTZ’s price action was negative but demand in the derivatives market was high.
• The Mumbai Protocol upgrade brought Smart Rollups and decreased block duration to 15 seconds.
Introduction to the Mumbai Protocol
The Tezos network recently underwent a major upgrade with the launch of its Mumbai Protocol. This protocol brings several changes and new features to the network, including cutting edge features that firmly place Tezos far ahead of its competition. Additionally, this upgrade also saw an increase in social engagement, reaching over 26 million mark on April 2nd 2023.
About the Mumbai Upgrade
The Mumbai era is one of the most significant upgrades for Tezos, as it introduces Smart Rollups – a layer 2 scaling solution built directly into the protocol – as well as decreasing block duration from 30 to 15 seconds due to pipelined validation. Furthermore, existing features like Tickets have been updated as part of this protocol upgrade. It was validated and approved by the community through its on-chain governance process.
XTZ Price Action
Despite all these changes, XTZ’s reaction was not up to expectations – according to CoinMarketCap, XTZ’s weekly chart was painted red and at press time it was trading at $1.10 with a market capitalization of over $1 billion. Despite this setback in price action, investors remained confident in Tezos‘ capabilities going forward due to the successful launch of its latest update.
Demand in Derivatives Market
Although XTZ’s price declined after the launch of Mumbai Protocol, demand in derivatives markets remained high throughout this period – suggesting that investors remain confident about Tezos‘ outlook going forward despite short term volatility in prices. This is further evidenced by XTZ’s positive sentiments reflected among investors during this time period.
Conclusion
Tezos‘ Mumbai Protocol brings several changes and new features that firmly place it ahead of other blockchains currently available in terms of scalability and security solutions offered by them respectively. Although there has been some temporary decline in XTZ’s price action following this update, demand for derivatives remains high amongst investors indicating their continued confidence towards Tezos capabilities going forward despite any short term volatility experienced by it currently or otherwise