Fantom (FTM) is a blockchain project that has garnered attention in cryptoto space for its unique characteristics and potential. Despite a recent drop in key metrics like Total Value Locked (TVL), there is something special about the project that many believe deserves attention.
Is Fantom about to disrupt the world of crypto?
One of the most important metrics for any blockchain project is TVL, which represents the amount of money invested or retained in the network. According for Dune Analytics data researcher under the pseudonym “OxFinish,” for Fantom, TVL experienced a massive uptrend in the fall of 2021 during Bitcoin’s second run to an all-time high (ATH), but has since fallen to its lowest. lowest point in almost two years, currently at approximately $292 million.
The full value of FTM is locked in from April 3, 2022 to the present. Fountain: OxFinish on Twitter.
Interestingly, TVL correlates perfectly with stablecoin market cap, the easiest thing to match across blockchains, as seen in the chart above.
Furthermore, according to Ox, the price of FTM is highly correlated with active users, as evidenced by the recent mini “Altcoin Season” surges in network activity when the price rises. Social dominance and USD transaction volume have also fallen, indicating a complex interdependence of key metrics within the ecosystem.
The Rising Star of the Fantom DeFi Ecosystem
Despite the above, Fantom has a vibrant ecosystem of projects building on it, with one decentralized exchange (DEX) standing out as the backbone of the network: SpookySwap. SpookySwap currently holds over 22% of TVL dominance, with only GMX on Arb holding a slightly higher percentage of about 24%. At one point, SpookySwap’s TVL was higher than Avalanche’s TVL.
As an automated market maker (AMM), SpookySwap allows users to trade any ERC20 token on the Fantom network without the need for an order book. Instead, the platform uses complex algorithms to determine the price of tokens based on supply and demand. This approach makes it easy for users to exchange tokens quickly and efficiently, while ensuring that prices remain stable.
Furthermore, SpookySwap offers a variety of features and benefits that make it attractive to users. It takes advantage of the high speed and low transaction fees of the Fantom network to provide a seamless and efficient trading experience for users. Furthermore, it offers a variety of advanced features such as limit orders, liquidity provision incentives, and a variety of trading pairs.
Despite the departure of Andre Cronje, the creator of Fantom, the Fantom ecosystem continues to grow and innovate, led by SpookySwap. However, the emergence of different Layer 2 (L2) solutions in the crypto space brings benefits comparable to Fantom’s, making attracting and retaining users more challenging.
However, according to Ox, looking at the metrics and recent innovations, there is still a lot of potential for Fantom to rise in the next bull market. Although it will require the project to continue to innovate and stay ahead of the curve to stand out in an increasingly crowded market.
Sideways FTM price action on the 1-day chart. Source: FTMUSDT on TradingView.com
Featured Image from Unsplash, Chart from TradingView.com
This post Could this project be the next big thing in Crypto?
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