Fantom ecosystem

Base-layer Blockchain rivalry is heating up. While Ethereum is becoming overcrowded and plagued by high gas prices, Solana and Binance Smart Chain has provided substantial competition. These two were joined by two newcomers, Fantom and Avalanche. In this article, you will discover why you need to keep an eye on Fantom.

Fantom has experienced rapid growth in recent months. Fantom had a 7x spike in transactions from August to September 2021, all in a single month. Take a look at the Daily Transaction Chart below:

Fantom Daily transactions chart

Source: ftmscan

On the other hand, the number of Fantom addresses has risen by 35% in the previous three months. Also, it’s important to mention that $ FTM’s price has increased 9x in the last three months.

Another critical factor in any blockchain is the gas price. In the same three-month period, the price of gas climbed just twice, which is still a relatively small rise in dollar terms. This means that even if Fantom scales significantly, it will not experience the same gas issues as Ethereum. Just like the picture below shows:

Fantom average gas price chart

Source: ftmscan

All of these are signs indicating that the Fantom ecosystem is becoming increasingly popular. In this article, you will discover why Fantom has such massive usage.

What is Fantom Blockchain?

Fantom is a smart contract platform compatible with the Ethereum Virtual Machine that is scalable and decentralized. It competes directly with top blockchains like Ethereum, Polkadot, Cardano Solana, and others.

Fantom’s architecture comprises several decentralized systems that operate autonomously in their zones and communicate with one another as needed. This guarantees that one zone’s traffic congestion performance does not influence the rest of the network. Here is a video presentation about Fantom:

Each dApp has its own unique and independent Blockchain set of governance rules, tokens, and tokenomics. Fantom says that its architecture can scale up to 300,000 transactions per second, where one transaction gets confirmed in 1-2 seconds, and its cost per transaction is USD 0.0000001.

Finally, Fantom is also used for pharmaceutical Supply chains, smart education, medical records, and finances.

Fantom’s Team

Fantom’s CEO/CIO is Michael Kong. He has a unique combination of expertise that includes stints as a founder, C.T.O., and Director in past businesses. He has been involved with Blockchain since 2016.

On the other hand, Andre Cronje has a cult following in the Defi ecosystem. He was instrumental in popularizing Defi with initiatives such as yearn finance and keep3r finance.

Fantom’s Tokenomics

Fantom’s $FTM Token is currently valued at USD 1.27. There are 3.175 billion $FTM in total supply. There are now 2.1 billion in circulation, with the remaining held for staking rewards.

You can see how $FTM works in Fantom’s ecosystem in the picture below:

$FTM in fantom ecosystem

Source: Fantom

This means that there will be no large market drops because staking payments are distributed linearly. Currently, there are three different types of $FTM tokens are in circulation: 

  • Opera $FTM: Exists on Fantom’s mainnet Opera Chain.
  • BEP-2: For the Binance Chain network.
  • ERC-20: For the Ethereum network.

To stake or start using the Fantom platform, $FTM holders from other networks can use a bridge service to transfer/swap tokens into native Opera tokens.

On the other hand, $FTM has the below utilities:

  • Securing the network: To participate, validator nodes need to hold a minimum of 3,175,000 $FTM, and stakers need to lock up their $FTM.
  • Payments
  • On-chain governance
  • Network fees

Finally, it’s essential to talk about the $FTMs price prediction that if $FTM stays above this support, we could start seeing a move towards $1.37, $1.49, $1.61, $1.78, and $2.00. If the resistance at $2.00 flips to support, we could start seeing a move towards $2.63, $3.65, and $4.67. Failure to hold the support at $1.22 could lead to a drop towards $0.98. You can see this in the picture below:

$FTM price prediction

Source: Altcoin Buzz

Fantom’s Ecosystem

In Fantom’s Blockchain, you will be able to find staking, a decentralized DeFi hub, and a dApp ecosystem where developers can launch their initiatives. Take a deeper look at each of them.

1. Fantom’s Staking

By staking $FTM, you may earn up to 13% APY if you choose to lock $FTM for a year. However, If you do not lock your FTM, you will earn about 4% APY. The staking payouts vary according to the period.

staking fantom

Source: Fantom

Also, you can mint $sFTM tokens if you lock your staked $FTM pegged to 1:1. $sFTM is a synthetic asset which you can use within the Fantom DeFi ecosystem.

2. Fantom Finance

Fantom has its own DeFi Hub that is decentralized. It is a complete DeFi package. Directly from your wallet, you may mint, trade, lend, and borrow digital assets. It’s much faster, cheaper, and more reliable and secure than its predecessors.

Here you can find the most critical use cases:

  • Use your staked FTM as collateral for DeFi. 
  • fMint allows you to mint dozens of synthetic assets.
  • Lend and borrow digital assets through fLend.
  • fTrade is a decentralized exchange that allows you to Trade Fantom-based digital assets without leaving your wallet. (not live yet)

3. dApp Ecosystem

Did you know that the T.V.L. (total value locked) in Fantom has made almost 4x in the past month? As of today, Fantom has approximately USD 2 billion locked in its ecosystem.

Fantom dApp ecosystem

Source: Fantom

The official Fantom portal lists about 54 dApps today in various categories, including DeFi, N.F.T.s, Platforms, Wallets, etc. Some famous names in Fantom Ecosystem include Curve Finance, C.R.E.A.M., Sushi, Zapper, etc.

Fantom’s Competitors

Fantom is a Baselayer Blockchain. As a result, it competes with the top blockchains in the industry, including Ethereum, Cardano, Polkadot, Solana, Avalanche, and others.

However, we believe that the scope is so vast that each of these blockchains will develop by themselves. Let’s take a look at how Fantom compares to some of its competitors.

blockchain comparison

Source: Twitter

As you can see, the trade-off is that Fantom has only 60 active validators currently and also has not implemented advanced Virtual Machines like WASM. On the other hand, Fantom is presently focusing on adoption, and as it scales up, stability should be the primary priority. 

Also, a report by Coin98 says that on the YTD ROI of popular blockchains, $FTM is only second to Solana at 10,985%. We can now safely say that Fantom has announced its entry as a Tier 1 Blockchain. As a result, people will start seeing Fantom as a safe investment, an alternative to Ethereum or Solana. 

Growth and Longevity

This year, the Fantom Foundation is attracting many investments like, for example, Alameda Research and Blocktower Capital invested USD 35 million and USD 29 million, respectively.

Also, the 370 million $FTM reward program was previously announced by Fantom, where protocol teams will be rewarded based on the total amount of money locked. As a result, there will always be a bonus on the projects to encourage adoption.

Finally, Fantom has made notable partnerships. The key ones include Chainlink and Band Protocol in Oracles, The Graph in Data, Ankr for Infrastructure, Orion for DEX, Coti for Payments, etc. Afghanistan, Pakistan, and Tajikistan have also partnered with Fantom to enter into a blockchain and software pilot program.

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