Coin Spotlight
18 Jan 2022

Fantom (FTM) in Spotlight

Deepan Datta

While DeFi space is on a hot streak and many innovative crypto projects are coming up related to DeFi, and Web 3.0, the demand for versatile blockchain platforms with unparalleled scalability, security, and decentralisation is increasing compared to any legacy layer 1 blockchain protocols. 

In this edition of Coin Spotlight, we will be discussing Fantom. A crypto project that is smartly filling up the gap where legacy layer 1 smart contracts platforms are struggling. 

Its native token, FTM, has been one of the top performers in the market, quickly making its way to the top 30 cryptos by market capitalisation. In the last 12 months, its price has increased from $0.0237 (₹1.87) to $3.48 (274.92), increasing over 14,000% in such a short duration. 

Key Token Metrics

  • Coin rank: #26
  • Coin market capitalisation (as of 17th Jan 2022): $8.25 billion
  • Coin market dominance: 0.4%
  • Coin economics: Fixed supply
  • Total Coin supply: 3.175 billion FTM
  • Circulating supply: 2.55 billion FTM 

Technical Analysis: FTM Price Analysis

Fantom
source: tradingview.com

On the daily charts, FTM has broken above one of its key resistance levels- $3.16 (₹249.64) but is experiencing a bit of selling pressure on the top. It needs to be seen how the market moves from here. RSI’s overbought position indicates a weakness in the short term. 

If it breaks below the $3.16 (₹249.64) level, it may move down to the $2.59 (₹204.61) level to test support, which coincides with the 50 day EMA level. 

By keeping a close eye on the Bolling band and 50 Day EMA level, we may get some clue on FTM’s future price momentum. 

Disclaimer: Insights and Data mentioned are Time Sensitive. Kindly DYOR to stay safe.

A Brief About Fantom

Fantom is a highly scalable open-source smart contract platform for creating dApps and digital assets. It has positioned itself as an alternative to Ethereum, providing a steady balance of scalability, security, and decentralisation. 

Its mainnet was launched in December 2019 and serve as a multipurpose platform that enables multiple blockchain use cases and solutions. Fantom is known for its near-instantaneous transactions finality time with an average transaction time of one second, extremely low fees, and highly scalable network with the ability to process thousands of transactions per second.

Another major feature of Fantom is, it is EVM compatible, meaning developers can easily deploy and run Etheruem dApps on Fantom. Also, dApps built on Fantom can be designed to make it interoperable with Ethereum blockchain while maintaining all the transactional efficiency of Fantom. 

How Fantom Ensures Higher Transactional Efficiency?

Fantom is a proof-of-stake smart contract platform that uses Lachesis’s leaderless PoS consensus mechanism.

Lachesis is an asynchronous byzantine fault tolerance (aBFT) consensus mechanism that ensures transactional speed and security, even if one-third of the participants (node) engages in faulty activities. 

In legacy smart contract platforms, dApps depend on the same infrastructure used by thousands of other dApps, which slows down the system and results in higher transactional costs. Whereas, on Fantom, each application has its own blockchain and works independently from other’s applications. Each application can have its own custom token, token economics, governance, etc. 

With all applications connected to Lachesis, Fantom’s innovative uber-fast consensus mechanism, all blockchains can interact with each other without compromising security, scalability, and speed. 

FTM Coin Economics

FTM is the native token of Fantom and is used for staking, paying transaction fees, payments, and governance. 

The total supply of FTM tokens is fixed at 3.175 billion, of which 2.55 billion FTM (80% of total supply) coins are in circulation. The remaining coins will be released as staking rewards. If any stakers/validators are involved in any malicious activity, the protocol seizes their staked FTM coins and burns them. 

For stakers, Fantom has a highly lucrative staking reward structure. Users staking their FTM tokens at will with a validator node are entitled to a 4% annual percentage yield (APY) staking reward, applicable to all stakers. 

Also, stakers can take advantage of Fantom’s Fluid Rewards by locking their FTM tokens for a pre-determined period- ranging from two weeks to up to 12 months. In this structure, stakers can earn up to 12% APY reward rates. 

Fantom Future Growth Potential

Fantom has grown rapidly in the past two years by removing the bottlenecks in the blockchain ecosystem like scalability, decentralisation, and security. It wants to become a key enabler in the growth of a decentralised ecosystem, primarily the DeFi landscape. 

On Fantom mainnet, more than 100 dApps are deployed with total FTM tokens locked in the platform has exceeded 3.42 billion, worth over $10 billion. 

source: defillama.com

Fantom is an advantageous platform for users and developers, ticks all the boxes, from lucrative monetary incentives to flexible platform architecture. And, with growth expected to continue in DeFi and Web 3.0 landscape in 2022, Fantom will be benefitted directly from it. 

Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.

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Deepan Datta

Content Writer

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