Fantom (FTM) is an attention-grabbing blockchain project in crypto space for its unique features and potential. Despite the recent decline in key metrics such as Total Value Locked (TVL), the project has something special that many believe deserves attention.
Is Fantom ready to disrupt the crypto world?
One of the most important metrics for any blockchain project is TVL, which represents the amount of money invested or held in the network. according For Fantom, a data researcher at Dune Analytics under the pseudonym “OxFinish,” TVL experienced a massive bull run in the fall of 2021 during Bitcoin’s second all-time high (ATH) but has since fallen to its lowest point in what Almost two years in, and it’s currently worth nearly $292 million.
Interestingly, TVL correlates perfectly with the market capitalization of Stablecoin, and is the easiest thing to correlate among the two blockchains, as shown in the chart above.
Moreover, according to Ox, the price of the FTM is closely correlated with active users, as evidenced by the recent “Altcoin season” mini-surges in network activity when the price surged. Social dominance and US dollar transaction volume also decreased, indicating the complex interdependence of key metrics within the ecosystem.
The rising star of Fantom’s DeFi ecosystem
Despite the above, Fantom has a vibrant ecosystem of projects built upon it, with one decentralized exchange (DEX) standing out as the backbone of the network: SpookySwap. SpookySwap currently has over 22% TVL dominance, with GMX on the Arb only having a slightly higher percentage of around 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 the tokens based on supply and demand. This approach makes it easy for users to trade tokens quickly and efficiently while ensuring price stability.
Moreover, SpookySwap offers a host 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 users with a smooth and efficient trading experience. In addition, it offers a range of advanced features such as limit orders, liquidity saving incentives, and a range of trading pairs.
Despite the departure of Andre Cronje, creator of Fantom, the Fantom ecosystem continues to grow and innovate, with SpookySwap at the forefront. However, the emergence of various Layer 2 (L2) solutions in the crypto space provides similar advantages to Fantom, making it more difficult to attract and retain users.
However, according to Ox, given recent metrics and innovations, there’s still plenty 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.
Featured image from Unsplash, chart from TradingView.com
