What is the driving force behind Fantom’s recent boom?
Currently, the cryptocurrency is entering a bear market as BTC, ETH, and most layer 1 altcoins are down 20-30% from the ATH level. However, Fantom has price promotions that go against this trend. Over the past month, the FTM token has seen a massive price surge, peaking at $3.15.
Fantom’s performance stats are impressive as the total value of the network has grown from over $1 billion last September to $7 billion today.
Overall TVL on the Fantom Network | Source: Defi Llama
Fantom Foundation has announced the list of milestones achieved by the end of 2021, such as B. a daily transaction count of 700,000, while the unique addresses of the network continue to grow and surpass the threshold of 1.4 million.
The Fantom Foundation’s Liquidity Incentive Program
On August 30, 2021, the Fantom Foundation launched a massive 370 million FTM liquidity mining program. Unlike traditional liquidity mining incentive schemes that are user-focused, FTM Liquidity targets Fantom developers and offers them rewards when the protocol hits its target with TVL.
Fantom’s strategy of incentivizing developers to join the network through liquidity providers is part of Fantom’s plan to create an attractive platform for a thriving dApp ecosystem. This has the effect of incentivizing Fantom developers to create sustainable profitable products, rather than incentivizing liquidity providers to jump from dApp to dApp to achieve high returns.
At the time of launch, the total value of the incentive program was about $370 million when the price of FTM was around $1, but now the program’s valuation has almost tripled, to almost $1.1 billion Dollar when the price of FTM touched the $2.88 area.
FTM Price Chart | Source: TradingView
Looking back at 2021
In the first half of 2021, Fantom developers will focus on building a hospitable dApp environment in partnership with Chainlink, API3 and Band Protocol. The most important update, Go-Opera, was successfully rolled out in April, allowing the Fantom network to achieve an average transaction processing time of 1 second.
The network continues to drive infrastructure development in the second half of 2021. In December 2021, Fantom announced support for blockchain infrastructure service provider – Chainstack; Web3 Infrastructure Provider – Block Native and Open Source Oracle Provider – DIA.
Fantom has also established partnerships with governmental organizations worldwide. These partnerships range from intellectual property record keeping (Ukraine) and software development for prisons (Pakistan), central bank digital currency development and government infrastructure, electronics (Tajikistan) to supply chains (Uzbekistan).
A living ecosystem
The Fantom ecosystem is home to a total of 113 protocol projects, according to DeFi Llama, which helped Fantom break into the top 6 on January 14, 2022, behind Ethereum, Terra, Binance Smart Chain, Avalanche, and Solana.
Among them are several DeFi blue-chip protocols like Curve Finance and SushiSwap, as well as other popular dApps like CREAM Finance, Beefy Finance, and Abracadabra.
Fantom is slowly taking over the GameFi space as well. Its August liquidity mining campaign later expanded to GameFi projects, embracing Metaverse-related dApps like 8BIT World, a money-making game similar to Decentraland and Sandbox.
Fantom has too invest heavily into the Tankwars zone and showing their commitment to attracting GameFi developers.
The Future of Fantom
There will be many more interesting things that Fantom will bring to users and the community in 2022.
DeFi veteran Andre Cronje, who serves as Fantom’s technical advisor, has posted a series of cryptic tweets over the past few weeks alluding to an upcoming collaboration with Daniele Sestagalli, face of Wonderland, Abracadabra and Popsicle Finance.
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