What is the main driving force behind Fantom’s recent boom?

Currently, the cryptocurrency is entering a bear market as BTC, ETH, and most Layer-1 altcoins have dropped 20-30% from ATH levels. However, Fantom is having price action that goes against this trend. Over the past month, the FTM token has seen a massive spike in price, peaking at $3.15.

Fantom’s performance stats are impressive with the total value locked on the network having grown from over $1 billion last September to $7 billion today.

Phantom

Total TVL on Fantom network | Source: Defi Llama

Fantom Foundation has announced the list of milestones reached by the end of 2021, such as a daily transaction count of 700,000, while the network’s unique addresses continue to grow, surpassing the 1.4 million threshold.

Fantom Foundation’s Liquidity Incentive Program

On August 30, 2021, Fantom Foundation launched a massive 370 million FTM liquidity mining program. Unlike traditional liquidity mining incentive schemes that are geared towards users, FTM liquidity is targeted at Fantom developers, offering them rewards when the protocol with TVL reaches its target.

Fantom’s strategy to incentivize developers to join the network through liquidity providers is part of Fantom’s plan to establish an attractive platform for a thriving dApp ecosystem. This has the effect of motivating Fantom developers to create sustainably profitable products, as opposed to incentivizing liquidity providers to jump from dApp to dApp in pursuit of high returns.

At the time of launch, the total value of the incentive program was about $370 million when FTM’s price was around $1. But now, the program’s valuation has nearly tripled, to almost 1.1 billion USD when the FTM price touches the $2.88 zone.

Phantom

FTM Price Chart | Source: TradingView

Review of 2021

In the first half of 2021, Fantom developers focus their efforts on building a hospitable dApp environment, in partnership with Chainlink, API3, and Band Protocol. The key 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 ramp up infrastructure development in the second half of 2021. In December 2021, Fantom announced support for blockchain infrastructure service provider – Chainstack; Web3 infrastructure provider – Blocknative and open source oracle provider – DIA.

Fantom has also pursued partnerships with government organizations worldwide. These partnerships range from intellectual property recordkeeping (Ukraine) and software development for prisons (Pakistan), central bank digital currency and government infrastructure development. electronics (Tajikistan), to supply chains (Uzbekistan).

A vibrant ecosystem

The Fantom ecosystem hosts a total of 113 protocol projects that have helped Fantom break into the top six as of January 14, 2022, behind Ethereum, Terra, Binance Smart Chain, Avalanche, and Solana, according to DeFi Llama.

Among these are several DeFi blue-chip protocols such as Curve Finance and SushiSwap, as well as other popular dApps such as CREAM Finance, Beefy Finance, and Abracadabra.

Fantom is also slowly taking over the GameFi space. Its liquidity mining campaign in August was later expanded to GameFi projects and welcomed Metaverse-related dApps such as 8BIT World, a game-for-money similar to Decentraland and Sandbox.

Fantom has also invest heavily into the Tankwars Zone, 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 acts as a technical advisor to Fantom, has posted a series of cryptic tweets over the past weeks alluding to an upcoming collaboration with Daniele Sestagalli, the face of Wonderland. , Abracadabra and Popsicle Finance.

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Viet Cuong

Theo CryptoSlate

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