As an analyst with extensive experience in the cryptocurrency market, I’ve closely monitored the remarkable performance of Fantom (FTM) and its native token during Q1 2024. Based on my analysis of the data provided by Messari, it’s clear that Fantom has been a major beneficiary of the emerging crypto bull market.
In the opening quarter of 2024, Fantom (Fantom Operated Token), a foundational blockchain protocol, along with its native currency token, FTM, have registered considerable growth and impressive milestones.
As a data analyst, I’ve conducted a thorough performance assessment using Messari’s comprehensive dataset. In the midst of the burgeoning cryptocurrency bull run, Fantom has stood out as one of the notable gainers. Its essential metrics have demonstrated substantial expansion, and its market capitalization has experienced noteworthy growth.
FTM Market Cap Soars 101% QoQ
In simple terms, the market capitalization of FTM tokens grew significantly by 101% between quarters, rising from $1.3 billion to $2.6 billion. This surge propelled FTM up ten places in the token rankings, now at 48th position (previously 58th). The price rise continued for two successive quarters, leading to a fourfold increase since Q3 2023’s end.
Despite a significant 53% drop in Fantom’s quarter-over-quarter revenue, equivalent to 1.8 million FTM, the revenue calculated in US dollars displayed a modest 4% rise, totaling approximately $1.2 million.
I, as an analyst, would interpret Messari’s findings as indicating that the decrease in revenue can be largely attributed to diminished activity related to contract inscriptions on all smart platform networks during the first quarter.
In spite of this setback, Fantom managed to register a rise in its daily average transactions, disregarding inscription-related actions, which went beyond the Q3 benchmark and reached approximately 247,000 transactions per day. Additionally, the number of daily active addresses bounced back by around 24% quarter over quarter, reaching 40,500.
As a researcher studying the Fantom network, I’ve observed an adjustment made in the first quarter to the staking requirement for validators. Previously set at 500,000 FTM, it was substantially decreased to 50,000 FTM. This reduction aimed to make the validation process more accessible to a larger pool of potential validators. Despite this change, the number of active validators in the network has remained constant at 55.
As a crypto investor, I’ve observed an impressive growth in the amount and value of Fantom (FTM) tokens staked on the network. Specifically, the total staked FTM increased by approximately 17% quarter-over-quarter (QoQ), rising from 1.1 billion to a staggering 1.3 billion FTM. This expansion led to an impressive surge in the total dollar value of staked FTM, jumping by around 135% QoQ and hitting a significant milestone of $1.2 billion. Among all proof-of-stake (PoS) networks, Fantom ranked 22nd with respect to the amount of funds staked by the close of Q1.
Memecoin Mania Boosts Fantom On-Chain Activity
In the initial quarter of the year, the Total Value Locked (TVL), measured in US dollars, underwent a significant surge, jumping by 59% compared to the previous quarter. The TVL amounted to $810.8 million in Q4 but grew to an impressive $1.28 billion.
In contrast, the TVL represented in FTM declined by 21% quarter over quarter. This decrease suggests that a significant portion of the increase in USD-denominated TVL can be attributed to FTM’s price growth.
The daily trading volume at Fantom’s decentralized exchanges experienced a significant increase of 64% compared to the previous quarter, rising from $10.2 million to approximately $176.8 million. In the first quarter alone, the “Memecoin Mania” trend fueled heightened on-chain activity not just on Fantom but also across other networks.
In March 2023, Fantom’s monthly decentralized exchange (DEX) trading volume exceeded the $1 billion mark for the first time since that period. Additionally, the count of active DEXs on Fantom reached 31 by the conclusion of the first quarter, and no individual DEX held more than a 30% share of the market.
To address the issue caused by a security vulnerability in the Multichain: Fantom Bridge that impacted stablecoins on Fantom during Q3 2023, the Fantom Foundation implemented measures to bolster the availability of stablecoin reserves.
In my analysis as of Q1 2024, two distinct third-party bridging solutions, Axelar (with axlUSDC and axlUSDT) and LayerZero (offering lzUSDC and lzUSDT), have come to light in the Fantom ecosystem. USDC holds a dominant position in this space, accounting for an impressive 98% of the stablecoin market capitalization. Notably, USDT has also seen significant expansion, marking an 86% increase quarter-over-quarter.
The price of FTM is presently at $0.7037, marking an uptick of 8.7% within the last week. On the other hand, it has shown a nearly 20% decrease over the past month.
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2024-05-08 03:05