Footprint Analytics: A note on Fantom

Data Source: Footprint Analytics Fantom Dashboard

Don't be cowardly, it's a shuttle! The author can no longer regard this sentence as a golden rule. BTC fell from a high of 68,000 to 34,000, which can be described as a cut in half. It is impossible to buy the bottom, and it took half a guts to make a decision to hold the currency and wait for it to rise. The token market, NFT market transactions, and DeFi TVL are also in a downward trend as a whole, but some public chains are going against the current and their TVL is showing positive growth. For example, Fantom surpassed Binance Smart Chain (BSC) and Terra in one fell swoop.

At present, Fantom’s token purchase threshold is relatively low (the current price is $2.37), and the ecosystem is high (135 Protocols have been deployed, covering many categories such as DEX, Options, Minting, etc.). In January of this year, AC (Andre Cronje), the father of DeFi, announced that its new project Solidly would be integrated on Fantom, which set off an upsurge of attacking Fantom on the entire network. In order not to start impulsively, the author conducted research on Fantom.

Introduction to Fantom

(1) Concept | Consensus Mechanism Innovation Genius

Fantom was launched on December 27, 2019. It is a highly available and easily scalable layer 1 EVM compatible public chain. It is supported by the aBFT (asynchronous Byzantine Fault Tolerance, asynchronous Byzantine Fault Tolerance) consensus algorithm based on DAG (Directed acyclic graph) - Lachesis. It has the following characteristics:

• Low transaction costs. Only about $1 in transaction fees for 10 million transactions.

• Fast Trading. 1-2s to confirm a transaction.

• high throughput. Thousands of transactions can be processed simultaneously per second.

It is worth mentioning that Fantom is the first public chain to use the DAG and aBFT mechanism.

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Footprint Analytics - Platforms Per Category by Chains

Secondly, in addition to the 135 projects that have been deployed, Fantom officially established the Fantom Fund to stimulate the development of projects on the chain. In August 2021, Fantom announced that it would invest 370 million FTMs to support ecological development.

In addition to the ecological development of the project, another point that needs attention is the financing situation of the project. The financing round and amount can often tell whether the project is accepted by the market. As the saying goes, leaning against a big tree is good for enjoying the shade, and following VC to choose projects, the fault tolerance rate is relatively high. Fantom has completed five strategic financings so far, and has received more than US$100 million in investment from top VCs such as Alameda Research.

The Rise of Fantom

In terms of design and problem solving, Fantom is clearly outstanding. But the dusty pearl Haihai, whether Fantom has market value. We analyze from the data collected by Footprint Analytics.

Looking at the overall data growth first, the author found that Fantom is like a wild beast, soaring all the way to the Top position of the public chain.

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Footprint Analytics - TVL Category Share of Fantom

Specifically, in terms of time dimension, the accumulation of Fantom TVL has two main outbreak periods.

• The first stage: In the period from September 21 to October 11, 2021, the increase is 856.5%, reaching 10.24 billion US dollars, surpassing Tron, Avalanche, and Terra to become the fourth public chain, after Ethereum, BSC, and Solana . Cause of the outbreak: AnySwap and Geist Finance are the main reasons for the outbreak. Among them, AnyAwap has taken advantage of the public chain competition and the increase in demand for chain bridges, contributing about 43% of TVL to Fantom. Geist Finance, as a Lending project similar to AAVE that has just launched, its staking has attracted a large amount of funds with an APY of 14,580% , locking in a TVL of 34% for Fantom. In addition, AC announced the migration of Yearn Finance to Fantom, which also gave players confidence and incentives to enter Fantom's DeFi project, which is also a shareholder of this Fantom outbreak.

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Footprint Analytics - TVL of Fantom

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Footprint Analytics - Trading Volume & Price of FTM

Reflections on the current problems of Fantom

(1) Excessive reliance on celebrity blessings

Looking back on the development of Fantom, AC has been behind every outbreak since its launch. It can be said that AC's celebrity effect has added Buff to Fantom all the way. It is well known that AC loves Fantom, but what needs to be guarded is that "man's mouth is a deceitful ghost." If AC has a more preferred public chain, the development of Fantom must have its own catalyst.

(2) Insufficient ecological new capacity

The performance of Fantom data is indeed strong, and the ecology is relatively complete. But if you look closely, you will find that there are not many new projects on Fantom. It's definitely not that the current projects don't help Fantom's TVL, but that there is a sense of peace and love between projects without the sense of competition. Any project ecology needs a steady stream of fresh blood in order to maintain continuous development and growth. Fantom needs to think about how to attract new DeFi protocols?

(3) The number of verifiers is small

Solana has 1,000 validator nodes (Validator Nodes), Terra has 100, and Fantom has only 50. There are relatively few among the mature public chains of Top. Insufficient verifiers will lead to relatively low global, leaderless, and trustless public chains. This in turn leads to insufficient decentralization of the public chain, which will be relatively less attractive to DeFi protocols, thus affecting TVL. Fantom needs to add validators.

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About Footprint Analytics:

Footprint Analytics is a one-stop visual blockchain data analysis platform. Footprint assisted in solving the problem of data cleaning and integration on the chain, allowing users to enjoy the zero-threshold blockchain data analysis experience for free. Provide more than a thousand tabulation templates and a drag-and-drop drawing experience, anyone can create their own personalized data chart within 10 seconds, easily gain insight into the data on the chain, and understand the story behind the data.

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The above content is only a personal opinion, for reference and communication only, and does not constitute investment advice. If there are obvious understanding or data errors, feedback is welcome.

Copyright Notice:

This work is original by the author, please indicate the source for reprinting. Commercial reprinting needs to be authorized by the author, and those who reprint, extract or use other methods without authorization will be investigated for relevant legal responsibilities.