October 25, 2022

Fantom Overview | What Is The Potential Of Fantom Blockchain

Dive into Fantom, a rising star in the crypto market, and explore FTM crypto's potential from a financial perspective. Get insights on the Fantom blockchain.

The crypto market features thousands of different assets, which may be overwhelming for beginning investors. It may be hard to wrap your brains around numerous factors and make smart trading and investment decisions without professional advice.

This article throws light on Fantom, a promising asset that has been shining lately. We are going to focus primarily on the financial aspect and determine the potential of the asset from this angle.

Fantom – what is an FTM crypto?

Fantom (FTM) is the asset that fuels an open-source permissionless smart contract platform with the same name, designed for dApps’ creation. It is based on the Ethereum-compatible Layer 1 blockchain.

A Seoul-based company that stands behind the project was founded in 2018 by Dr. Ahn Byung Ik, a South Korea-based computer scientist. The platform provides a whole ecosystem that includes such products as network explorer, Fantom bridge, Fantom wallet, and others. Michael Kong holds the position of CEO. Another notable member of the Fantom team is Andre Cronje, a Yearn Finance developer, and a famous DeFi architect.

The facility running on the Fantom blockchain has robust infrastructure. It features good scalability, high transaction speed, excellent security, and decentralization.

What is unique about the platform is that its mainnet uses the Lachesis, a new consensus mechanism that the project team has built from scratch. It helps to complete transactions within 2 seconds and improve the existing PoS (proof-of-stake) consensus. The platform employs aBFT (Asynchronous Byzantine Fault Tolerant) PoS structure that assures security and high-speed performance simultaneously.

Fantom (FTM) – a quick overview

Launch date: December 2019
Founders: Dr. Ahn Byung Ik.
Blockchain protocol: Directed acyclic Graph (DAG) technology for Fantom
Token standards: Opera mainnet, BEP-2, ERC-20
Ticker: FTM
All time high: $3.48 USD
Trading volume: 70M FTM
Market cap: 3,17B FTM
Circulating Supply: 2.55B FTM

How to stake Fantom (FTM)

Staking FTM tokens not only helps to secure the Fantom network. Token holders can also make passive income with its help. For staking one should have at least 1 FTM at hand.

The procedure is very simple. Users don’t need any particular hardware as they can stake FTM on any device. APR (Annual Percentage rate) depends on the staked amount and locking period that varies from two weeks to a year. It is possible to choose the reward rate with respect to the amount and the length of the staking period. The highest APY is 6%. Alternatively, one can stake FTM without lock-up at 1.8% APY.

Here’s a simple guide on how to stake Fantom tokens:

Go to an official Fantom staking page and click on the ‘Stake’ button.
Log in via any compatible wallet such as Metamask and click on Staking.
Select the delegator and the amount you want to stake. When choosing validators, pay attention to their activity on social media. Do your own research to find a reputable option.
Select the lock-up period and confirm the transaction. Note that you can stake FTM for 2 weeks as a minimum.

Fantom (FTM) – what features make it unique?

Based on an extraordinary framework, Fantom is a good alternative to Ethereum. It presents a smart contract platform for dApps and digital assets. The project team has developed comprehensive functionality for the integration of dApps and built-in DeFi tools. Also, it’s possible to use FTM for staking and fee collection.

The main benefit of the platform is the efficient processing of transactions. The system can handle thousands of transactions per second at a minimal fee, which is often lower than a cent. It provides high scalability at a low cost, thus addressing problems inherent to Bitcoin and Ethereum. In other words, it resolves a trilemma issue by providing high scalability, security, and speed at the same time.

The compatibility of the blockchain with Ethereum has helped the ecosystem to grow fast within a short period of time. The table below compares the key features of these two blockchains.

Comparison of Ethereum vs Fantom

EthereumFantomTypeOpen-sourceOpen-sourceTechnologySmart contractsSmart contracts, DAG, TxFlowType of tokenUtilityUtility, governanceOperational modelIncludes Value Model, Economic Model, Blockchain Model, and Distribution ModelIncludes 2 main divisions Fantom Opera mainnet and Fantom-Blockchain as a ServiceNumber of projectsOver 3,000 dApps Over 300 dAppsTransaction speed12-60 seconds2 secondsProtocolEthereumFantomUsage goalsTo host dApps and cryptocurrenciesTo provide faster, cheaper transactionsConsensusProof-of-stakeMultilayer DPoS (Delegated Proof-of-Stake),

Lachesis (aBFT consensus algorithm)

FTMScan states that the number of Fantom blockchain transactions reached 413.45 million. According to Bitquery, the number of unique smart contracts in 2022 exceeded 9,230,000.

At the time of writing, the platform has concluded over 5 million unique smart contracts. The system processes about 500K transactions daily. With absolute finality provided by the protocol, it is impossible to reverse transactions. Thus, the system features institutional-grade security, protecting users from fraud.

Historical analysis of Fantom (FTM) crypto

FTM is not a utility token only, but a governance token of the underlying network. The platform relies on DAG smart contracts to solve problems inherent to other blockchains. At this, the asset should not compromise security, scalability, and decentralization.

The team has managed to create an extraordinary framework that easily adapts to changes. Understanding that security is of utmost importance, Fantom developers remove vulnerabilities to prevent hacker attacks and protect the network. Many talented and well-known venturers support the system with eight-figure investments, thus increasing the popularity of its native coin.

The all-time high that FTM has reached so far equals 3.30 USD. The coin reached this threshold on January 17th, 2022. At the time of writing, the price of FTM is around 30% lower due to the volatility of the market. The current circulating supply is 2,545,006,273 FTM.

In trying to predict the future price of the token, professionals recommend considering other aspects as well. For example, the company has launched an impressive incentive program worth 370 million FTM that urges developers to build unique products on the basis of the Fantom platform. The system incentivizes its members to apply a creative approach instead of looking for ways of obtaining parasitic liquidity and exiting the project afterward.

Fantom tries to follow trends and present state-of-the-art solutions. For this reason, it closely works with its partners such as the University of Sidney and Yonsei University. At his, it relies on research papers of the best minds in its work.

Fantom (FTM) price prediction

Experts from DigitalCoinPrice and Capital.com predict a slight rise in the token price. It is going to be moderate in the near future in comparison with its current state. In the conditions of a bullish trend, the price can reach 0.40 USD.

The long-term perspectives are more bright. We may wait for exponential growth in the coming decade thanks to the overall growth of the ecosystem. In the opinion of Walletinvestor, it is better to choose a long-term strategy for investing. A short-term strategy doesn’t work well for this asset at the current moment in time. Besides, Walletinvestor states that there could be dark times ahead for this coin.

FTM has many followers and reviewers on social media. There is much positive and optimistic information about the token that results in more stable token prices.

Can Fantom reach $100 – what do experts say?

Experts have different views on the future price of Fantom (FTM). The upward trend is noted, for instance, by CryptoNewsZ. Analytics predicts that the average price of the token is going to be 5.1 USD by 2026. Some say that the token can reach 12 USD by 2026. Taking into account that the platform always tries to implement new technologies, it can certainly reach 100 USD at some point in the future. However, one should not expect it to happen too soon.

FAQ

How high can Fantom reach?

According to the forecasts, Fantom can exceed 100 dollars in the web 3.0 market but it won’t happen in the nearest years. The most optimistic forecast states that the coin may reach $20 in 4 years. The technology behind the protocol makes it one of the favored digital assets among crypto enthusiasts.

Is Fantom a good long-term investment?

Fantom has all the chances to become a rewarding long-term investment. Experts say that Fantom can even dominate in the DeFi market of the future along with such blockchains as Solana and Ethereum.

Is Fantom an Ethereum killer?

The founders of Fantom prefer to call FTM an Ethereum helper. It is impossible to kill the platform with years of development and a vast developer community, in their opinion. It is enough to say that 99% of dApps are Ethereum-based products.

Moreover, the FTM team thinks that there is no sense in killing Ethereum as a whole. The platforms should get together to help each other scale by sharing the load of users. Joint work can improve global decentralized infrastructure and accommodate a larger customer base. The potential is huge since only 1% of the world population uses crypto at the time of writing.

How to buy Fantom on Metamask?

Users have to install the MetaMask extension to buy FTM coins. Fantom is EVM-compatible, so the wallet offers the quickest way to purchase the asset. For that, add the Fantom network in Metamask. Tap “Ethereum Main Network” and then click on the button “Add the network” in a new menu. Select “Custom networks” and specify the following details:

The network name: Fantom Opera
RPC URL –https://rpc.ankr.com/fantom/
Chain ID – 250
Token symbol – FTM
Block explorer URL:https://ftmscan.com/

How to stake Fantom?

Stakers have to provide access to the Fantom wallet and deposit their FTM, transferring tokens from the exchange to their Opera address. The final step is the choice of the validator and the terms. A more detailed guide can be found on the official website of the project.