Fantom: Though DeFi-friendly measures show results, FTM remains in limbo
- The total transaction fees collected in the last week were the highest since November.
- Despite the promising growth in transactions, network growth dipped 74% over the previous month.
Fantom’s [FTM] recent attempts at making the network more conducive for deployment of dApps have started to show results. As per a 10 April tweet, the layer-1 blockchain recorded its six-month high in transaction fees collected.
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$FTM just experienced the largest spike in generated fees in over six months.
Few people understand how much Fantom has going for it. pic.twitter.com/KZ0gQ4fKn1
— Emperor Osmo🧪 (@Flowslikeosmo) April 10, 2023
At nearly $180k, the cumulative value of fees collected in the last week was the highest since November, reflecting the growing trading activity on the platform.
The impact of this rise was visible on the price trajectory of native token, FTM, which gained over 8% in the last week, per CoinMarketCap.
Read Fantom’s [FTM] Price Prediction 2023-24
A major push behind the growth in transactions could be coming from Fantom’s decentralized finance (DeFi) ecosystem. As per data from DeFiLlama, the largest decentralized exchange (DEX) on the chain, SpookySwap, registered a total value locked (TVL) growth of over 8% in the last 30 days.
Equalizer Exchange, which had a contribution of over 8% to Fantom’s TVL, was another success story. Over the last week, the DEX grew by over 18% while its monthly expansion rate stood at 32.44% at press time. Equalizer’s twin-AMM design unites StableSwap pools with Standard ‘kxy’ liquidity pools.
The layer-1 blockchain has undertaken important steps of late to entice users and projects.
To add another layer of security to the DeFi transactions, Fantom integrated the Web3 defense suite of the crypto security company De.Fi last week. With incidents of hacks continuously rising on DeFi platforms, the added measure could have spurred transactions on the platform.
Before that, Fantom announced the launch of its Ecosystem Vault, which was intended to support builders by providing a decentralized channel for funding projects and ideas. As of this writing, the vault held 290,000 FTM tokens.
The past 2 weeks at Fantom!
🔹#Fantom Ecosystem Vault hits major milestone, now holds 290,000 $FTM
🔹@DedotFi introduces the first Web3 Defense Suite, deploys on Fantom
🔹@CryptoTaxHQ is covered by #FantomEdge on the @VerticalBlocks YT page
& more! 👇https://t.co/5iBGyE3i5a pic.twitter.com/OTQLaaREMT
— Fantom Foundation (@FantomFDN) April 10, 2023
Realistic or not, here’s FTM market cap in BTC’s terms
Fantom: Network growth, dev activity trigger concerns
Despite the promising growth in transactions, the network growth dipped 74% over the previous month, sparking concerns about user adoption. The 30-day MVRV Ratio moved in the positive territory, signifying that holders could realize profits if they were to sell their FTM tokens.
FTM’s price action and growth of its DeFi landscape filled investors with optimism as the weighted sentiment continued to stay positive. However, the concerning factor was the considerable drop in development activity, which could delay important upgrades in the days to come. Since 15 March, the metric has gone downhill, with no signs of recovery.