As the fourth quarter of 2023 unfolded, the cryptocurrency landscape was abuzz with renewed vigor, largely fueled by the exciting prospect of an imminent Bitcoin ETF greenlight. Amidst this backdrop of burgeoning optimism, Fantom (FTM), a Layer-1 protocol established in 2018, began making headlines. A recent examination by Messari illuminated this platform’s remarkable ascent: Its circulating market cap rocketed 140% quarter-over-quarter, ballooning from a modest $0.5 billion to a formidable $1.3 billion.
Fantom’s stellar performance notably outshone the growth of the aggregate cryptocurrencies’ market cap, which itself saw a respectable 54% increase in that same period. FTM’s impressive market trajectory witnessed a swift rise through the ranks, as it climbed five notches, from 63 to a more impressive 58, in the market cap standings by quarter’s end.
As factors like circulating supply remained fairly constant, it was the strategic initiatives such as the Ecosystem Vault and Gas Monetization program introduced during the quarter that played a role in reducing transaction fee burn rates and reorienting fee allocations to bolster Fantom’s financial engineering ecosystem.
The network’s engagement, gauged by daily active addresses, dipped by 27% over the quarter, averaging 32,700. However, the gradual uplift in daily active users as December approached painted a promising picture for Fantom’s expansion trajectory. Transactions too, previously on a downturn, experienced a resurgence, soaring by 126% to 531,000 daily. This was attributed chiefly to the introduction of Fantom Inscription FRC20s, with November 25 marking a day of 5.11 million transactions, propelled by 4.99 million inscriptions.
In the realm of network growth, Fantom saw a 10% increase in new daily addresses, averaging 21,100. This influx was seemingly spurred by the advent of Estfor Kingdom, a blockchain game that captured the user base’s imagination. By the close of the quarter, December’s figures also suggested an uptick influenced by the revitalizing market conditions.
The DeFi domain within Fantom, too, witnessed considerable flux. The Total Value Locked (TVL), when measured in USD, jumped 58%, from $51 million in Q3 to an impressive $81 million by the end of Q4. Despite this, when denominated in FTM, TVL saw a 29% decline, a testament to the volatility inherent in asset prices. The landscape of dominant DeFi applications saw new contenders like Equalizer Exchange, WigoSwap, and SpiritSwap rise, diversifying the ecosystem and contributing to nearly all of the quarter’s TVL growth, with Equalizer and WigoSwap leading the pack in terms of market share increases.
Even with a 10% decrease in the average daily decentralized exchange (DEX) volume to $10.2 million in the fourth quarter, new entrants like Equalizer Exchange and WigoSwap were pivotal to the ecosystem’s resilience and incremental growth.
In summation, Fantom’s showing in the latter part of 2023 was nothing short of commendable. The platform not only saw an explosion in market capitalization but also evidenced robust revenue streams and an expanding foray into decentralized finance. However, it was not immune to the market’s vicissitudes; the native token, FTM, underlined this volatility, reflecting a notable depreciation in value.
Despite a marked retreat across the wider cryptocurrency market, Fantom’s FTM token has mirrored this downturn. The current trading price hovers at $0.3306, trailing a 3% dip within the last day, a steeper 37% over the past month, and culminating in an 18% reduction year-to-date.
