In the midst of the bull market since the beginning of the month, Fantom (FTM) has also performed very well in the DeFi and Spot sectors. It’s even better than the top coins like BTC and ETH. The week went so well for investors that even the most uninformed had to discuss FTM.
However, being popular and profitable are 2 different things.
TVL increase horse
Fantom has broken records in the past few days. In fact, after 8th place in terms of Total Value Locked (TVL) in DeFi, Fantom is now the 4th largest blockchain. In just a few days, it has pushed back “heavyweight” blockchains like Polygon, Terra and Avalanche regardless of any of these blockchains has been doing well lately.
On October 6, Fantom’s TVL was $ 2.4 billion, a number in line with the previous steady increase. In the next 48 hours, TVL rose $ 7 billion to hit $ 9.01 billion at press time.
TVL in DeFi of Fantom | The source: DeFiLama
But that’s not all. Fantom has had more than 30 protocols since its inception. Even so, the network’s numerous ecosystem-focused partnerships and updates over the past 6 months have resulted in an increase in total TVL of 16,853,800%.
Motivational causes growth
While there is no clear reason for the network’s success, the potential cause is the growth of NFTs. Some protocols like Anyswap, NFT PaintSwap and Shiba Fantom have also grown significantly by 235%, 91% and 155%, respectively.
Additionally, the network’s FTM token price is up 87.3% for the week. In contrast, Bitcoin and ETH are only up 24% and 20%, respectively.
FTM price table | The source: TradingView
In addition, the network already has a stable participation rate and a positive inflow of capital. More than 35.1% of the addresses have a credit in the network. As the network promises to solve the “agnostic trinity” of decentralization, scalability and security, Nansen CEO Alex Svanevik recently said:
“I can’t wait to see what happens next.”
BeFantom’s address | Source: Intotheblock
However, the current volatility of the network combined with the Relative Strength Index (RSI) in the overbought zone suggests that an unexpected drop in prices could be expected.
CLEARFluctuations from FTM | Source: Intotheblock
Hence, new investors should be careful when participating. Remember what happened to SHIB yesterday: down 18% in one day after gaining 253% in the week. While there is no guarantee that meme coins and altcoins will work the same, it is best to be careful about assets that want to surprise the market.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
At home at home
According to AMBCrypto