Fantom

How Fantom and Optimism’s DeFi and DApp development directly affects FTM and OP price action

Despite similar price action, Fantom and Optimism ecosystems are moving in opposite directions and this is reflected in each token’s price.

The price action of Optimism (OP) and Fantom (FTM) tokens have been quite identical since the last quarter of 2022. The difference is that volatility is slightly higher for OP, which surged 240% year-to-date, compared to the 180% gains seen in FTM.

The Fantom Foundation has made several improvements since Q4 2022, which have catalyzed an uptrend in the token’s price. However, Fantom’s ecosystem remains primitive while its competitors expanded to support new use cases.

On the other hand, Optimism has shown robust community and decentralized application (DApp) development thanks to the loyalty of Ethereum developers and the Optimism Foundation’s effective strategy in aligning token incentives with governance.

*OP/USD (orange) and FTM/USD (blue) price chart. Source: TradingView*

Fantom’s ecosystem development stalls

The Fantom ecosystem received an adverse blow in early 2022 due to the departure of leading DeFi architect Andre Cronje. The blockchain’s ecosystem development stalled after Cronje’s departure. At the same time, Fantom’s competitors, like Polygon (MATIC), Cosmos (ATOM), Arbitrum and Optimism, continued to host various popular applications.

Cronje rejoined Fantom development efforts in November, however, it appears it was too late by then. The lack of sustainable yields in a bear market has restricted liquidity inflows to Fantom.

*Fantom TVL over time. Source: DefiLlama*

The Fantom community also aimed to improve the quality of decentralized applications on the blockchain through an ecosystem development fund built by reducing the portion of burnt fees from 20% to 5% in December. While the number of smart contracts created on Fantom has spiked significantly since Q3 2022, the quality of DApps still needs to improve compared to its competitors.

*Number of smart contracts created on Fantom. Source:* *Dune*

The 30-day activity billboard from Nansen shows that top dApp activity on Fantom was limited to simple swaps, which is discouraging as other activities like derivatives trading, social media platforms and NFT trading are prospering on competing chains like Arbitrum, Polygon, and Optimism.

The most used DApps on Fantom between Jan. 20 and Feb. 20 was XEN Crypto, a free mint Ponzi scheme-like application. The application first appeared on Ethereum in October, with a lot of excitement in the first few days of launch. However, the hype subsided after the mint became unprofitable as many users crowded the platform.

*Top Fantom dApps by usage in the last 30 days. Source: Nansen*

Optimism developers find success with new use cases

At the same time, Optimism has successfully attracted liquidity and activity to its ecosystem after launching the Optimism token and accompanying airdrop campaigns. In April, the Optimism team stated there would be a “season of airdrops” and launched an Optimism Quest campaign.

The layer-2 network saw increased usage from users for collecting its nonfungible tokens, which would likely make them eligible for the airdrop. The Quests ended in January, following which there was a steep decline in activity. However, DeFi liquidity remained sticky.

*The total liquidity on Optimism. Source: DefiLlama*

Moreover, the activity on Optimism is quite diverse. The list of most used decentralized applications on Optimism includes yield platform Pool Together, derivatives platforms Synthetix and Perpetual Protocol and leading lending platform Aave.

Optimism also hosts a decentralized blogging platform, Mirror, which allows content writers to issue their articles as NFTs. The platform has gained significant usage, with 2.7 million hits on its website.

*Top Optimism dApps by usage in the last 30 days. Source: Nansen*

On Feb. 24, the largest U.S. exchange, Coinbase, announced its layer-2 blockchain, which uses the same technological design as Optimism. The announcement added that the exchange is closely working with the Optimism Collective with a vision to connect blockchains built on the same technological stack, collectively known as the Optimism ecosystem. This could possibly be the beginning of a big step for Optimism where other businesses follow Coinbase into joining and enhancing Optimism’s liquidity and activity.

Comparing the tokenomics of FTM and OP

One drawback of the Optimism token is that it is only a governance token and doesn’t entitle users to real yields in gas fees. The OP tokens’ supply will inflate at 2% per year, along with investor and team unlocks that begin in April.

However, the Optimism team has incentivized participation in governance, which improves the protocol’s governance and also aligns incentives with its intended use, i.e., higher voter participation.

Optimism’s governance has proved more efficient than competitors like Uniswap (UNI) and Compound (COMP) in promoting decentralization. The layer-2 network’s ecosystem is also expanding by supporting diverse applications. Optimism also stands to benefit from Arbitrum’s native token launch, which will likely add fuel to the layer-2 token narrative, pushing the OP token’s price higher.

For Fantom, despite implementing a burn feature in its protocol, the real yield of the platform is still negative, around -0.93%. The blockchain’s fees and liquidity must improve considerably to enhance the value of FTM. Otherwise, it risks becoming irrelevant alongside many other layer-1 protocols in the market.

Technically, FTM can see more upside while it holds support above $0.38 and target the $0.95 support and resistance area. A breakdown below $0.38 could see it dropping toward $0.19.

*FTM/USD weekly chart. Source: TradingView*

For OP, its price surged above its previous peak of $2.30, which will now act as a support for further upside as it experiences a price discovery. On the flipside, a breakdown below this level could see the token’s price drop toward $1.30.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Fantom’s 5-week winning streak is in danger — Will FTM price lose 35%?

As per technical data, the FTM market has turned overbought after rallying 230% in five weeks, with the coin’s momentum slowing down compared to the price boom.

The price of Fantom (FTM) risks pulling back in February due to a growing divergence between its price and momentum in recent weeks.

FTM price rallies 230% after Cronje’s 2023 roadmap

FTM’s price has grown by 230% in the past five weeks, trading at $0.61 on Feb. 5. The rally came as a part of a broader crypto market recovery but outperformed most top-ranking crypto assets due to the hype created by Andre Cronje.

Cronje is the co-founder and architect of Fantom’s layer-1 blockchain. On Dec. 26, 2022, the developer released a letter discussing the goals and priorities for the Fantom ecosystem in 2023, including his intention to allow decentralized app developers to earn 15% of the network’s revenue.

The FTM price has seen five weeks of gains in a row since Cronje’s letter to the Fantom Foundation team.

*FTM/USD weekly price chart. Source: TradingView*

The FTM/USD pair looks ready to close the week ending Feb. 5 with at least a 25% profit, helped by Cronje’s latest Twitter thread that gives 13 reasons why Fantom will be one of the best layer-1 blockchains in 2023.

Fantom price technicals hint at correction ahead

Nevertheless, FTM’s ongoing rally risks exhaustion due to a growing bearish divergence between its rising price and falling momentum.

On the daily chart, FTM/USD has formed higher highs since mid-January, while its relative strength index (RSI) has made lower highs. As a rule of technical analysis, such a discrepancy means that the upside momentum is slowing.

*FTM/USD daily price chart featuring bearish divergence. Source: TradingView*

In addition, the RSI remains above 70, suggesting FTM is “overbought.“ It also hints about short-term bullish exhaustion and possible sideways or downward price action in the coming days.

FTM risks crashing toward $0.42, or 35% from current price levels, given the level’s recent history as resistance. Moreover, a close below $0.42 would bring FTM’s 200-day exponential moving average (200-day EMA; the blue wave) at $0.38 into view as the next downside target.

*FTM/USD daily price chart. Source: TradingView*

Overall, Fantom maintains its bullish bias as long as it remains above its 200-day EMA and the 50-day EMA (the red wave).

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

LTC, AVAX, APT and FTM prepare to rally as Bitcoin price targets $24K

Bitcoin bulls look to push BTC price to $24,000 and in doing so, LTC, AVAX, APT and FTM could extend their monthly gains.

Bitcoin (BTC) has rallied nearly 40% so far in January, which is the best start to the year since 2013. The sharp up-move has turned several on-chain signals bullish, according to on-chain analyst Cole Garner.

Usually, a sharp recovery from the market lows, driven by the leader, is a sign that strong hands may be buying aggressively. That could be because traders believe the selling may have been overdone in the near term or they found the valuation to be attractive.

*Crypto market data daily view. Source:* *Coin360*

After the initial runup, a swift correction could be expected, which will shake out the weak hands. The next fall will also confirm whether Bitcoin has formed a bottom or not. If the low is confirmed, several altcoins may start to outperform Bitcoin in the near term.

Which altcoins are showing promise in the near term? Let’s study the charts of Bitcoin and select altcoins to see which could extend their up-move in the next few days.

BTC/USDT

Bitcoin has been trading above $22,800 since Jan. 25, which suggests that bulls are trying to flip the level into support.

The upsloping 20-day exponential moving average ($21,558) indicates that bulls are in command but the relative strength index (RSI) in the overbought territory suggests that the rally may be overextended in the near term.

If buyers kick the price above $23,816, the BTC/USDT pair could start its northward march toward $25,211. This level may act as a formidable resistance.

On the downside, the 20-day EMA is an important level for the bulls to defend because if it cracks, the pair may fall to the psychological support at $20,000.

*BTC/USDT 4-hour chart. Source: TradingView*

The RSI on the four-hour chart is forming a negative divergence indicating that the buyers may be losing their grip. If bulls want to assert their dominance, they will have to push the price above the $23,816 resistance. That could start the next leg of the up-move.

Conversely, if the price turns down from the overhead resistance, the bears will try to yank the pair below the moving averages. There is a minor support at $22,715 but if this level collapses, the pair could retest $21,480.

LTC/USDT

Litecoin (LTC) has been in a strong uptrend for the past several days. After a brief consolidation, buyers propelled the price above the overhead resistance of $92, indicating that the up-move remains intact.

The LTC/USDT pair could rally to the psychological level of $100 where the bears may again try to erect a roadblock. If bulls do not give up much ground from this level, the pair may extend its journey to $107. The upsloping 20-day EMA ($86) and the RSI near the overbought territory indicate advantage to buyers.

This positive view could invalidate if the price turns down and slips below the 20-day EMA. The pair could then drop to $81 and later to $75.

*LTC/USDT 4-hour chart. Source: TradingView*

The break and close above the $92 level suggest that the consolidation resolved in favor of the buyers. If bulls sustain the price above $92, the pair could rise toward the pattern target of $98.

The bears are likely to have other plans. They will try to drag the price below the breakout level of $92 and trap the aggressive bulls. If they manage to do that, the pair could fall to $86. This is an important level for the bulls to defend because a break below it could shift the advantage in favor of the bears.

AVAX/USDT

Avalanche (AVAX) surged above the resistance line on Jan. 27 and reached the overhead barrier at $22 on Jan. 28.

The bears are trying to stall the recovery at $22 but the bulls do not seem to be in a hurry to book profits. This increases the likelihood of a break above the overhead hurdle. If that happens, the AVAX/USDT pair could accelerate toward $30. There is a minor resistance at $24 but it is likely to be scaled.

Another possibility is that the price turns down and retests the resistance line. If the price rebounds off this level, it will suggest that the bulls have flipped it into support. That could enhance the prospects of a break above $22. The bears may gain the upper hand if the price dives below the 20-day EMA ($17).

*AVAX/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows the pair has pulled back near the 20-dayEMA. If the price jumps from the current level, the bulls will again attempt to thrust the pair above the overhead obstacle at $22. If this level is scaled, the pair could rally to $24.

The first sign of weakness will be a break and close below the 20-EMA. That could present an opportunity for the bears to make a comeback. The sellers could gain the upper hand if they pull and sustain the pair below the resistance line.

APT/USDT

Aptos (APT) has been having a dream run in the past few days. Usually, when an asset picks up momentum, it continues to move in the same direction for some time.

The APT/USDT pair turned down from $20.40 on Jan. 26 but the bulls are trying to arrest the pullback at $16.62. The shallow correction shows that every minor dip is being purchased by the bulls. Buyers will try to drive the price above $20.40 and start the next leg of the uptrend. The pair could then soar to $24.

The risk to this assumption is that the RSI has been in the overbought territory for the past few days. This increases the risk of a short-term correction. If the price turns down and plummets below $16.60, the pair could slide to $14.57 and then to the 20-day EMA ($12.23).

*APT/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows a negative divergence forming on the RSI. If the price breaks below the 20-EMA, the pair could test the 50-SMA. This is an important support to monitor because if it cracks, the pair could fall to $12.

Contrarily, if the price turns up and breaks above $20.40, it will indicate that bulls have reasserted their supremacy. That may invalidate the negative divergence developing on the RSI and resume the uptrend.

FTM/USDT

Fantom (FTM) has been in a stupendous run since breaking above the downtrend line. The sharp rally of the past few days suggests aggressive buying by the bulls.

The indicators signal that bulls are firmly in control. During strong up-moves, the corrections are short-lived as bulls buy on every minor dip. The bears are trying to stall the up-move near the psychological resistance at $0.50 but if bulls pierce this level, the FTM/USDT pair could soar to $0.56 and then to $0.63.

Sometimes, vertical rallies are followed by sharp declines. Therefore, traders must be careful as a break and close below $0.43 could sink the pair to the 20-day EMA ($0.37). This is the key level to watch out for on the downside because a break below it could signal that the uptrend may have ended in the near term.

*FTM/USDT 4-hour chart. Source: TradingView*

The pair turned down from the overhead resistance at $0.50 but found support at the 20-EMA. This indicates that the sentiment remains positive and traders are buying the dips. The bulls will again attempt to clear the overhead hurdle at $0.50 and resume the up-move.

The bears may have other plans as they will try to pull the price below the 20-EMA. This is an important level to keep an eye on in the short term as a break below it could open the doors for a possible drop to the 50-day simple moving average. If this level also cracks, the next stop could be $0.36.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

5 altcoins that could breakout if Bitcoin price stays bullish

Bitcoin has turned bullish, but is it a dead cat bounce? If BTC bulls keep pace, LTC, OKB, BIT and FTM could see strong rallies.

The cryptocurrency markets have made a strong comeback in the past few days. That drove the total crypto market capitalization to $995 billion on Jan. 14, according to CoinMarketCap data. Bitcoin (BTC) led the recovery from the front, skyrocketing above $21,000 on Jan. 14.

After the sharp rally, the big question is whether the recovery is a dead cat bounce that is a selling opportunity, or the start of a new uptrend. It is difficult to predict with certainty if a macro bottom has been made but the charts suggest that a bottoming process has begun.

Independent market analyst HornHairs highlighted that the 2017 to 2018 bear market lasted for 364 days and that from 2021 to the current market low, the duration is again 364 days. Another interesting similarity is that the 2015 to 2017 bull market and the 2018 to 2021 bull phase both lasted for 1,064 days. If history repeats itself, then Bitcoin may make the next top in roughly 1,000 days.

Bitcoin’s short-term price action has been exciting for bulls but are there altcoins that are showing similar strength in the near term?

Let’s study the charts to find out.

BTC/USDT

Bitcoin shot up to $21,258 on Jan. 13 and that propelled the relative strength index (RSI) above 89, signaling that the rally was overheated in the short term. The bears are expected to mount a strong defense at $21,500.

Sometimes, when a trend change happens, the RSI may remain in the overbought territory for a long time. If the BTC/USDT pair does not give up much ground from the current level, it will suggest that traders are in no hurry to book profits as they anticipate another leg higher.

If buyers kick the price above $21,500, the pair could climb to $22,800. This level may again act as a major roadblock.

On the way down, the bears will have to drag the price below the psychological level of $20,000 to make a dent in the bullish momentum. The pair could then slump to the breakout level of $18,388.

The four-hour chart shows that the bears are guarding the $21,250 level but a positive sign is that the bulls have not allowed the price to slide back below $20,000. Buyers may again attempt to clear the overhead hurdle at $21,258 and resume the uptrend.

On the contrary, if the price once again turns down from $21,250, it may tempt short-term traders to book profits. That could sink the pair below the 20-day exponential moving average (EMA). The bears may try to capitalize on this situation and pull the pair to $18,388.

LTC/USDT

Litecoin (LTC) broke above the overhead resistance at $85 on Jan. 12, indicating the start of a new uptrend. There is no major hurdle until the price reaches $107.

On the downside, the bulls will try to fiercely defend the zone between $85 and the 20-day EMA ($79). If the price springs back from this zone, the LTC/USDT pair could continue its uptrend and reach $107.

The upsloping moving averages signal advantage to bulls but the RSI above 77 suggests that a minor pullback or consolidation is likely.

If bears want to gain the upper hand, they will have to pull the price below the breakout level of $75. That could make way for a collapse to $61.

The four-hour chart shows the pair is in an uptrend and the bulls are fiercely protecting the 20-EMA. If buyers drive the price above $92, the pair could pick up momentum and rally toward the psychological level of $100.

Conversely, if the price turns down and dives below the 20-EMA, it will suggest that short-term traders may be booking profits. That could pull the price to the 50-day simple moving average (SMA). This is an important level for the bulls to defend because a break below it could heighten the risk of a drop to $80 and then $75.

OKB/USDT

While several cryptocurrencies are attempting to bottom out, OKB (OKB) has started a new uptrend. Usually, it is a good strategy to buy the dips in an uptrend by keeping a suitable stop loss.

The upsloping moving averages and the RSI in the overbought territory indicate that bulls are in command but a short-term consolidation or correction can’t be ruled out. The OKB/USDT pair could slip to the 20-day EMA ($27.64), which is likely to act as strong support.

If the price rebounds off this level, the pair could touch the strong overhead barrier at $34.18. Crossing this level may be a difficult task but if the bulls manage to achieve it, the pair could skyrocket to $42.

If bears want to stall the up-move, they will have to yank the price below the 20-day EMA. If they succeed, the pair could plummet to the 50-day SMA ($24.05).

*OKB/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows that the uptrend met with strong selling near $33 and the pair could correct to the 20-EMA. If the price rebounds off this support, it will suggest that bulls are buying on every minor dip. That could drive the price to $34.18.

Contrarily, if the price plunges below the 20-EMA, the correction could deepen to the 50-SMA. If the price rebounds off this level, the bulls will again try to resume the up-move but may face resistance at $31 and again near $33.

BIT/USDT

BitDAO (BIT) rallied sharply from $0.26 on Dec. 27 to $0.53 on Jan. 14, indicating a strong bullish momentum. In addition, the shallow pullback on Jan. 15 suggests that traders are not exiting their positions in a hurry as they anticipate the up-move to continue.

If bulls thrust the price above the overhead resistance at $0.54, the BIT/USDT pair could resume its up-move. The next resistance on the upside is at $0.68. The bears may pose a strong challenge at this level because a break and close above it could open the doors for a possible rally to $0.80.

On the downside, the first support is at $0.46 and then the 20-day EMA ($0.42). A strong bounce off either support will suggest that traders are buying on declines. That could result in a retest of $0.54. The bears may take control if they sink the price below the 20-day EMA.

*BIT/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows that the pair is facing resistance near $0.54 but the bulls are likely to defend the drop to the 20-EMA. A strong rebound off this level will suggest that bulls are buying on shallow declines. That could improve the prospects of a break above $0.54.

Alternatively, if the price turns down and breaks below the 20-EMA, several short-term traders may book profits. That could pull the pair to the 50-SMA. If this level also cracks, the pair could tumble to $0.41.

FTM/USDT

Fantom (FTM) broke above the downtrend line on Jan. 9, indicating a potential trend change. The breakout was followed by a sharp rally which pushed the RSI into deeply overbought levels.

Vertical rallies are unsustainable, hence a pullback was to be expected. The FTM/USDT pair could dip to the 38.2% Fibonacci retracement level of $0.30 and then to the 50% retracement level of $0.28.

If the price turns up from this zone, it will suggest a change in sentiment from selling on rallies to buying on dips. The bulls will then try to resume the recovery and drive the pair above $0.36. If they do that, the pair could surge to $0.42.

Contrarily, a break and close below $0.28 could pull the pair down to the 61.8% retracement level of $0.26. A deeper fall could break the bullish momentum and increase the possibility of a range formation.

Both moving averages are sloping up and the RSI is in the positive territory, indicating an advantage to buyers. The pair could slide to the 20-EMA, which is likely to act as a strong support. If the price rebounds off this level, the bulls will try to resume the up-move.

On the contrary, if the price breaks below the 20-EMA, it will suggest that traders are aggressively booking profits after the recent rally. The pair could then extend its correction to the 50-SMA.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Andre Cronje says Fantom will focus on DApp ecosystem expansion in 2023

Fantom previously pledged to cut its token burn rate by 75% to incentivize decentralized application development.

In a new Medium post published on Dec. 26, decentralized finance architect Andre Cronje reaffirmed the goals and priorities for the Fantom ecosystem in 2023. Cronje, who previously created protocols such as Yearn.finance and Keep3rV1, also revealed that he accepted a position as a board member for both Fantom Foundation Ltd and Fantom Operations Ltd, which oversee the namesake directed acrylic graph ecosystem.

“Our overarching objective over the next 12 months will be towards creating an environment for dapp developers to build out sustainable businesses, while differentiating ourselves from other layer 1 solutions.”

One key point on Cronje’s 2023 Fantom roadmap is gas monetization, which would allow revenue share for decentralized applications, or DApps, as a development incentive. In addition, Fantom DApps would be able to interact without a wallet needing to pay the gas fees itself, through gas subsidies. “Users don’t need to have or know about FTM [during onboarding],” Cronje wrote.

Other areas of “gas reform” include ending the distinction between smart contracts and externally owned accounts so everyone can initiate transactions and pay for gas. Tokens other than FTM (FTM) would also be eligible for use as gas fees on the protocol.

In terms of new developments, Cronje plans to focus on building the Fantom Virtual Machine and a new storage mechanism. As for the protocol’s financial management, Cronje wrote:

“As has been communicated publicly, we are in a very sustainable and healthy position given the current economic climate, and especially compared to 2018. This is finally one threat to our existence we do not have to be too concerned about.”

Cointelegraph previously reported on Dec. 1 that Fantom had announced plans to cut its token burn rate by 75% to fund its DApp reward program. DApps must have recorded 1,000,000 or more transactions and have spent at least three months on the Fantom Opera network to be eligible for rewards.

New governance proposal: dApp Gas Monetization Program

This gas monetization program will seek to reward high-quality dApps, retain talented creators, and support #Fantom’s network infrastructure.

Read the full detailshttps://t.co/GVBAWXqXBO

— Fantom Foundation (@FantomFDN) December 1, 2022

Fantom wants to cut token burn rate by 75% to fund DApp rewards program

“Fantom will become the youtube/twitch of blockchain platforms,” commented ecosystem architect Andre Cronje.

According to a new proposal dated Dec. 1, directed acrylic graph network Fantom seeks to implement an affiliate program for its decentralized application (DApp) developers with network gas fees. To fund this venture, the Fantom community has proposed slashing the protocol’s current FTM token burn rate from 20% to 5%. In supporting the proposal, Fantom developers wrote:

“We take what works in web2 and restructure it to fit the network’s priorities, which means taking the ad monetisation model and extending it to gas monetisation for performing dApps that manage to attract a steady stream of users.”

The development team further elaborated that Fantom’s Opera network [native DApp builder] “is not directly competing against Youtube or Twitter,” but seeks to “attract and retain high-grade talent continuously” in the Web3 space. To qualify for the potential incentive, DApps must have recorded 1,000,000 or more transactions and have spent three months or above on the Fantom Opera network. Upon approval, developers can then claim 15% of the total gas fees spent on their DApp.

New governance proposal: dApp Gas Monetization Program

This gas monetization program will seek to reward high-quality dApps, retain talented creators, and support #Fantom’s network infrastructure.

Read the full detailshttps://t.co/GVBAWXqXBO

— Fantom Foundation (@FantomFDN) December 1, 2022

However, the Fantom Foundation said that it “reserves the right to halt any payment stream indefinitely for any reason, including if fraudulent user activity is suspected or if the Foundation believes it is in the best interests of the Fantom ecosystem.” Currently, a total of 8.36 million FTM tokens have been burned since the Fantom mainnet went live in 2019. Voting for the proposal is ongoing and requires a minimum of 55% turnout from FTM tokenholders to pass.

FTM price rebounds 50% as Fantom reveals 30 years runway (without having to sell its token)

The Fantom Foundation’s attempt to dispel concerns about potential FTX exposure has been a success thus far for FTM price.

Fantom (FTM) continued its upward momentum on Nov. 30 amid reports that the Fantom Foundation generates consistent profits and has 30 years of runway without having to sell any FTM tokens.

Fantom’s FTM holdings up from 3% to 14%

FTM price gained nearly 13.5% to reach $0.24, its highest level in three weeks. The rally came as a part of a broader rebound trend that started when it bottomed out at around $0.17 on Nov. 22. This amounts to a 50% price rebound in the last eight days.

Interestingly, the rally picked up momentum after the Fantom Foundation’s “Architect,” Andre Cronje, released the firm’s financial records on Nov. 28, revealing that it had $340 million worth of digital assets and had been earning over $10 million annually. Notably:

Nov 2022 — Over 450,000,000 FTM, > $100,000,000 in stables, > $100,000,000 in crypto assets, $50,000,000 in non-crypto assets. Salary burn rate $7,000,000 / year. We have ~30 years left (without having to touch FTM)

Certain crypto and blockchain projects have suffered due to their potential exposure to failing companies.

For instance, the collapse of the FTX crypto exchange triggered major price declines in Solana (SOL) and its associated project tokens, such as Serum (SRM). FTX and its sister firm Alameda Research were Solana ecosystem’s major supporters.

*Solana ecosystem performance in different timeframes. Source: Messari*

In February 2021, Alameda also purchased $35 million worth of FTM tokens to become a validator on the Fantom blockchain. This exposure may have been a key factor behind FTM’s underperformance in the early days of November, wherein its price declined by as much as 35%.

Cronje downplayed any connection with FTX/Alameda, explaining that being a validator does not make one part of the foundation.

“Unlike most of our competitors, the foundation owns a relatively small amount of FTM,” he wrote, adding:

“Most comparable L1s own between 50% — 80% of their token supply. At launch, Fantom owned less than 3%. Today, we own more than 14%. We prefer buying our tokens; we don’t ‘sell’ our tokens for ‘partnerships.’

Cronje also revealed that Fantom passed on further cooperation with Alameda in January 2022.

FTM whales and fishes accumulate

Fantom’s on-chain data reveals that addresses holding more than 1 million FTM have been distributing the tokens during the FTX-led crypto market decline.

On the other hand, the supply of Fantom tokens held by addresses with a balance between 1 and 1 million FTM increased in November, suggesting strong accumulation among the network’s richest (whales) and poorest (fishes) investors.

*Fantom supply distribution among addresses with a 1-infinity FTM balance. Source: Santiment*

In other words, these investors anticipate FTM to undergo a strong price recovery in the future.

Technicals support the bullish outlook to a certain degree. FTM price now eyes a nearly 20% rally toward $0.30, which coincides with the token’s prevailing descending channel’s upper trendline and its 50-3D exponential moving average (50-3D EMA; the red wave), as shown below.

*FTM/USD three-day price chart. Source: TradingView*

Conversely, testing $0.30 as resistance could have FTM eye a strong pullback toward the descending channel’s lower trendline near $0.16, which has also served as support in July 2021, or a 30% price decline from today’s levels.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Traders expect 200% upside from MATIC, but does Polygon network data support that?

MATIC’s recent rally and partnerships are turning heads and on-chain activity may hint at further growth.

In the past year, Polygon (MATIC) has focused on growing their list of high-profile partners which includes luminaries like Disney, Starbucks and Robinhood. The recent announcements of partnerships with both Instagram and JPMorgan have speculators pushing the token price up nearly 200%.

In addition to partnerships, blockchain adoption through network usage is important to analyze. Blockchain adoption can be analyzed by looking into daily active users of the blockchain, protocols using the technology, number of transactions and total locked value.

Total value locked on Polygon rises above $1B

Total value locked (TVL) is one cryptocurrency indicator used to assess the market’s sentiment towards a particular blockchain. TVL on Polygon requires utilizing the MATIC blockchain and locking funds in the various DeFi platforms available across the network.

Rising TVL is a sign of growth, or new liquidity entering the ecosystem but it does not necessarily mean that the network and associated assets are “turning bullish.”

While the top 3 protocols, Ethereum (ETH), Binance Coin (BNB) and Tron (TRX) all have a TVL over $5 billion, MATIC, Avalanche (AVAX) and Arbitrum are the only others with over $1 billion in TVL.

According to data from Token Terminal, Polygon and Fantom (FTM) are the only blockchains to post positive TVL numbers in both 1 day and 7 day metrics.

*Top blockchains sorted by TVL. Source: Defi Llama*

Top 3 protocol blockchain for developers

Protocols are essentially decentralized applications (dApps) built using smart contracts on top of public blockchains. The recently announced partnerships have be tested but have not yet fully launched.

Even if the new partnerships do not fully materialize, the network is already a top contender for developers to build their smart contracts.

*Top blockchains sorted by protocol number. Source: Defi Llama*

Polygon is a newcomer when compared to Ethereum. So although Ethereum has more protocols than Polygon, Ethereum launched mainnet with a 5 year head start.

Polygon’s astronomical growth in protocols launching on their blockchain is notable because according to TokenTerminal’s data, Ether’s market cap dominates MATIC 90% to 10%.

Polygon sees an uptick in fees and daily active users

In addition to Polygon’s price growing 12% in the past month, the network’s daily fees and daily active users have grown by 200% since August 5 lending credence to the Cointelegraph prediction.

On August 5, Polygon collected $42,093 in fees and had 248,853 daily network users. By October 13, the network’s daily active users peaked at 737,815 following the success of the Reddit NFT avatar launch. Following on October 25 the network hit a 90 day peak of $131,940 in daily fees.

*Polygon network fees and daily active users. Source: TokenTerminal*

When comparing the on-chain activity and analysis with the recent MATIC rally, the data suggests that speculation on the partnership news matches the fundamentals.

While it is a stretch to forecast a 200% potential gain in MATIC growth by only using technical analysis, Polygon’s network growth and daily active user stats are encouraging.

The number of transactions and TVL could be a sign that network fundamentals align with the expectations of technical analysts. MATIC’s strength versus competing chains, while still being only a fraction of Ether and BNB’s market cap is quite bullish for its long-term growth prospects.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

How to stake Fantom (FTM)?

An alternative to Ethereum, Fantom is a layer-1 blockchain on which you can stake Fantom (FTM) to earn passive income with crypto holdings.

Fantom (FTM) is known for its speed and inexpensive layer-1 blockchain. Like other blockchains (for example, Solana (SOL) and Avalanche (AVAX)) that scale better than their counterpart, it has been dubbed an “Ethereum killer.” After raising $40 million in funds, Fantom launched its mainnet in December 2019. Since then, it has grown to become one of the most popular blockchains, sitting in the top 10 blockchains by total value locked (TVL) with $1.3 billion in TVL.

Fantom’s high-throughput blockchain is an open-source smart contract platform. It is scalable and EVM-compatible, meaning you can deploy and run your Ethereum decentralized applications (DApps) on Fantom. Its structure enables the support for its decentralized finance (DeFi), other than managing digital assets and DApps.

The Fantom consensus mechanism is an adapted version of proof-of-stake, and it’s called Lachesis. It’s been designed to provide high-speed transactions, low fees and almost instant finality due to the aBFT algorithm. aBFT can scale to many nodes worldwide in a permissionless, open-source environment, offering a good level of decentralization.

The Fantom blockchain is powered by its native FTM token, and if you believe in the project and want to grow your FTM stack, you can consider staking Fantom to earn passive income.

What is Fantom staking?

Staking is making a blockchain more secure by locking up an investor’s digital assets for a certain amount of time. This security is provided by validators who validate transactions with their staked tokens, which becomes an economic incentive for them to behave according to the protocol’s rules.

By staking FTM, investors actively participate in securing its network while earning passive income, i.e., FTM rewards. Staking means that tokens will have to be locked up for some time; however, they will still be sitting in the owners’ wallets, only they can access and unlock their funds anytime.

How to stake FTM

The minimum stake amount to run a validator is 500,000 FTM to prevent Sybil attacks on its consensus mechanism. Sybil attacks are malicious attacks that involve falsifying multiple identities to gain an undue advantage within a network. As the validator’s required amount is relatively high, it becomes easier to delegate FTM to a validator.

A few Fantom staking strategies can be used:

Fluid staking: Investors can lock up their FTM token from two weeks to 365 days for better returns. The reward varies according to the length of the staking period; the longer FTMs are staked, the higher the reward rate.
Liquid staking: Investors can mint sFTM for improved ROI when liquid staking. They can also stake farmed tokens, participate in liquidity mining, farm LP rewards and more.
Custodial staking: Investors can take FTM on a centralized exchange (CEX) like Binance or Coinbase. The staking reward is 1%.

To stake on Fantom, users can follow these simple steps:

Have a minimum of 1 FTM to stake;
Go to the Fantom staking page and click Stake your FTM;
You can log in with a compatible wallet, like MetaMask. You can open the wallet from your computer or your mobile device. You can create a new wallet or access an existing one using a mnemonic or seed phrase.
Deposit your FTM by transferring them from an exchange or another wallet to your Fantom Opera wallet address.
Click on “Staking.”
Add a delegation by choosing a validator and an amount.
Select your lock-up period and confirm.

There are a few options when it comes to optimal Fantom wallets. The Fantom Opera network is a second-layer and EVM-compatible blockchain, meaning that you can use any wallet that works for Ethereum, such as MetaMask, the Coinbase Wallet or a cold wallet like Ledger.

After creating an account on Fantom, you can also download your Fantom wallet (fwallet) by clicking on the “Create Wallet” button:

Where to stake FTM?

Other than its native blockchain network, Fantom can be staked across many platforms, including decentralized exchanges (DEX) and custodial blockchains. Here we’ll look at the places to stake Fantom so you can decide which is the most suitable.

How to stake Fantom on Ledger

Staking through a hardware wallet like Ledger works through a smart contract interaction, like other transactions. It’s sufficient to stake from the Fantom fWallet by signing Fantom FTM Ledger Nano S application. Then, use the “Stake” menu item on your account.

How to stake Fantom on Coinbase

In September 2021, Fantom announced support for the Fantom network on the Coinbase Wallet. Coinbase Wallet users can access and use the Fantom network and engage with Fantom DApps. Users can connect their Coinbase Wallet account to their Fantom fWallet and conduct activities such as stake FTM and earn rewards.

How to stake Fantom on Binance

To stake FTM on Binance, you have to deposit a convenient amount on the exchange, then go to Binance Earn and pick the suitable product for you; usually, it’s a locked up period of 30, 60, or 120 days. You can choose a more extended staking period for higher returns up to 14%.

How to stake Fantom on Kucoin

Similarly to Binance, you must deposit your FTM token on Kucoin and go to Kucoin Earn. Then click “Subscribe” to pick the product that suits you better, based on rewards and the time you want to lock your assets.

Is it safe to stake FTM?

It is safe to stake FTM because the validator node cannot access your staked tokens; make sure not to lose your mnemonic phrase or private key. However, like in other proof-of-stake blockchains, you risk losing a fraction of your stake if the validator is not reputable and misbehaves. It’s safer to select reputable Fantom validators who always have active communities, websites and Twitter accounts.

How to stake other tokens on Fantom

Fantom provides a flexible and dynamic ecosystem enabling the staking of several DeFi tokens to earn passive income on your investment. To use any of the following systems to stake their native tokens, you need a MetaMask or any other wallet mentioned above connected to the Fantom Opera network. In this case, Fantom staking acts like a CEX, such as Binance, becoming a marketplace where non-native cryptocurrencies are traded.

Here are some of the most popular tokens that are based and can be staked on Fantom:

Spookyswap is the biggest DEX on Fantom, with $777 million TVL and BOO being its native token, which can be bonded with FTM for maximum liquidity and to yield farm. To stake BOO, buy the tokens in an exchange or swap them in Spookyswap; connect your wallet to Fantom Opera to view your positions and start earning.
BeethovenX is a community-driven DEX, an automated market maker (AMM) and a DeFi powerhouse. Governed by BEETS native token and living on the Fantom Opera and Optimism chain, it yields an APR of 31%. To stake Beets, after depositing some FTM, connect your wallet to Fantom Opera and follow the procedure to choose a validator and the locking time.
QiDao is an autonomous and community-governed protocol that sits on Fantom and allows you to borrow stablecoins with zero interest against your crypto assets used as collateral. Loans are paid and repaid in miTokens (stablecoin soft pegged to the USD).
Scream is another decentralized lending protocol powered by Fantom, similar to platforms like Compound (COMP) and Aave (AAVE). Users who stake SCREAM tokens can earn around 58% APR, while for liquidity providers, the rewards can be as high as 82% APR.

How to run a Fantom node

Validators run full nodes and are a crucial part of the Fantom network. By running a full node, validators participate in the consensus to boost security and generate new blocks. There are some technical requirements and skills to be considered to run a Fantom full node, and it might be more suitable for a techie operator.

Following are the requirements necessary to run a Fantom full node:

Minimum requirement: 500,000 FTM
Maximum validator size: 15x the self-stake amount
Minimum hardware requirements: AWS EC2 m5.xlarge with four vCPUs (3.1 GHz) and at least 4.5 TB of Amazon EBS General Purpose SSD (gp2) storage (or equivalent).
Rewards: currently ~13% APY (Normal APY on self-stake + 15% of delegators’ rewards). APY varies based on staked %. For up-to-date APY, check the Fantom Foundation website.

A step-by-step guide to running a full-node

Users can run a node on their hardware or use a cloud provider. One of the big cloud providers, e.g., Amazon AWS, is recommended.
They can set up a non-root user.
Install the required building tools; install Go and then Opera.
Register their Fantom validator node on-chain. To do this, users need to create a validator wallet that becomes the validator’s identity in the network, required to authenticate, sign messages, etc.
Run their own node. To do this, they need to restart their node in validator mode, then close the Opera window by typing “exit.” Then they need to head back to the window where they started their node with the following command:

(validator)$ nohup ./opera –genesis $NETWORK –nousb –validator.id ID –validator.pubkey 0xPubkey –validator.password /path/to/password &

Users can refer to Fantom’s instructions for full specifications and details on how to run a validator node.

How much money can you make staking Fantom?

You can earn 5.01% if you choose the minimum lock-up period (14 days) and the minimum amount. The maximum APY is currently 15.31% for the maximum lock-up period of 365 days.

The FTM staking rewards calculator will estimate how much can be earned by staking Fantom.

FTM and most crypto tokens have dropped by over 90% during the 2022 bear market; therefore, staking will grow the number of your tokens but not necessarily the overall value. It’s also worth considering that staking and locking your tokens up may make your funds illiquid and exiting a position difficult.

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Aave devs propose freezing Fantom integration, citing lack of traction and potential vulnerability

The Fantom market on Aave v3 adds just $30 each day to the DeFi protocol’s treasury; developers are also concerned that the integration creates security risks.

On Tuesday, Marc Zeller, integration lead at decentralized finance (DeFi) borrowing and lending protocol Aave, proposed to freeze the platform’s v3 Fantom market. Created in 2018, Fantom is a directed acrylic graph smart contract platform that provides DeFi services and on which Aave is currently bridged.

Zeller explained the rationale for removing the Fantom bridge:

“After the Harmony bridge event and the recent Nomad bridge exploit, the Aave community should consider the risk/benefits of keeping an active Aave V3 market on Fantom as this network is dependent on any swap (multichain) bridge.”

Zeller further explained that the Aave v3 Fantom market did not gain noticeable traction, with a current market size of $9 million and $2.4 million of open borrowing. In comparison, the Aave protocol has a total value locked of $3.48 billion. Meanwhile, the Fantom market on Aave only generates approximately $300 per day for the borrowing-lending protocol, of which $30 goes to the Aave Treasury.

If passed, the Aave Improvement Protocol would allow users to repay their debts and withdraw but block further deposits and borrowings in this market. After five days, a community vote will be held to determine the future of Aave v3 Fantom. The Aave team wrote:

“The risk of exposing users to potentially losing millions of $ due to causes exterior to intrinsic Aave security is considered not worth the $30 of daily fees accrued by the Aave treasury.”

Multichain bridging, while praised by some as a pinnacle of interchain communications, has been criticized by skeptics such as Vitalik Buterin for its supposed fragility . Earlier on Tuesday, the Nomad token bridge was drained for $190 million after hackers discovered a single code exploit that anyone could replicate, leading to a “decentralized robbery” as other users joined in on the initial hacker’s siphoning of funds.

After publication, Simone Pomposi, Fantom’s chief marketing officer reached out to Cointelegraph, claiming:

“The Aave governance proposal has been framed as to prevent a potential bridging problem; however, the actual reason behind the proposal seems to be that Aave is not capturing enough market share on the Fantom network to justify the risk. Proposing to remove access to a decentralized app because the business model is faulty/unprofitable makes sense, but blaming it on hypotheticals [related to cross-chain bridges] isn’t fair.”