Fantom’s Sonic upgrade: 2,000 transactions per second, finality in less than 1 second.
This could be the catalyst for $FTM’s glorious resurgence.
This is an investment research report on the underlying ecological chain of Fantom (FTM)!
Fantom is a layer 1 blockchain with the following characteristics:
• No permission required
• Decentralization
• Open source
Lachesis is a revolutionary aBFT consensus protocol that makes Fantom faster and cheaper than previous technologies while retaining strong security.
Fantom was one of the OG DeFi chains of the last bull run (2021), especially being backed by AC, and holds a special place in the hearts of many. It is home to hundreds of popular dApps such as:
• SpookySwap
• Beethoven X
• CREAM
• SpiritSwap
Recently, the team announced Sonic, the next generation version of the Fantom technology stack.
It is scheduled to launch in the second quarter of 2024 and will consist of three main parts:
1. Fantom Virtual Machine (FVM)
2. Carmen database storage
3. Optimize the Lachesis consensus mechanism
Fantom’s TVL is currently $200 million, a 98% drop from its peak of $8.7 billion in 2022. It was one of the hardest hit projects during the bear market.
Still, there are signs of recovery, with sales and TVL both up more than 100% last month.
In the past 30 days, FantomFDN earned $280,000 in fees and $80,000 in revenue.
Fantom’s gas monetization program shares 15% of gas fees with dApps to ensure sustainable revenue and support projects built on its chain.
FantomFDN token $FTM is used for:
• Pay transaction fees
• Execute smart contracts
• Securing the network with PoS
• Governance voting
The reason why the circulating supply is less than the total supply is due to the combustion mechanism
Here’s how gas fees are distributed for each transaction:
• 70% → Validators
• 15% → GasM Plan
• 10% → Ecosystem Treasury
• 5% → permanent burning
A total of over 11.2m $FTM has been burned to date.
100% of FTM tokens are unlocked and there is no further vesting cliff.
Current supply statistics:
• Token price: $0.98
• Market value: $2.76 billion
• FDV: $3.13 billion
• Market Cap/FDV: 88%
According to Arkham, FantomFDN Multisig currently holds $270 million FTM = $270 million (at current prices).
According to a November 22 blog post, Andre also noted that the Treasury holds:
• >$100M Stables
• >$100 million in crypto assets
• $50 million in non-crypto assets
Total estimate = $521 million
On Fantom, governance works through an on-chain process where FTM stakers can submit and vote on proposals that impact the platform’s mechanics and token economics.
Over the past 3 years, 40 proposals have been submitted and voted on by FTM stakeholders.
Fantom was founded in 2018, and its current main contributors include AndreCronjeTech and Michaelfkong.
FantomFDN has raised $81.6 million over the years ($40 million in funding rounds and $41.6 million in public offerings).
Notable investors include: Arrington XRP Capital, Bitscale Capital, and DHVC.
Fantom faces stiff competition from numerous blockchains, including Layer 1s like Solana, Avalanche, and Sui, and Layer 2s like Arbitrum, Polygon, and Base.
Fantom's path to success has been rocky as competition is fierce as projects strive to innovate and attract TVL.
CertiK scored 89.67, ranking 20th among other L1s.
Although the 2023 multi-chain incident was not caused by any vulnerability in Fantom, it left many lasting scars.
The good news is that a Singaporean judge recently ruled in Fantom's favor in the lawsuit.
Overall, I am more optimistic about Fantom. It was one of my favorite underlying ecological chains in the last bull market, and now the technology is better.
Upcoming Catalysts:
• Sonic upgrades
• Ecosystem airdrop
• Andre Cronje Factor
Total weighted score = 8.35 points
If you like this type of investment research report, then you can follow me and I will update four similar project reports every month.
Remember, if you view your position as a long-term investment, a market drop should be viewed as a gift. It provides an opportunity to buy more tokens.
Finally, it is crucial to have a strategy before making any purchases, and never invest all of your money.
I hope this topic is helpful to you, 🙏Thank you for your likes and support👍
