Fantom price prediction as its DeFi TVL surges
- The Fantom price has made a spectacular comeback lately.
- It is trading at $2.23, which is about 25% above the weekend low.
- We explain the next key level to watch as the TVL grows.
The Fantom (FTM/USD) price is attempting to make a comeback as investors cheer the ongoing ecosystem growth. The coin is trading at $2.23, which is about 25% above the weekend low of $1.7800.
Fantom ecosystem growth
Fantom is a relatively young company that has shown some spectacular growth in the past few months. It is an Ethereum-killer that seeks to become a better platform for developers.
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Fantom hopes to solve the key challenges that Ethereum has. For example, apps built on its platform are known to be significantly faster than Ethereum. While Ethereum handles less than 20 transactions per second (TPS), Fantom handles more than 1,000. This means that users don’t have to wait for so long to complete their transactions.
At the same time, these transactions are significantly cheaper than those in Ethereum’s ecosystem. For example, while Ethereum’s transactions cost as much as $40, Fantom’s cost just a few cents. As such, many users prefer the platform because of the savings they can make.
Meanwhile, Fantom was built from scratch using a proof-of-stake mechanism that ensures a significantly low carbon footprint. Ethereum uses a proof-of-work mining method that is usually significantly expensive.
All this explains why the Fantom ecosystem has grown rapidly in the past few months. Today, data compiled by DeFi Llama showed that the total value locked (TVL) in the ecosystem has jumped to more than $12 billion. As such, this makes it the third-biggest platform after Ethereum. Along the way, it has passed the likes of the Binance Smart Chain (BSc), Solana, and Polygon.
Some of the biggest apps in the ecosystem are MultiChain, OxDAO, SpookySwap, Yearn Finance, and Curve. Find out more about getting YFI in this article.
Fantom price prediction
The four-hour chart shows that the FTM price has been in a major sell-off in the past few weeks. Precisely, it has crashed by over 30% from its highest level this year.
However, in the past two days, the Fantom price has made a comeback as investors cheer the ecosystem growth. It remains slightly below the 25-day and 50-day exponential moving averages while it has made a small double-bottom pattern.
Therefore, the coin will likely keep falling as investors buy the dip. If this happens, the next key level to watch will be at $2.50.
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