Fantom (FTM), a Layer-1 (L1) protocol, and its native token, FTM, have made impressive strides in the first quarter (Q1) of 2024, boasting significant growth in key metrics and market capitalization.
Fantom Market Cap Soars
Messari’s analysis highlights Fantom as a major beneficiary of the emerging crypto bull market. FTM’s circulating market capitalization skyrocketed 101% quarter-over-quarter (QoQ), jumping from $1.3 billion to $2.6 billion. This surge propelled FTM ten spots in the rankings, currently sitting at 58th among all tokens. The token’s rally extends over two consecutive quarters, resulting in a remarkable fourfold increase since the end of Q3 2023.
While FTM revenue measured in FTM tokens decreased by 53% QoQ to 1.8 million FTM, revenue denominated in USD actually saw a 4% QoQ increase, reaching $1.2 million. Messari attributes the token-denominated decline to reduced inscription activity across all smart contract platforms in Q1.
FTM Transaction Activity on the Rise
Despite the revenue dip, Fantom maintained an upward trend in daily transactions, excluding inscription activity. Daily transactions surpassed the Q3 average, reaching a healthy 247,000. Daily active addresses also rebounded, rising by 24% QoQ to 40,500.
Fantom made a significant move in Q1 by slashing the staking requirement for validators from 500,000 FTM to 50,000 FTM, aiming to boost accessibility. However, the number of active validators remained steady at 55. Moreover, the total amount of FTM staked increased by 17% QoQ, from 1.1 billion to 1.3 billion FTM. This impressive growth translates to a 135% QoQ surge in the total dollar value of staked FTM, reaching $1.2 billion. By the end of Q1, Fantom ranked 22nd among proof-of-stake (PoS) networks in terms of the dollar value of staked funds.
Memecoins Boost On-Chain Activity on Fantom
Fantom’s Total Value Locked (TVL) denominated in USD experienced a substantial 59% QoQ increase, rising from $810.8 million in Q4 to $1.28 billion. However, TVL denominated in FTM decreased by 21% QoQ, suggesting that FTM’s price appreciation partially fueled the USD-denominated TVL surge.
Fantom’s average daily decentralized exchange (DEX) volume jumped by an impressive 64% QoQ, climbing from $10.2 million to nearly $176.8 million. The “Memecoin Mania” trend in Q1 undoubtedly contributed to elevated on-chain activity across various networks, including Fantom.
Fantom’s monthly DEX volume surpassed $1 billion for the first time since March 2023, a significant milestone. The number of DEXs on Fantom also grew to 31 by the end of Q1, with no single DEX dominating more than 30% of the market share.
Stablecoin Liquidity Strengthened
Following the Multichain: Fantom Bridge exploit in Q3 2023, which impacted stablecoins on Fantom, the Fantom Foundation took steps to bolster stablecoin liquidity. As of Q1 2024, two independent third-party bridging solutions, Axelar (axlUSDC and axlUSDT) and LayerZero (lzUSDC and lzUSDT), have emerged. USDC remains the dominant stablecoin on Fantom, accounting for a whopping 98% of the stablecoin market cap. USDT also saw significant growth, with an 86% QoQ increase.
The FTM token is currently trading at $0.69, reflecting an 6.7% price increase over the past week. However, it’s down nearly 20% compared to the previous month.
