An Ethereum-Layer 1 competitor that has recently made headlines is Fantom (FTM)! Over the weekend, Fantom (FTM) price moved closer to $3.40, hitting a new all-time high. This comes against the backdrop of a strong 15% pump in FTM price on Sunday, January 16.
According to on-chain data provider Santiment, the FTM funding rate on platforms like Binance is turning negative, indicating heavy shorts. However, these shorter ones got their fingers burned a lot amid this strong price rally. As a Santiment data provider reports:
Fantom is closing in on its $3.47 #AllTimeHigh, produced at the end of October. A signal to watch closely is $FTMthe funding rate on exchanges like Binance. When turning negative, indicating many shorts, prices have tended to surge.
Another big milestone that Fantom hit over the weekend is the number of DEX trades. On Saturday, January 15, Fantom ranked third in DEX on-chain volumes after Ethereum and Binance Smart Chain. Furthermore, Fantom has also managed to outperform giants like Polygon and Avalanche in terms of DEX trades.
Fantom’s Defi TVL Surpasses $10 Billion
The reason for the recent rise in FTM prices is also the high DeFi activity. The total value locked (TVL) on the Fantom blockchain crossed $7.75 billion last week. This was a staggering jump of 26% on a weekly basis.
Fantom is becoming a faster competitor to other Ethereum Layer 1s as it leverages the DAG-based smart contract platform for DApps, making it highly scalable. Additionally, Fantom is also positioning itself as a cheaper and faster alternative to other Ethereum Layer 1s.
For example, Fantom only takes 1 second to transfer money with transaction costs as low as $0.0000001. While on Ethereum, the average transaction time is 15 seconds and the average transaction cost is $3.
Fantom’s native FTM token can be useful for various purposes such as staking, payments, and governance.
The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.