Metric analysis

Fantom (FTM) reaches a new all-time high, an important funding rate to watch

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.

Courtesy: Santiment

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.

Bhushan is a FinTech enthusiast and has a good flair for understanding financial markets. His interest in economics and finance draws his attention to the new emerging markets of Blockchain technology and cryptocurrency. He is continually in a learning process and motivates himself by sharing his acquired knowledge. In his free time, he reads thrillers and sometimes explores his cooking skills.

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