Fantom Positions Itself To Become A Powerhouse Protocol As Blockchain Adoption Rises

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

It’s well known that the cryptocurrency markets can be highly volatile and fast-paced with price trends switching at the drop of a hat and new pump and dump tokens emerging on a weekly basis. 

While the traders and Twitter influencers like to focus most of their attention on price and the adrenaline rush that comes with surfing the market cycles, long-term holders know it’s a project’s fundamentals that really matter. 

Fantom (FTM) is one project that has quietly positioned itself to be an integral part of the mainstream blockchain rollout as its ecosystem continues to attract new developers and users looking to take advantage of its low-cost environment. 

Decentralized Finance Attracts New Users

Decentralized finance (DeFi) has emerged as one of the hottest trends in 2021 by offering cryptocurrency holders simple ways to earn a yield on their holdings that far exceeds what they can earn in a bank savings account.

While a vast majority of the current DeFi protocols operate on the Ethereum network, high transaction costs and delayed transaction processing have hampered the average user and investor from conducting even the simplest operations like transferring a token from one wallet to another. 

The highly scalable, low-cost nature of the Fantom protocol has led to the creation of numerous DeFi protocols on the Fantom network. As of August 7, the combined total value locked (TVL) in the DeFi platforms on Fantom is $319.49 million according to data from Defi Llama. 

As uncertainty remains as to when the Ethereum network will go full proof-of-stake (POS) and how the protocol will function once fully implemented, the Fantom protocol is already a functioning POS network that allows token holders to stake their tokens and earn rewards that they can access. 

Users can currently stake their tokens for a minimum of one day with an APR of 3.78% to a maximum of 365 days and earn an APR of 11.58%. 

A Bridge Between Networks

Another major crypto trend in 2021 is interoperability, and Fantom is ahead of the curve in this regard with a functioning bridge to the Ethereum network that effectively makes Fantom an “Ethereum Helper” and early scaling solution. 

Despite the recent successful integration of the London hard fork on the Ethereum network, the cost of transactions remains high and the need for functioning scaling solutions remains. 

Numerous protocols that previously operated on Ethereum have already crossed the bridge to benefit from the Fantom protocol including Curve (CRV), Ren (REN), and SushiSwap (SUSHI). 

And it’s not just DeFi protocols that have sought refuge from high fees on the Fantom chain. Multiple projects from the other hot sector of 2021, non-fungible tokens, have now been deployed on the Fantom network including SuperFarm (SUPER) and Fantom Punks. 

As a result of all the new development on the network, users have continued to flock to Fantom with data from FTMscan showing that the number of unique addresses reached a new all-time high of 354,602 on August 6 and shows no evidence of slowing down anytime soon. 

With the top cryptocurrency Bitcoin now back above $44,000 and chatter about a second phase to the bull run beginning, Fantom is one project to keep an eye on as it is well-positioned to see continued growth and expand its user base in the months and years to come. 
Image Sourced from BTC Peers

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.