Total Value On Fantom Blockchain Surges 65% In 2 Weeks To $12B, Surpassing Ethereum's Daily Transactions

The Total Value Locked (TVL) on the Fantom FTM/USD blockchain has now surpassed $12 billion.

What Happened: According to data from DeFi Llama, the TVL on DeFi protocols built on Fantom surged 65% in the last 14 days to hit $12.66 billion. In the last month, TVL has surged by more than 170%.

Fantom is now the third-largest blockchain, after Ethereum ETH/USD and Terra LUNA/USD in terms of TVL.

Why It Matters: TVL is a common metric used to measure the value of blockchains with growing DeFi ecosystems.

The logic is that price will follow TVL, particularly if the market cap to TVL ratio is under 1 implying that the blockchain is undervalued.

As of Tuesday morning, Fantom’s market cap to TVL ratio was just 0.48. Comparatively, Luna had a ratio of 1.58, and Ethereum's ratio is 2.5.

“Fantom started the year at the 8th spot in TVL rankings by chain. Since then, it has climbed up to the 3rd spot, with the flippening of BSC occurring earlier today,” wrote analysts from Delphi Digital in a report on Tuesday.

“Many projects like Radial, veDAO, and 0xDAO came up with liquidity mining launches that vampire attacked other protocols to gain TVL. These projects share a lot of resemblance to defi summer projects in 2020." the analysts noted.

"Mercenary capital came over to Fantom to yield farm these projects as they were providing incredible yields on single-sided staking,” they added.

On Tuesday, data revealed that transactions on Fantom hit 1.2 million over the last 24 hours, surpassing Ethereum’s 1.1 million transactions over the same period.

Price Action: At press time, FTM was trading at $2.37 gaining 22.37% in the last 24 hours.