Is Fantom (FTM) an Undervalued Crypto?
Fantom (FTM) crypto is an open source, layer-1, Proof of Stake (PoS) blockchain that can execute smart contracts. Fantom’s PoS consensus mechanism, Lachesis, permits transactions to be speedy, secure and scalable. The crypto asset had a successful year, to say the least. At this time last year, Fantom was trading at just over $0.02 and is currently trading at $2.75.
Fantom provides exceptional security and is highly scalable. With a market cap of just under $7 billion, you may think I am crazy to say (well, write) that FTM is still undervalued. The thing is, I believe the whole Fantom decentralised app (dApp) ecosystem is undervalued.
DeFi on Fantom should fare well in 2022
On 30 August 2021, the Fantom Foundation announced a 370 million FTM incentive program for protocol builders on Fantom. If you sustain and increase your total value locked (TVL) on Fantom, they will reward you. It is no wonder that there are currently 110 projects building on Fantom, with a TVL of almost $5.7 billion.
Yet, if we compare Fantom DeFi apps to their Ethereum, Binance Smart Chain (BSC) and Avalanche counterparts in terms of market cap/TVL, you will see that they are trading at a relative discount (TVL).
If we take Ethereum for example, Spookyswap, Hector Dao, Geist and Spiritswap are direct copies of their Ethereum counterparts, yet are undervalued.
We are looking at an average undervaluation of 20%, with Spookyswap being the most undervalued dApp. The 370 million war chest is worth roughly $1 billion in today’s market and should play a humongous role in correcting the ecosystem’s undervaluation. Fantom could quite easily scale to a $30 billion market cap in 2022.
Go find the next Fantom DeFi gem today!
Author: Surajdeep Singh
Surajdeep Singh is the marketing director at NFT Contemporary and has been working as an IT and blockchain journalist since 2018. He is a contributor to publications including IT Business Edge, Enterprise Networking Planet, eSecurity Planet & Moni Talks and works as a consultant at Drofa Communications Agency.