Underlying Fantom fundamentals could indicate that FTM is ready to take off on the back of another crypto market recovery. Covered: Fantom Fundamentals Gaining Strength FTM Price Update Fantom (FTM) is a layer-1 (L1) blockchain that seems to have gotten overlooked in the past few months. As Bitcoin and the crypto markets look for a […] The post Fantom TVL Balloons – What That Means For FTM Token appeared first on CryptosRus.

Fantom TVL Balloons – What That Means For FTM Token

Underlying Fantom fundamentals could indicate that FTM is ready to take off on the back of another crypto market recovery.

Covered:

  • Fantom Fundamentals Gaining Strength
  • FTM Price Update

Fantom (FTM) is a layer-1 (L1) blockchain that seems to have gotten overlooked in the past few months. As Bitcoin and the crypto markets look for a bottom, growing fundamentals on the Fantom blockchain could indicate that the “ghost chain” may be ready to take the spotlight.

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Fantom Fundamentals Gaining Strength

Pretty much every L1 platform on the market is getting its total-value-locked (TVL) drained as investors flock to security in stablecoins. Fantom, however, is a clear outlier, as it seems to be the primary recipient of the capital flowing out of other ecosystems.

Despite the price being down more than 35% from its all-time high of $3.46, Fantom’s TVL is quickly approaching new all-time highs. In the last week, Fantom’s TVL has ballooned more than 22% from under $4.5 billion to $5.68 billion, according to DefiLlama.

Another interesting metric to note is Fantom’s Mcap/TVL ratio, which is currently sitting right at 1. This ratio measures the amount of capital locked in the ecosystem relative to the project’s market cap.

As you can see, other standout performers from the past few months, such as Solana (SOL), Avalanche (AVAX), and Terra (LUNA), are all sitting at much higher Mcap/TVL ratios. The higher the ratio, the more “honestly” (or overvalued) the token is priced. The discrepancy we’re seeing here is telling us that Fantom is undervalued relative to other L1 platforms.

I read a great threat recently from crypto analyst Miles Deutscher (@milesdeutscher) that highlights the underlying fundamentals of Fantom. In this thread, he breaks down the FTM price, assuming its Mcap/TVL ratio matched that of its competition.

From the looks of it, it appears that FTM’s price has quite a ways to climb if the market decides to close the gap between these blockchains.

Another important metric to note is the number of unique addresses joining the Fantom ecosystem. At the time of writing, that number is quickly approaching 1.5 million.

While it may not seem that significant, as pretty much every crypto network is seeing rapid growth, I think Fantom’s number of unique addresses carries a lot more weight because Avalanche has the same amount of users. Fantom has 1.2 million more than Cardano, despite both projects having a market cap that’s 4x larger than Fantom’s.

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FTM Price Update

Taking a look at the charts, Fantom’s strong fundamentals are certainly being reflected in the price. Despite the double-digit percentage drawdowns we’re seeing throughout the crypto market, FTM is putting in double-digit percentage gains.

In the last week, FTM has risen over 55%, currently trading at. $2.23.

Along with a substantial increase in volume, FTM cleanly broke the relative strength index (RSI) downtrend, which measures the level of overbought and oversold levels of an asset. This is telling us that buyers stepped in heavily to take advantage of the most recent correction.

FTM is currently facing strong horizontal resistance at the $2.45 level; a strong break above it could send FTM flying back to its previous all-time high.

The post Fantom TVL Balloons – What That Means For FTM Token appeared first on CryptosRus.