One small-cap token on the Fantom blockchain could be hinting at an incoming FTM ecosystem rally. Covered: Tomb Finance TVL Growth FTM Ecosystem At A Glance It’s been a green day in the markets after enduring a blood-red weekend, and the Fantom (FTM) ecosystem appears to be showing some early signs of life following the […] The post Fantom DeFi Protocol Balloons In Total Value Locked appeared first on CryptosRus.

Fantom DeFi Protocol Balloons In Total Value Locked

One small-cap token on the Fantom blockchain could be hinting at an incoming FTM ecosystem rally.

Covered:

  • Tomb Finance TVL Growth
  • FTM Ecosystem At A Glance

It’s been a green day in the markets after enduring a blood-red weekend, and the Fantom (FTM) ecosystem appears to be showing some early signs of life following the market-wide sell-off. One particular altcoin within the FTM network saw millions of dollars pour into the ecosystem over the past couple of weeks.

RECOMMENDED: WHAT IS FANTOM?

Tomb Finance TVL Growth

Tomb Finance is a decentralized finance (DeFi) protocol on Fantom that allows users to stake tokens or provide liquidity to earn yield on their assets. On November 23rd, the token began skyrocketing in total value locked (TVL) from $325 million to $849 million as of December 3rd, indicating that Fantom users appear to be waking up to the protocol. 

You can see that after the crypto markets crashed, some of the TVL poured back out of Tomb, which is to be expected, however, the TVL quickly resumed its climb afterward. As of today, Tomb Finance currently holds $679 million in TVL, according to DefiLlama.

TOMB is the native token of Tomb Finance that has some unique characteristics. It claims to be the first algorithmic stablecoin on FTM, but it should not be confused with other algorithmic stablecoins such as Terra’s UST. Rather than pegging itself to the US dollar like UST, TOMB attempts to remain pegged to the price of 1 FTM token, meaning that TOMB is an ‘algorithmic stablecoin’ that still fluctuates in price, but remains ‘stable’ relative to FTM.

FTM Ecosystem At A Glance

If you aren’t familiar with Fantom, it is a layer-1 (L1) smart contract platform aiming to solve the ‘blockchain trilemma’ of scalability, security, and decentralization. It uses its own Asynchronous Byzantine Fault Tolerance (aBFT) consensus mechanism, which Fantom claims can provide high levels of scalability and security while providing lightning-fast transaction speeds and very low transaction fees.

Taking a look at the FTM chart, Fantom underwent a substantial 55% sell-off after peaking out at $3.47 in October, however, the sell-off comes after an impressive rally over 2000% from its lows in July.

At the time of writing, Fantom is trading at $1.59.

Despite the large sell-off, Fantom had a huge bounce off of previous support from September around $1.15. The relative strength index (RSI), which measures the overbought and oversold conditions of an asset, has returned to levels not seen since the bottom of the summer bear market. While FTM can certainly drop further, the low RSI readings could be pointing to a reversal in the near term assuming Bitcoin brings some strength back into the bull market.

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