Fantom (FTM): A DAG Platform for DeFi Services

Fantom (FTM): A DAG Platform for DeFi Services

Fantom (FTM) is an innovative smart contract platform for DeFi services that utilizes a directed acyclic graph (DAG) approach.

In this technology, there are no blockchain-type blocks, and all transactions are recorded in the form of vertices placed one above the other. The proof-of-stake algorithm is used in Fantom to confirm every transaction. FTM contributes to addressing the major issues faced by smart contract platforms, including their transaction speed and reliability. Fantom’s developers declare their average transaction speed being about 2 seconds, making it one of the most efficient solutions in the market.

Fantom also offers the extended functionality to various dApps and various digital assets that serve as alternatives to Ethereum. Fantom offers an original approach to balancing scalability, decentralization, and security in an optimal manner.

Fantom offers a scratch-built consensus mechanism that allows introducing an independent layer for transactions, thus achieving the proper compatibility between various transaction platforms.

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Figure 1. Fantom’s Ecosystem; Data source – ByBit Learn

FTM’s current price is $2.23 with a circulating supply of 2.55 billion and a total market capitalization of $5.67 billion, making it the 32nd largest cryptocurrency at the moment. Its maximum supply is 3.175 billion, implying that the current supply can be increased up to 20% within the next few years. Fantom does not closely follow the market patterns of the main cryptocurrencies, such as BTC or ETH.

While one of its peaks corresponds to the period of November characterized by the rapid development of all major cryptocurrencies, the recent peak of January was achieved despite the recession in the crypto market.

These patterns imply that Fantom may present a considerable interest for potential investors in the following months because its market dynamics exceed that of the majority of other cryptocurrencies.

Investing in Fantom (FTM)

Fantom uses an innovative asynchronous Byzantine Fault Tolerant (aBFT) Proof-of-Stake mechanism that maximizes the network efficiency while maintaining its security at the highest possible level.

The leaderless approach enables users to enter and leave the network at any convenient moment without any technological restrictions. Such innovations are appealing to both FTM users and potential investors as Fantom’s solutions create a basis for the successful resolution of the major current DeFi challenges.

From a long-term perspective, Fantom constitutes one of the most promising crypto projects with the potential of entering the top-20 cryptocurrencies by the end of the year.

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Figure 2. FTM’s Price Dynamics (3-Months); Data source – CoinMarketCap

In regards to its short-term dynamics, there are several major support and resistance levels that will determine FTM’s future dynamics in the following months. In particular, the major support level is at the price of $1.25, indicating the strategic level, below which the price will not decline even in the negative scenario.

Another support level is at the price of $1.90, implying the effective short-term support of negative price deviations. Finally, the major resistance level is at the price of $3.25, and after exceeding it, FTM may approach the all-time high level.

Overall, opening a long position appears to be justified for most investors in case they have rationally diversified their crypto investment risks. 

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Dmytro Kharkov

Holding a Master’s Degree in Finance (Distinction), Dmytro Kharkov has proven expertise in Business Analytics, Data Analysis, and the crypto market. He has completed online courses on Machine Learning and Data Science from the leading universities and online schools. He closely monitors the latest crypto analytics insights from Glassnode, IntoTheBlock, Santiment, etc.