Exploring Fantom (FTM) Success in Q1 2024 ๐
Fantom (FTM), a Layer-1 (L1) protocol, and its native token, FTM, have experienced impressive gains and accomplishments in the first quarter (Q1) of 2024. As a crypto enthusiast, itโs essential to delve into the key highlights and growth trends of Fantom during this period to gain a deeper understanding of its performance in the burgeoning crypto market.
FTM Market Cap Surge: A Boon in Q1
During Q1, Fantomโs circulating market capitalization witnessed a remarkable 101% quarter-over-quarter (QoQ) surge, escalating from $1.3 billion to $2.6 billion. This significant increase propelled Fantom to climb ten spots to the 48th position among all tokens, currently holding the 58th spot. The tokenโs rally spanned two consecutive quarters, resulting in a staggering fourfold surge since the conclusion of Q3 2023.
- The circulating market capitalization of FTM spiked 101% QoQ, reaching $2.6 billion.
- Fantomโs position among tokens improved from 58th to 48th.
- The tokenโs value surged fourfold since the end of Q3 2023.
Revenue Metrics and Activity Trends ๐
Despite a 53% decline in revenue measured in FTM during Q1, translating to 1.8 million FTM, the revenue denominated in USD showcased a 4% QoQ uplift, reaching $1.2 million. This revenue drop was mainly attributed to reduced inscription activity across all smart contract platforms in the first quarter. Nonetheless, Fantom maintained an upward trajectory in average daily transactions, excluding inscription-related activities, exceeding the Q3 average by hitting 247,000 daily transactions. Additionally, daily active addresses rebounded, witnessing a 24% QoQ increase to 40,500 addresses.
- Revenue measured in FTM experienced a 53% QoQ decrease in Q1.
- Revenue denominated in USD saw a 4% QoQ increase, touching $1.2 million.
- Average daily transactions surged to 247,000 in Q1.
- Daily active addresses rose by 24% QoQ to reach 40,500.
Staking and Validator Updates ๐ผ
Noteworthy changes were witnessed in the staking landscape of Fantom during Q1. The staking requirement for Fantom validators was substantially reduced from 500,000 FTM to 50,000 FTM to enhance accessibility. However, the count of active validators remained stagnant at 55. Despite this, the overall amount of FTM staked surged by 17% QoQ, from 1.1 billion to 1.3 billion FTM, culminating in a remarkable 135% QoQ spike in the total dollar value of staked FTM, hitting $1.2 billion by the end of Q1.
- The staking requirement for Fantom validators was slashed from 500,000 FTM to 50,000 FTM.
- The number of active validators remained constant at 55.
- Total FTM staked rose by 17% QoQ, reaching 1.3 billion FTM.
- Total staked FTMโs dollar value surged by 135% QoQ, touching $1.2 billion.
Memecoin Mania Influence on On-Chain Activity ๐ญ
Throughout the initial quarter of the year, Total Value Locked (TVL) denominated in USD witnessed a substantial 59% QoQ increase, ascending from $810.8 million in Q4 to $1.28 billion. Conversely, while TVL denominated in FTM dropped by 21% QoQ, signaling that the upsurge in USD-denominated TVL was partially due to the appreciation of FTMโs price. Fantom experienced a noteworthy 64% QoQ surge in the average daily decentralized exchange (DEX) volume, soaring from $10.2 million to nearly $176.8 million.
- TVL in USD surged by 59% QoQ to $1.28 billion in Q1.
- TVL in FTM dipped by 21% QoQ during the same period.
- Average daily DEX volume spiked by 64% QoQ, reaching almost $176.8 million.
Enhancing Liquidity Post Multichain Bridge Incident ๐
Post an exploit in the Multichain: Fantom Bridge impacting stablecoins on Fantom in Q3 2023, the Fantom Foundation initiated measures to enhance stablecoin liquidity. As of Q1 2024, two independent third-party bridging solutionsโAxelar (axlUSDC and axlUSDT) and LayerZero (lzUSDC and lzUSDT)โhave emerged. USDC remains the primary stablecoin on Fantom, representing 98% of the stablecoin market cap. USDT also observed substantial growth, registering an 86% QoQ increase.
- Two independent third-party bridging solutions, Axelar and LayerZero, were introduced in Q1 2024.
- USDC maintains dominance, constituting 98% of the stablecoin market cap on Fantom.
- USDT witnessed an 86% QoQ surge in Q1.
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