Recap: Fantom Blockchain Q2 Performance Overview 💼
In the second quarter of 2024, the Fantom blockchain experienced a mixture of results, with essential financial indicators cooling off amidst the overall cryptocurrency market downturn. The Fantom Foundation announced its rebranding as Sonic Labs during this period, as reported by data intelligence firm Messari.
FTM Market Cap, Revenue, And Token Economics 🔍
• Fantom’s circulating market cap dropped by 41% quarter-over-quarter (QoQ) from $2.8 billion to $1.7 billion after an impressive performance in Q1. However, the token’s market cap remains 94% higher year-over-year (YoY) compared to the second quarter of 2023.
• Revenue, tracking gas fees collected by the network, decreased by 42% QoQ from 1.8 million FTM to 1.0 million FTM. In terms of USD, revenue fell by 38% QoQ from $1.2 million to $0.8 million.
• Changes to Fantom’s token economics were noted in the report, with the introduction of the Ecosystem Vault and Gas Monetization program in the fourth quarter of 2022, which reduced the transaction fee burn rate from 30% to 5% and reallocated the remaining 25%.
• The circulating supply of FTM reached 2.8 billion by the end of Q2, with an annualized inflation rate of 3%, marking a 25% increase QoQ.
Fantom On-Chain Activity Slows 📉
• Daily transactions on the Fantom blockchain averaged over 223,000 in Q2, marking a 10% decrease QoQ from 247,000. Daily active addresses fell by 21% QoQ to 31,900, but a reversal of this trend was observed towards the end of the quarter.
• New address growth slowed by 47% QoQ, averaging 5,000 new addresses per day. However, there was a positive development in the increase in the number of active validators on the network.
• Following a governance proposal that reduced the staking requirement, active validators grew by 6% QoQ to 58, with 14 having less than 500,000 FTM self-staked.
• Staked FTM increased by 5% QoQ for the second consecutive quarter, reaching 1.3 billion tokens. Nonetheless, the total dollar value of staked FTM dropped by 39% QoQ to $780.4 million due to the token’s price decline.
• Fantom’s total value locked (TVL) in decentralized finance (DeFi) applications decreased by 28% QoQ to $91.2 million, placing it 42nd among blockchain networks. However, TVL denominated in FTM grew by 22% QoQ, indicating capital inflows despite the token’s price dip.
Fantom’s Current Status 📊
• As of now, FTM is trading at $0.3345, reflecting a minimal 1% increase over the last 24 hours. Over the past month, the coin has observed a 27% decline amidst the broader market downturn.
Hot Take: Conclusion and Insights 🚀
In conclusion, the Fantom blockchain saw a mix of results in the second quarter of 2024, with key metrics experiencing fluctuations. Despite the challenges faced during this period, there are positive signs such as an increase in active validators and growing TVL denominated in FTM. As the cryptocurrency market continues to evolve, keeping an eye on Fantom’s developments and performance can provide valuable insights into the broader industry trends.
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