In this educational guide, we’re going to explore the altcoin named Fantom (FTM). We’ll cover its fundamentals and planned roadmap, so you can use it to make your own price prediction.
Fantom is a native Layer-1 blockchain platform, just like Ethereum is its own blockchain, but different in how it works in its consensus and more. Fantom uses a single, independent consensus layer called Lachesis, and the consensus mechanism is called the “Lachesis Protocol.”
Fantom uses an Ethereum Virtual Machine (EVM)-compatible smart contract chain called Opera. Opera’s goal is to host an ecosystem of execution layers and enable fast transactions due to the benefits Lachesis provides in consensus. What makes Fantom unique from other blockchains is its use of Directed Acyclic Graph (DAG) based algorithm as part of the consensus process.
A DAG is just a data modelling tool which allows blockchains to run advanced transactions to organize data in more complex models instead of only being able to send cryptocurrency to one another.
Opera, the EVM-compatible layer, launched in 2019 and uses this unique consensus model to produce new transaction blocks. Even major DeFi applications such as Curve and SushiSwap have made a home for themselves on Fantom Opera. Fantom’s Lachesis protocol can extend to additional layers within the system as well. Fantom also added a bridge to Ethereum to bridge over Ethereum-based (ERC-20) assets as well as Binance-based assets.
As of the time of writing, FTM currently ranks in the #45 of top cryptocurrencies by market capitalization. Let’s explore the value, implementations, and price of Fantom’s native FTM token.
What is Fantom and how does it work?
Fantom functions as an ultra-high speed native blockchain platform that has an Ethereum-compatible layer allowing liquidity and activity from Ethereum and other chains to flow into it. Fantom has a goal of executing 300,000 transactions per second (tps). The Fantom team envisions Fantom being used across a variety of sectors, from smart home systems, to healthcare, and others.
The unique Lachesis consensus protocol of Fantom means that Fantom is:
- Asynchronous: participants may process commands at different times
- Leaderless: no participant plays a leading role in the production of blocks
- Supports one-third of its nodes being faulty (this is called being Byzantine Fault Tolerant)
- Offers transaction finality in as little as 1-2 seconds: this is significantly faster than Ethereum and Bitcoin
Besides this, Fantom has also built a DeFi suite to rival that of Ethereum and other chains throughout 2021. DeFi products on Fantom range from liquid staking, minting synthetic assets, lending and borrowing, and non-custodial trading.
What’s so unique about Fantom as a blockchain overall is its speed and consensus that has effectively “solved” the blockchain scalability trilemma which states that only 2 of 3 conditions can be included in consensus at the same time: scalability, security, and decentralization.
FTM Tokens
The FTM token is used to pay transaction fees and execution fees for smart contracts. They also allow users to vote within Fantom’s on-chain governance system.
Network validators on Fantom must stake FTM to run a node and thereby collect proportional staking rewards, since Fantom is a proof-of-stake (PoS) platform. Users can also delegate their FTM tokens to existing validators and also earn a portion of staking rewards and network fees. The voting power on the network is proportional to the amount of staked FTM, plus delegations.
The FTM token exists as a native token on the Fantom blockchain, as well as a BEP2 (Binance Chain), and ERC-20 token (Ethereum-based token).
Token Distribution
FTM had an initial supply of 3.175 billion at issuance. The entire, fixed supply of FTM was minted at launch.
As of the time of writing, there are 2.55B FTM tokens in the circulating supply (80%).
There exist premined rewards that contribute to emissions of FTM, however the supply is otherwise capped.
The initial token distribution of FTM was as follows:
- 40% of the supply was allocated to Public and Private Sale inventors, including private sale bonuses. These FTM had no vesting schedule in place.
- 15% of the supply was allocated to advisors, with a 3-month lockup period.
- 10% of the supply was allocated to the founding team. This had a 24 month vesting period, with monthly cliffs.
- 3.6% of the supply was allocated to a strategic reserve, with no vesting schedule.
- 31.4% of the supply was allocated for staking rewards and is distributed daily until 2024.
Source: Messari.io
Fantom underwent 4 major funding rounds including a seed sale, 2 private sales, and a public token sale.
Fantom (FTM) Price History & Technical Analysis
As of the time of writing, in March 2022, the price of FTM is at $1.46, with a market capitalization of $3.7 billion USD.
The total value of Fantom’s network is meant to grow as more and more people use the network and add liquidity to its protocols. As there are more transactions on the Fantom network overall, the demand for its native FTM token increases, especially due to its fixed supply.
While address growth alone does not necessarily translate to the growth of users, it is still a way to gauge growth. Metcalfe’s Law states that the value of a network is directly related to the number of users of that network. It’s also good to note that at the time of writing, the majority (80%) of FTM’s supply is already circulating on the open market, meaning there is relatively less supply due to hit the open market in the future.
What Expert Analysts say about Fantom:
- Gov.Capital says, "As per the data analysis of LongForecast, the DeFi token may hit an average price of $3.36 by the end of 2022. They hope that the price may skyrocket to $10.74 by the end of 2025. According to their website, the coin is best suited for long-term investments.”
- Wallet Investor notes, “FTM prices will turn bullish in the short term, breaking several resistance levels. As per their data, the prices will reach as high as $4.041 in a year. On the other hand, the 5-year analysis for FTM/USDT predicts the future price of $12.2. By December 2022, the maximum price is $2.451, with a minimum of $2.131 and an average of $1.823.
The smart contracts platform’s widespread adoption hints at a bullish trajectory for cryptocurrencies in the short term, which is a good outcome from Fantom’s current price. The website’s Fantom price prediction for 2022 December shows an average price of $4.175, a minimum price of $3.753, followed by a maximum of $4.583.
For December 2023, the coin price prognosis reveals an average price of $6.216, a minimum price of $5.408, followed by a maximum price of $7.005.
FTM will have an average price of $10.302, a minimum price of $8.367, followed by a maximum price level of $12.305.” - DigitalCoinPrice says, “FTM’s price prediction 2022 depicts a bullish outburst like any other coin in the DeFi industry. The expected value for 2022 is $3.6, followed by a high of $4.27 for 2023. As multiple decentralized applications find their place on the FTM chain, investments in FTM bags will be a popular investment decision among traders. This indicates an optimistic outcome for Fantom’s price prediction.
The token will end 2024 at $5.4, followed by 6.44 USD for 2025. The price of Fantom will continue to follow a bullish trajectory, ending the year 2028 at 9.44 USD.”
Fantom Partnerships
Fantom has forged some notable partnerships to move forward the growth of its native blockchain platform.
It has a partnership with Chainlink to build secure and scalable DeFi products such as decentralized stablecoins, lending protocols, and synthetic assets. Developers building on Fantom can access Chainlink’s oracle infrastructure. With this partnership and integration, the whole Fantom ecosystem can combine real-time tamper-proof data for on-chain and off-chain assets.
Another oracle that Fantom has partnered with is Band Protocol. This additionally allows Fantom developers to benefit from more easily being able to access trustworthy on-chain and off-chain data. Band oracles are already live in Opera mainnet, providing critical data feeds for everything from minting stablecoins, lending protocols, and trading synthetic assets on the Fantom blockchain.
Fantom also has a partnership with blockchain protocol The Graph. Fantom developers can leverage The Graph’s querying of data across several blockchains to access and build with it in turn, as well as to cross swap between Ethereum. Other blockchain project partnerships include Covalent, Ankr, and API3 for oracle data.
Fantom is also partnered with Crypto.com, Travala, Ethereum Classic Labs, Waves, and Gravity, among many others. Crypto project Ren is building cross-chain bridges between Fantom and other blockchains as well.
Fantom also maintains some notable enterprise and government partnerships, such as with the Pakistan Private Educational Institutions Regulatory Authority, the Ministry of Industry of New Technologies of Tajikistan, Royal Star Pharma, Nabros Pharma, and more.
Investors in Fantom include prominent VC firms and crypto-native organizations such as Alameda Research, BlockTower Capital, Elysium, HyperChain Capital, and others.
Fantom Price Prediction: 2022-2026
FTM’s price remained under $1 for most of 2021, until breaking out from that area and reaching a peak of almost $3.5 by October 2021. Since that peak, FTM has created a macro-wedging structure and created support at its previous resistance point at $1.
While the price of FTM has decreased during much of 2022 thus far as a result of the overall bearish price pressure in crypto at the moment, the $1 area continues to hold and FTM’s last all-time-high remains at $3.48.
It is hard to say when this all-time-high will be breached again, but the price on the weekly chart above continues to remain in this macro-wedge structure. It is a great sign that the price has been unable to visit or hold below the area from which it broke out in September 2021.
This means that it is likely that FTM remains above its price of $1 during the remainder of 2022 and continues its bullish price pressure within this macro structure. With expanding DeFi involvement and transaction activity on FTM, as well as more investors getting involved in the Fantom network, the previous all-time-high can certainly be breached before 2026. If the market structure remains unchanged for FTM, we might see it go beyond $3.5 by 2023 or even earlier.
Fantom Price Prediction 2022
With the price continuing to hold well above the 2021 support area of $1, and Fantom’s continued DeFi suite and expansion, Fantom’s growth continues to look extremely positive. This makes analysts predict that Fantom will see above its previous all-time high of $3.48 potentially even during 2022, which may require the crypto market to resume its bullish price action.
Fantom Price Prediction 2023
With the growing necessity for high throughput transactions and utility of DeFi, we expect to see Fantom see above $3.5 during 2023. Although notable crypto DeFi developer Andre Cronje left Fantom recently in March 2022, he noted that “they [the Fantom team] are on the right technology path, and I have no doubts that they will continue to succeed.”
No Fantom projects were terminated and instead are being handled by existing teams. As long as development on Fantom continues as it has, we expect to see Fantom double or triple to a price of $4.5-5 by 2023.
Fantom Price Prediction 2024
The Fantom market capitalization alone remains at only $3.7 billion in March 2022 giving FTM a price of $1.5, and quadruple to a market capitalization of $14.8 billion even seems reasonable with the overall growth of the crypto markets’ market capitalization.
This would make the FTM price reach $6 by 2024 if it happens. This is provided the overall crypto market remains bullish and we can avoid an economic downturn and bear market overall.
Fantom Price Prediction 2025
2025 is still far away at the time of this writing. The continued developmental challenges in blockchain are uncertain to extrapolate that far out, especially when it comes to the competition of various Layer-1 blockchain and EVM-compatible blockchains such as Fantom, given the advancements with Ethereum itself as well.
There is likely room for several blockchains to co-exist at once but the overall economic model and landscape for this is not yet clear as the market is still very nascent. However, the need for greater throughput in blockchains and expanded DeFi utility does not appear to be slowing down anytime soon and this means that Fantom remains a great contender. We predict we will see Fantom at $6 or above by 2025 if this trend keeps up.
Fantom Price Prediction 2026
The crypto market overall could very well be worth $10T in total market capitalization by 2026. Depending on regulations and the overall economic cycles of the economy, we may see Fantom as high as $7.5 by 2026.
None of these predictions are financial advice, and are educated guesses as to where Fantom’s price may be at each time interval. It should be noted that any major financial hack or error could change these predictions.
For example, Fantom’s consensus could be revealed to have some flaw in the future, regulatory laws could put FTM or other areas of crypto in hot water, or the Fantom Foundation and development team could always abandon the project’s development itself. While these are unlikely at this time, they are all possibilities that can affect the price. It should be noted that an overall economic contraction is probably more likely than these, but it is impossible to predict with certainty.
Fantom (FTM): Conclusion Price Prediction
Fantom is a great contender long-term for native Layer-1 blockchain projects that anyone can feel confident investing in and holding longer term, as long as they don’t mind short term price fluctuations.
Fantom has no plans to stop its development and significant crypto, enterprise, and government partnerships, as well as its DeFi product suite which keeps increasing in usage and liquidity compared to Ethereum.
Many investors are hesitant to commit their money into an asset for an extended period of time due to the volatility of the cryptocurrency markets. However, it’s great to see top crypto oracles such as Chainlink and Band Protocol, among others, working and partnering with Fantom, as well as many government organizations worldwide and enterprise partners.
So, there is clearly potential for FTM as a great investment longer term as the network grows.
FAQs
How is Fantom gaining traction?
Many people are interested in Fantom’s price and potential because of its technological advantages as a native Layer-1 blockchain platform, unique consensus model, increasing liquidity and incentives for DeFi, and partnerships with enterprise and government alike.
Investors trust this cryptocurrency and see the value of FTM to continue to expand its development and unique selling propositions. Any cryptocurrency would lose value if no one bought it, and people continued to sell. Even despite 80% of Fantom’s supply being openly circulating on the market as it stands, the price continues to hold above most of 2021’s price ranges. Because the overall market believes in the technology Fantom offers, the price continues to hold and increase.
Where can I buy Fantom?
FTM can be bought and traded on all major centralized platforms and exchanges such as Binance, KuCoin, and Crypto.com, and others for all major fiat currencies such as USD, GBP, and EUR, or even for crypto pairs such as trading BTC or ETH for FTM.
In comparison to other cryptocurrencies, how can Fantom secure privacy?
FTM is a public blockchain that is permissionless, meaning anyone can run a node. On Fantom’s Opera Chain, there can be a virtually unlimited number of validators that can secure the network, with a minimum of 1M FTM needed to stake to do so.
Since Fantom is a public blockchain, this means that all transaction data is publicly available on the network for any party to see. Users should therefore not expect complete privacy, especially in the face of advanced blockchain forensics and ability to tie user activity to KYC wallet.
Is it possible to stake Fantom?
Yes, FTM tokens can be staked on validator nodes which requires a minimum stake deposit of 1,000,000 FTM. Users with under 1,000,000 FTM can delegate their FTM to existing validators and earn staking rewards in proportion to their stake. This all helps to secure the Fantom network.
Why is Fantom on the rise?
FTM tokens are on the rise because of its use case as a blockchain network that offers advantages over existing platforms especially in the realm of transactions and for DeFi for the average person being significantly cheaper to transact than on Ethereum.
Plus, Fantom offers strong partnerships, and has advantages offered in its unique consensus model as well as its advantages over other blockchain networks like Bitcoin and Ethereum in transaction throughput and cost.
Is Fantom completely anonymous?
No, all public ledgers are completely visible for all transaction data to all parties on the blockchain. Fantom is a public blockchain, so any party can see all transactions on the public Fantom blockchain explorer, called FTMScan.
Though it may be pseudonymous, meaning the user’s name is not necessarily linked to the transactions or wallet addresses. However, depending on where the user sources their FTM tokens and funds it with fiat, blockchain forensics can easily identify the user’s identity.
Is FTM considered a currency?
Yes. FTM tokens are used for transaction fees on the Fantom network.
Is it possible to generate profits with Fantom?
Yes, it can be if the market remains strong. Fantom is expected to grow over the years and months to come with continued development. However, all investors must do their own research, due diligence, and ensure that they are comfortable with the amount of risk they are taking. All cryptocurrencies are extremely volatile and risky. Always proceed with caution.
Why do people believe in Fantom?
Some analysts believe that FTM offers significant advantages in having solved the classic blockchain scalability trilemma. Fantom appears to offer all three core features: scalability, decentralization, and security. This potentially makes Fantom one of the most advanced native blockchain networks in the modern crypto markets.
Is Fantom supply limited?
Yes, the FTM token supply has a fixed supply of 3.175B FTM tokens. This supply was minted at its entirety at launch and will never increase in its base supply. As such, as the demand for FTM tokens goes up, the price of FTM rises.
How does the Fantom team investigate suspicious or fraudulent transactions?
It is not clear how the Fantom team controls the investigation of fraudulent transactions yet.
While inexpensive to use, the Fantom network is not free. Any transaction requires payment in the form of FTM tokens. This is inherently a deterrent for potential scammers. Thanks to FTMScan, the native blockchain explorer, all participants and associated systems also have a real-time view of transactions used for predictive analysis and detection of fraudulent activities.
DISCLAIMER
This is not financial advice, only observations and speculation. All investors should do their own research and due diligence. The crypto markets are extremely volatile and losing your investment is possible.
