Tag: Fantom
Fantom DeFi Users Aren’t Spooked by Rocky Market
Key Takeaways
- Fantom’s DeFi ecosystem has soared to new all-time highs in total value locked, trailing only Ethereum and Terra.
- The boom has been fueled in part by Andre Cronje and Daniele Sestagalli’s forthcoming Solidly project.
- Several DAOs have formed in the lead-up to Cronje and Sestagalli’s project launch.
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Fantom, one of the leading Ethereum-compatible smart contract platforms, is experiencing rapid growth in its DeFi ecosystem despite shaky market conditions.
Fantom DeFi Ecosystem Soars
Fantom is on a tear.
The Layer 1 smart contract blockchain’s DeFi ecosystem is growing despite uncertainty following a selloff across the broader crypto market.
According to DeFi Llama, Fantom’s 129 DeFi platforms have attracted $12.35 billion in total value locked, placing the Layer 1 chain third in total value locked behind Ethereum and Terra.
Fantom is an outlier to other leading Layer 1 blockchains as its total value locked has jumped over 50% over the last week. The total value locked for other networks like Ethereum, Avalanche, Solana, and Harmony has plummeted in the same period. The DeFi dip can be attributed partly to market volatility; ETH and other assets have followed Big Tech stocks into the red over the last week amid fears over the
Fantom’s DeFi ecosystem has also been boosted by the upcoming launch of a new project from Andre Cronje and Daniele Sestagalli. Solidly, is it’s been dubbed, is set to launch imminently. The project will feature an automated market market that will prioritize compatibility with other protocols. It will also utilize a “ve(3,3)” tokenomics model, operating a vote escrow model popularized by Curve Finance, as well as a (3,3) staking mechanism that OlympusDAO pioneered in 2021.
The project will let users deposit a base token in exchange for a non-transferable token in order to receive transferable token rewards. Users who lock up tokens will receive an NFT.
Similar to other projects Cronje has been involved with, Solidly is taking a “fair launch” strategy. Two million tokens will be distributed as incentives per week, and the rewards will be distributed to the top 20 projects on Fantom by total value locked until voting weight can determine token distribution (there will initially
Two million new tokens will be distributed as incentives per week, and these rewards will be distributed to the top 20 DeFi projects by total value locked on Fantom until voting weight can determine token distribution (no voting will exist initially).
Solidly might be the most anticipated DeFi launch of 2022 so far. In the lead-up, several new projects have emerged on Fantom. veDAO, for example, formed with the specific goal of making it into the top 20 projects on Fantom in order to receive Solidly’s token rewards. DeFi users looking to acquire veDAO’s WEVE token had to engage in yield farming; the protocol now holds over $174 million in locked value.
Going against veDAO’s hyper-focused mission to acquire Solidly’s tokens, another DAO called 0xDAO has formed. 0xDAO bills itself as a “community-centered” project that hopes to bring “long-term value for the entire Fantom ecosystem.” Its fundamental goal is to build decentralized infrastructure that will create a liquidity “free market” on Fantom. 0xDAO already has a total value locked of nearly $4.3 billion after launching this month.
FTM has also fared well relative to the rest of the market over the last 24 hours. Despite suffering from the recent market decline, it’s up 20.5% today, far outpacing every other leading Layer 1 coin.
Disclosure: At the time of writing, the author of this feature owned BTC, ETH, and several other cryptocurrencies. Andre Cronje is an equity holder in Crypto Briefing.
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Andre Cronje Teases Features for Ve(3,3) on Fantom
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Here’s What’s Ahead for Ethereum Rivals Cardano (ADA), Fantom (FTM) and Harmony (ONE), According to Analyst Michaël van de Poppe
Popular crypto strategist Michaël van de Poppe is mapping out what he thinks is in store for Ethereum competitors Cardano (ADA), Fantom (FTM) and Harmony (ONE).
The crypto analyst and trader tells his 564,600 Twitter followers that smart contract platform Cardano must reclaim a key level to ignite a 25% rally.
“This one made a fake breakout above $1.50. Dumped back towards the range. If it wants to retest the $1.50 area, then I’d be looking at a flip and reclaim of $1.20 first.”
At time of writing, Cardano is exchanging hands at $1.04.
Next up is Fantom, a highly scalable blockchain platform for decentralized finance (DeFi), decentralized applications (DApps) and enterprise applications. Trading against Bitcoin (BTC), Van de Poppe says the FTM/BTC pair managed to hold support at 0.00005 BTC ($1.81) and must now take out resistance at 0.000068 BTC ($2.48) to launch a breakout rally.
“Crucial area to hold to avoid a nuke was the 6800 sats zone. Didn’t hold, nuke towards support and a strong bounce from that region already. Support between 5100-5400 sats (0.00005 BTC – 0.000054 BTC), resistance at 6800 (0.000068 BTC) sats. If that breaks -> new impulse wave.”
At time of writing, the FTM/BTC pair is trading at 0.00006 BTC or $2.17.
The last coin on the trader’s radar is Harmony, a blockchain focused on powering a decentralized economy. According to Van de Poppe, Harmony may be positioning for a bounce against Bitcoin (ONE/BTC) after respecting support at 0.000005 BTC or $0.18.
“If you’d want to enter ONE, this is probably the region you’ve been looking for.”
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Bitcoin Rebounds 10% From Yesterday’s Bottom, Crypto Markets Gain $120B (Market Watch)
The past 24 hours were quite turbulent throughout the cryptocurrency field, but this time around, bulls managed to catch a break and recovered some of the previous losses. The total market capitalization increased by about $120 billion since yesterday’s bottom as many coins managed to bounce back.
Bitcoin Price Bounces 10%
Right off the bat, it’s worth looking into Bitcoin’s price, which went on a massive roller coaster throughout the past 24 hours.
Yesterday, the cryptocurrency plunged in a vicious downwards spiral and ended up hitting a price slightly below $33K (on Binance). This was followed by the entire market. However, bulls stepped in and defended the level with multiple consecutive hourly candles, which ultimately led the price to reach $37,550.
At the time of this writing, Bitcoin’s price hovers around $36K, which is an estimated 10% increase since yesterday’s bottom. Whether or not this is some sort of a relief rally or the beginning of a recovery, we have yet to see.
Total Market Cap Gains $120 Billion
With the bounce in BTC came the overall market recovery as the total capitalization increased by about $120 billion throughout the past 24 hours.
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This came on the back of considerable gains coming from leading altcoins such as Solana, which is up 9% in the past 24 hours, much like Polkadot (DOT).
As seen in the above heatmap, the majority of the market is in the green today, trying to patch the wounds from the past few days. Some of the more notable gainers include Fantom, which is up over 16%, ATOM – up 18%, and so forth.
On the other hand, there are cryptocurrencies like DASH, as well as CVX, which failed to chart any considerable increases and are slightly down or breakeven compared to 24 hours ago.
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Cryptocurrency charts by TradingView.
Fantom Network’s DeFi Ecosystem Is Now Crypto’s Third-Largest
Top 5 cryptocurrencies to watch this week: BTC, LUNA, ATOM, ACH*, FTM
Bitcoin (BTC) fell close to $34,000 on Jan. 21, which reflects a 50% decline from the $69,000 all-time high made on Nov. 10, 2021. Altcoins also could not buck the trend and faced intense selling pressure, which pulled the total crypto market capitalization to $1.6 trillion, a 46% decline from its November 2021 all-time high near $3 trillion.
It is not only the crypto markets that are facing selling by investors. The S&P 500 has also plummeted 8% year-to-date. However, gold has outperformed and risen about 1.76% during the period, cementing its billing as a safe haven asset.
Several retail traders who purchased Bitcoin near its all-time high are voicing their concerns on social media. However, El Salvador’s President Nayib Bukele does not seem to be worried by the recent fall as he recently announced a purchase of 410 Bitcoin at an average price of roughly $36,585 per coin.
Could Bitcoin and altcoins witness a bounce after the recent carnage? Let’s study the charts of the top-5 cryptocurrencies that may outperform if a relief rally starts.
BTC/USDT
Bitcoin plunged below the $39,600 to $37,332. support zone on Jan. 21, indicating panic selling. The selling continued on Jan. 22 and the price dipped to $34,008.
The sharp fall of the past few days has pulled the relative strength index (RSI) near the 20 level, suggesting that the selling may have been overdone in the short term. Usually, such oversold levels are followed by a consolidation or relief rally.
Recovery attempts are likely to face strong resistance in the overhead zone. If the $37,332 to $39,600 zone flips into resistance, it will signal that the sentiment remains negative and traders are selling on rallies.
The bears will then attempt to resume the downtrend and sink the BTC/USDT pair to the major support at $30,000. A break and close above the 20-day exponential moving average ($41,427) will be the first indication that bears may be losing their grip.
The 4-hour chart shows that the pair is trading inside a descending channel pattern. The bears pulled the price below the channel but have not been able to sustain the lower levels. This suggests strong buying by the bulls who have pushed the price back into the channel.
The pair could rise to the 20-EMA where the bears may again pose a stiff challenge. If the price turns down from this resistance and plummets below $34,008, the selling could intensify. Conversely, a break above the 20-EMA could open the doors for a possible rise to the resistance line of the channel.
LUNA/USDT
Terra’s LUNA token has been trading inside a descending channel for the past few days. The price dropped to the support line of the channel on Jan. 22 but the bulls purchased this dip aggressively as seen from the long tail on the day’s candlestick.
The LUNA/USDT pair could attempt a pullback to the moving averages and then to the downtrend line of the channel. If bulls propel the price above the channel, the pair could rise toward $87.90 and later to $93.81.
Contrary to this assumption, if the price turns down from the current level or the moving averages, it will suggest that bears are selling on every minor rally. The pair could then retest the support line of the channel. A break below this support could accelerate the selling.
The 4-hour chart shows that the relief rally has reached the 20-EMA which is an important level to watch out for. The marginally downsloping 20-EMA and RSI just below the midpoint indicate a minor advantage to bears.
If bulls drive the price above the 20-EMA, the pair could attempt a rally toward the downtrend line of the channel. Alternatively, if the price turns down from the current level, the bears will fancy their chances and strive to pull the pair to the support line of the channel.
ATOM/USDT
Cosmos (ATOM) turned down from the overhead resistance at $40 on Jan. 17 and plummeted to the 200-day simple moving average ($27.57) on Jan. 22.
The ATOM/USDT pair has rebounded sharply off the 200-day SMA, suggesting that bulls are defending this level aggressively. The buyers will now try to push the price to the 20-day EMA ($35.91).
A break and close above this level could indicate that the correction may be over. The pair could then rally to the critical overhead resistance at $44.80.
This positive view will invalidate if the price turns down from the current level or the 20-day EMA and breaks below the 200-day SMA. Such a move could open the door for a possible drop to $20.
The 4-hour chart shows a double top formation, which completed on a break and close below $34. This topping out pattern has a target objective of $23.20 and the pair plunged to an intraday low at $27.31.
The relief rally from the lower levels is facing stiff resistance at the breakdown level at $34. If bulls push and sustain the price above this resistance, the pair could rise to the downtrend line. A break and close above this line will suggest a possible change in trend.
Related: How to pick or analyze altcoins?
ACH/USDT
Alchemy Pay (ACH) aims to bridge the gap between the crypto and fiat world by achieving seamless transactions between the two economies. Its recent partnership with MEXC Global will provide users with several payment options in Japan, Korea, and Indonesia.
Alchemy Pay also teamed up with Algorand and Avalanche to bring direct fiat payment channels such as Visa, Mastercard, PayPal and several local payment channels to their network.
A new partnership with NIUM will help Alchemy Pay lower costs for its clients in the 190+ countries where NIUM operates. NIUM’s licences in financially important regions such as the United Kingdom, Europe, U.S., Singapore, Hong Kong and Australia, will assist Alchemy Pay in penetrating these markets.
The network added support to Dai after a new collaboration with MakerDAO and also announced a partnership with IoTeX (IOTX). The integration enables IOTX to be used for business-to-business (B2B) or customer-to-business (C2B) payments in several parts of the world.
The project’s multiple partnerships have helped it to expand its support to more than 70 countries with 300 payment channels reaching more than 2 million merchants. ACH was also listed on Binance exchange on Jan. 10, making it easier for a larger pool of traders to transact the coin
ACH has been steadily declining since hitting an all-time high in August 2021. This suggests that traders have been booking profits on rallies.
THE ACH/USDT pair plunged below the strong support zone at $0.056 to $0.045 on Jan. 21, but a minor positive is that bears could not build upon this advantage. This indicates strong demand at lower levels.
If buyers push the price back above the overhead zone, several aggressive bears who may have sold recently may get trapped. This could result in a short squeeze which may push the pair to the downtrend line of the descending triangle. The bullish momentum could pick up on a break and close above the triangle.
On the other hand, if the price turns down from the overhead zone, it will suggest a change in sentiment from buy on dips to sell on rallies. The bears will then attempt to sink the price below $0.03 and resume the downtrend.
FTM/USDT
Fantom (FTM) broke above the $3.17 overhead resistance on Jan. 16 but could not clear the next hurdle at $3.48. This may have attracted profit-booking by traders, resulting in a sharp pullback.
The bears pulled the price below the 50-day SMA ($2.14) on Jan. 22 but could not sink the FTM/USDT pair to the 200-day SMA ($1.57). Strong buying by the bulls has pushed the pair back above the 50-day SMA.
The bulls will now try to push and sustain the price above the 20-day EMA. If they manage to do that, the pair could retest the overhead zone.
Conversely, if the price turns down from the current level or the 20-day EMA, it will suggest that traders are selling on rallies. The bears will then try to pull the pair below the 200-day SMA.
The 4-hour chart shows the formation of a head-and-shoulders pattern, which had a target objective at $1.70. The pair bounced from $1.77 and has reached the 20-EMA, which is acting as a stiff resistance.
If the price turns down from the current level, the bears will try to resume the downtrend and sink the pair to $1.30. Conversely, if the price rises and sustains above the 20-EMA, the pair could rally to the neckline of the bearish setup and then rise to $3.00.
LEO/USD
UNUS SED LEO (LEO) plunged and closed below the ascending channel pattern on Jan.21 but a minor positive is that bulls bought at lower levels and are attempting to push the price back above the moving averages.
If they succeed, the LEO/USD pair could retest the overhead resistance at $3.92. A break and close above this level could indicate the resumption of the uptrend. The pair could then rise to the resistance line of the channel.
If bulls thrust the price above the channel, the pair could pick up momentum. This positive view will invalidate if the price turns down from the current level and breaks below $3.37. The pair could then drop to the strong support at the 200-day SMA ($3.19).
The 4-hour chart shows that bulls repeatedly attempted to push and sustain the price above the overhead resistance at $3.85 but failed. This may have attracted profit-booking, resulting in a decline to the strong support at $3.40.
The sharp rebound off $3.40 indicates aggressive buying at the level. The bulls will now try to push the price to $3.85. If bulls clear the overhead zone between $3.85 to $3.92, the uptrend could resume. This positive view will invalidate on a break and close below $3.40.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
*Disclaimer: ACH is a featured cryptocurrency from one of Cointelegraph’s sponsors, its inclusion did not affect this price analysis.
Here Comes Andre and Dani’s New DeFi Play
A Beginner’s Guide to Fantom’s DeFi Ecosystem
Key Takeaways
- Fantom is an Ethereum-compatible Layer 1 chain with over $8 billion locked in its DeFi protocols.
- It hosts a thriving DeFi ecosystem, including several decentralized exchanges and yield farming protocols.
- DeFi on Fantom looks set to continue growing, with several highly-anticipated launches on the horizon.
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Fantom is a Layer 1, Proof-of-Stake network with low transaction costs and fast finality. Since launching in 2019, Fantom has built up a respectable DeFi ecosystem of both homegrown and Ethereum-native applications.
What Is Fantom?
Fantom is one of several alternative Layer 1 blockchains that surged in popularity in 2021. Thanks to it low transaction costs, the network has attracted many users and developers that are priced out of using Ethereum due to its high gas fees.
The Fantom base chain uses Directed Acyclic Graphs to achieve consensus. It secures an additional execution layer called Fantom Opera, which handles more specific and complex functions. Today, Fantom Opera is what most people are referring to when they talk about Fantom and is the home of the blockchain’s DeFi ecosystem.
Opera is the first execution layer built on Fantom and is compatible with the Ethereum Virtual Machine. This means that developers can write, deploy, and run smart contracts written in solidity on Fantom, just as they would on Ethereum. Fantom’s compatibility with Ethereum has also helped foster development as builders can easily port applications over from Ethereum to Fantom with few changes to the underlying code.
Similar to other Layer 1 blockchains, Fantom uses a Proof-of-Stake validation mechanism. There is no minimum stake amount: users can earn rewards with only 1 FTM. However, those staking lower amounts must delegate their tokens to a validator node. The minimum stake to run a node is currently 500,000 FTM.
Fantom validation mechanism is high-speed and leaderless thanks to its Lachesis consensus algorithm. Single validators do not choose which transactions are valid in each block; instead, Fantom uses a network-wide consensus.
By removing leaders, the majority of transaction processing does not rely on the validators that hold the largest number of tokens, as is the case with other Proof-of-Stake chains such as Solana and Avalanche. This increases Fantom’s decentralization and subsequently security by having all validators play an equal role when participating in the consensus protocol.
As Fantom is compatible with Ethereum, it can also be accessed through popular Web3 wallets like MetaMask. Users can simply add the Fantom Opera network to MetaMask to connect to Fantom.
Decentralized Exchanges on Fantom
Fantom currently has two popular decentralized exchanges that let users swap assets and provide liquidity. The most used one of the two is SpookySwap. It’s currently the biggest native DeFi protocol on Fantom with over $1 billion in total value locked.
SpookySwap’s user interface is clean and easy to understand, making it a great place to start exploring the network’s DeFi ecosystem. Swapping works much the same way as it does on other automated market makers: users select the assets they want to swap and the amount they want to swap then make the trade. The SpookySwap trading interface displays useful information such as potential slippage, price impact, and fees before trades are submitted. More advanced users can also create limit orders for asset pairs.
Users can earn SpookySwap’s BOO token and trading fees by providing liquidity to its pools. BOO stakers receive 0.03% of the fees from swaps, so the amount of rewards paid out increases as activity on the protocol does.
But SpookySwap doesn’t stop at trading. The platform has also built a user-friendly interface for Multichain’s Fantom bridge that integrates seamlessly with the exchange. Through the bridge, users can send assets to and from Fantom and several other Ethereum-compatible Layer 1 and Layer 2 networks, including Binance Smart Chain, Polygon, Arbitrum, and Avalanche.
Fantom’s second-biggest exchange, SpiritSwap, provides similar functionality to SpookySwap and has also integrated Multichain’s Fantom bridge. However, SpritSwap’s key innovation is its inSPIRIT token system.
Liquidity providers that earn the exchange’s native SPIRIT token can lock it on the protocol and receive inSPIRIT tokens. inSPIRIT holders earn a portion of the exchange’s fees, just like SpookySwap’s BOO token. Notably, they can also vote on which liquidity pools receive boosted yields.
SpiritSwap’s vesting system is similar to the one used by Ethereum’s biggest DeFi protocol, Curve Finance. The longer holders choose to lock up their SPIRIT tokens, the more inSPIRIT tokens they will be allocated, giving them more voting power. This means SPIRIT holders are incentivized lock up their tokens for longer periods to gain more influence over which yield farms get boosted returns.
Lending and Borrowing
Moving on from exchanges, the next key piece of Fantom’s DeFi ecosystem is its range of lending and borrowing platforms. The biggest “DeFi bank” on Fantom is Geist Finance. Launched in October 2021, Geist Finance is a newer entrant into Fantom’s DeFi scene but has quickly gained traction. Geist functions similarly to the Ethereum-native lending protocols Compound and Aave and has become Fantom’s third-biggest protocol thanks to its innovative token reward program.
Geist has successfully maintained attractive yields for users by offering rewards in its native token, GEIST. However, unlike other protocols that allow liquidity miners to sell their token rewards immediately, Geist has a three-month vesting period on all GEIST tokens earned. During this period, holders start earning a share of the protocol’s revenue as if their tokens were staked. Tokens can be withdrawn at any time within the three-month vesting period, but holders will forfeit 50% of their total tokens accumulated. These forfeited tokens are then distributed to users who choose to lock up their GEIST for the full three months, benefitting long-term holders even more.
Not far behind Geist Finance is another lending and borrowing platform called Scream. Paying homage to the popular horror movie series of the same name, Scream doesn’t differ much from Geist in its functionality. However, the protocol does support lending and borrowing for a wider range of assets including several smaller stablecoins such as FRAX, DOLA, and TUSD.
Where Scream does divert from Geist is in its token reward structure. It’s currently in the process of upgrading its SCREAM token staking system to divert 70% of all protocol revenue to token stakers, and also plans to send the remaining 30% to a newly-formed DAO. Just over half of the DAO’s funds will be held in reserve as insurance in the case of a catastrophic event such as a token bug or hack. The other half will be allocated to financing new products, configuring incentives, and token buy-backs, subject to community voting.
Another notable lending platform on Fantom is Tarot, the 14th-ranked protocol on the network. Tarot’s niche is providing leveraged yield farming, allowing liquidity providers to borrow assets from lenders to leverage up the yields generated by their positions. While this strategy can produce big returns, it also subjects participants to the risk of having their positions liquidated.
However, for those who don’t want to take on additional risk, Tarot allows users to deposit their assets for other users to put to work via leveraged strategies. In doing so, depositors can generate handsome returns on single assets without having to worry about being liquidated if the market moves against them. However, if utilization of lent tokens is high, there can be a delay period to withdraw assets. This means that locking tokens up is a risk for users who may need fast access to their assets.
The Future of DeFi on Fantom
The Fantom ecosystem is growing at a rapid rate, with several upcoming projects set to draw even more liquidity to the chain. One highly-anticipated feature set to hit Fantom is the so-called “degenbox” strategy from Daniele Sestagalli’s Abracadabra.Money.
The strategy lets users deposit the Terra network’s UST stablecoin to borrow Abracadabra’s MIM stablecoin. As UST and MIM are both stable assets, the borrowing position can be leveraged up with a reduced risk of liquidation compared to borrowing against volatile assets. However, the degenbox strategy relies on UST maintaining its $1 peg—if UST drops significantly below $1, leveraged positions on Abracadabra will be liquidated.
Despite the risks involved, the degenbox strategy has proven popular with DeFi users on Ethereum. The strategy can yield between 40 and 110% returns on stablecoins depending on the amount of leverage used. While Abracadabra has already launched on Fantom, it currently only lets users borrow MIM against FTM tokens. However, it’s widely believed that Abracadabra plans to port over the degenbox strategy once Terra integrates UST with the Fantom network.
Elsewhere, the popular “DeFi architect” Andre Cronje is building a new DeFi protocol on Fantom with help from Sestagalli. The offering will combine several successful DeFi features from existing protocols, such as a token vesting system similar to Curve Finance and permissionless support for protocol bribes, a practice made popular by Convex Finance.
In a recent blog post, Cronje confirmed that the new protocol would act as an automated market maker for protocols, allowing them to bootstrap liquidity and easily offer token incentives to create a more efficient DeFi ecosystem on Fantom.
In order to create a fair launch for the new protocol, an initial distribution will be allocated to the top 20 DeFi projects on Fantom with the highest total value locked. Each protocol will decide how to distribute tokens to its users in a bid to ensure that tokens go to the most active and involved DeFi users on the network.
Fantom has already attracted over $8 billion across more than 100 protocols with a solid foundation of token exchanges and lending platforms. Thanks to its Ethereum compatibility, an increasing number of developers and users are choosing Fantom to build their protocols and deploy their assets. The network’s recent growth backs up this trend. Fantom’s total value locked has increased 109% over the past month and shows no signs of slowing down.
Disclosure: At the time of writing this feature, the author owned FTM, ETH, and several other cryptocurrencies. Andre Cronje is an equity holder in Crypto Briefing.
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Andre Cronje Teases Features for Ve(3,3) on Fantom
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Ethereum (ETH) Has Eight Main Competitors, According to InvestAnswers – Here Are His Picks
A popular crypto analyst is looking at how several Ethereum (ETH) challengers stack up against the leading smart contract platform.
In a new Q&A session, the host of financial education YouTube channel InvestAnswers tells his 401,000 subscribers that he does not doubt Ethereum remains the dominant force with which all competitors must contend.
“As I always say, Ethereum is the dominant 800-pound gorilla. No ifs, ands, or buts.
Everything runs off Ethereum – but other players are chipping away.”
The analyst cites several reasons why he thinks decentralized finance (DeFi) protocol Terra (LUNA) and smart contract platform Solana (SOL) top the list of significant Ethereum alternatives.
“When you look at the USP, which is unique selling proposition, plus team, plus technology, plus community, Luna and Solana win the day… Those four characteristics are key to evaluating [projects].”
Another area of interest for the InvestAnswers host involves the incentives and momentum surrounding a crypto project. He says layer-1 smart contract platform Avalanche (AVAX) and enterprise-grade DeFi platform Fantom (FTM) both meet these criteria.
“The next two are Avalanche and Fantom. They stand out because of incentives and momentum.
Crypto is all about momentum. You’ve got to follow the heat. Where all the flies go, you’ve go to be…
Fantom has incentives that drive momentum. For example, loan to value (LTV), that’s why the LTV is exploding. You’ve got to look behind the curtain to find out exactly what’s going on.”
The YouTube personality next looks at multi-chained scaling solution Polygon (MATIC) and decentralized digital asset exchange Binance Smart Chain, powered by Binance Coin (BNB). He thinks these Ethereum competitors might be at risk of falling by the wayside – and each for very different reasons.
“Under threat, you could argue that Polygon could be under threat, not only from… it’s amazing how the whale concentration all feeds in and supports this narrative to some extent.
And Binance Smart Chain because it’s so centralized.”
Last on the list are the wildcards: cross-chain interoperability protocol Polkadot (DOT) and scalable decentralized blockchain platform Cardano (ADA).
“And then you have the wildcards, Polkadot and Cardano. Both had sucky years over the last 12 months.
Cardano did move a little bit today, which is great, but I hope it gets to three bucks quick.”
I
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Crypto Strategist Predicts Breakout for Ethereum Challenger Fantom (FTM), Says Solana (SOL) Primed To Rally
A popular crypto analyst and trader is predicting a strong breakout for Ethereum competitor Fantom (FTM) and says that another ETH rival is gearing up to rally.
Crypto strategist Altcoin Sherpa tells his 165,100 Twitter followers that Fantom, a highly scalable blockchain for enterprises, is threatening to take out a massive resistance area above $3.00 en route to a fresh all-time high.
“This is going to break soon. I don’t know when or how but this is a bull flag in my opinion. Too strong of fundamentals right now… $3.50 is next up in my opinion. Strooooong coin.”
At time of writing, FTM is exchanging hands at $3.24, up nearly 10% in the last 24 hours.
Next up is Solana (SOL), a blockchain focused on being scalable while remaining secure and decentralized. Altcoin Sherpa says that SOL looks ready to ignite a rally after respecting a key support level.
“SOL: seems like this current area was support; makes sense given it’s the 200-day exponential moving average and the last area of true consolidation in September. Expecting at least a lower high to $170.”
Another coin on Altcoin Sherpa’s list is Harmony (ONE), a blockchain focused on powering a decentralized economy. According to the crypto analyst, Harmony is one resistance away from rallying to a new all-time high.
“ONE: The levels seem pretty clean to me personally; it just cleared one level of resistance and going for all-time highs. I would personally wait until this dips a bit more before buying, but it looks very, very strong.”
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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