Research Summary
The report presents a comprehensive analysis of the Fantom network for Q2 2023. Fantom’s average daily active addresses declined by 18%, while new unique addresses grew by 146% QoQ. The growth in new addresses coincided with increased activity on LayerZero and Galxe. Fantom’s average daily transactions have steadily declined over the past year and decreased by 24.4% QoQ. Fantom’s market cap declined 36% QoQ after the SEC took regulatory actions against Coinbase and Binance.US. Proposal 34 was passed to reduce the minimum stake required to validate from 500,000 FTM to 50,000 FTM. Several ecosystem growth initiatives have been established, including Fantom’s recent Ecosystem Vault and Gas Monetization program.
Actionable Insights
- Monitor the growth of new unique addresses: The growth in new addresses coincided with increased activity on LayerZero and Galxe, indicating potential areas of growth.
- Track the decline in daily transactions: The steady decline in daily transactions could be a cause for concern and warrants further investigation.
- Consider the impact of regulatory actions: The SEC’s actions against Coinbase and Binance.US had a significant impact on Fantom’s market cap, even though FTM was not alleged a security.
- Assess the implications of Proposal 34: The reduction in the minimum stake required to validate could increase Fantom’s staking participation and facilitate greater decentralization.
- Explore ecosystem growth initiatives: Fantom’s Ecosystem Vault and Gas Monetization program could provide opportunities for growth and development.
