Research Summary
The report provides a comprehensive analysis of Fantom, a Layer-1 protocol focused on fast and cost-efficient transaction execution. It covers the protocol’s performance metrics, recent developments, and future plans. The report also discusses the impact of the Multichain incident, the launch of new dApps, and the introduction of the Fantom Sonic testnet. It further explores the decrease in DeFi TVL, the circulating market cap of FTM, and the staking ratio on Fantom.
Key Takeaways
Fantom’s Performance Metrics
- Address Growth and Active Addresses: The report reveals that the average daily new addresses on Fantom increased by 106% QoQ to 19,300, while the average daily active addresses increased by 3% QoQ to 45,300. This growth was spurred by the launch of new dApps like Estfor Kingdom.
- Gas Monetization Program: The Gas Monetization program distributed over 500,000 FTM to 12 different protocols in August, with an additional 750,000 FTM to be distributed from the Ecosystem Vault in early Q4’23.
- DeFi TVL Decrease: DeFi TVL on Fantom decreased by 69% QoQ to $75 million, primarily due to the Multichain incident in July.
- FTM Market Cap: The circulating market cap of FTM decreased by 35% QoQ to $544 million, with a significant drop occurring in mid-August.
- Staking Ratio: The staking ratio on Fantom decreased by only 0.2% QoQ to 49%, indicating stability in the metric despite the Multichain incident.
Fantom’s Recent Developments
- Fantom Sonic Testnet: Fantom launched its Fantom Sonic testnet, featuring a new virtual machine, database storage, and an optimized Lachesis consensus mechanism. The private testnet achieved 2,000 transactions per second (TPS) with near sub-second time to finality, which is approximately 65x better than Fantom’s current TPS.
- Estfor Kingdom: Estfor Kingdom, a browser-based MMORPG, was launched on August 25, 2023, utilizing the Fantom blockchain for in-game mechanics and NFTs called Heroes. The user base has been steadily growing since its launch, with over 25,000 unique wallets holding at least one Estfor Kingdom Hero NFT by the end of Q3’23.
- Gas Monetization Program: Fantom’s Gas Monetization program aims to reward high-quality applications and offer a sustainable income for developers with a portion of the transaction fees they generate. The Fantom Foundation distributed FTM tokens from the Gas Monetization program to the top 12 earning projects based on a predetermined split.
Fantom’s Future Plans
- Fantom Sonic Mainnet: If the promising results from the private testnet can be replicated, Fantom Sonic will go live on the mainnet in Q1’24 and Q2’24 without forking the network. The Fantom Foundation plans to grant 1 million FTM tokens ($200,000) in Q4’23 to projects building on Sonic to support its launch.
- Developer Incentives: The Fantom Foundation utilizes quadratic funding to match donations made by community members to participating projects in grant rounds, with higher matching funding for projects that receive more unique donations. In the first Gitcoin funding round, over 750,000 FTM tokens were distributed to eligible projects.
Actionable Insights
- Monitor Fantom Sonic’s Progress: The launch of the Fantom Sonic testnet and its potential mainnet launch in Q1’24 and Q2’24 could significantly improve Fantom’s transaction speed and storage efficiency. Stakeholders should monitor the progress of the testnet and the impact of these improvements on Fantom’s performance.
- Investigate the Potential of New dApps: The launch of new dApps like Estfor Kingdom has spurred growth in Fantom’s addresses. Stakeholders should investigate the potential of these dApps and their impact on Fantom’s ecosystem.
- Assess the Impact of the Gas Monetization Program: Fantom’s Gas Monetization program aims to reward high-quality applications and offer a sustainable income for developers. Stakeholders should assess the impact of this program on attracting developers and users to the network.
