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FTM has risen 500% in the last six weeks, and a new $320 million incentive programme might prolong the boom even farther.
The Ethereum network maintains its position as the leading smart contract platform in the blockchain industry. However, the competition is gradually gaining market share because the protocol continues to face hurdles from high costs and network congestion.
Fantom (FTM), a layer one smart contract platform that uses a directed acyclic graph design to solve the challenges of poor transaction speeds and high transaction fees, has gained traction in August.
Data from TradingView shows that since hitting a low of $0.15 on July 20, the price of FTM rocketed 500% to an intraday high of $0.90 on Monday as its 24-hour trading volume exploded by 1,250% to a record $1.26 billion.
Three reasons for the surging momentum in Fantom include the launch of a 370 million FTM incentive program, a significant growth in social media engagement and the continued increase in the amount of value locked on the protocol.
Fantom launches a liquidity incentive program
The biggest momentum boost for Fantom came on Monday with the announcement of a 370 million FTM — $320 million — incentive program, designed to attract new protocols and liquidity to the Fantom ecosystem.
Announcing a 370 million FTM incentive program for builders!
If you’re a protocol team, we’ll reward you for sustaining and increasing your TVL on Fantom.
— Fantom Foundation (@FantomFDN) August 30, 2021
Developers that launch on the Fantom network can apply for Fantom Foundation prizes, which range from 1 million to 5 million FTM depending on the total value locked (TVL) in the protocol in question.
To be eligible for prizes, a protocol must have a TVL that is greater than a time-weighted average (TWA) of $5,000,000 or $100,000,000 for an extended period of time. If the TWA falls below the $5,000,000 requirement at any point, reward distribution will be halted until the TVL reaches the needed minimum once more.
Social media engagements surge in August
Lunar Crush registered Fantom’s building momentum throughout August via social media metrics. The platform showed a 34% increase in social media mentions compared to July; social media engagements also shot up by nearly 96%.
Fantom’s 1-Month activity:
Price $0.50331312 +98.04%
67,305 social mentions +34.08%
95,793,815 social engagements +95.86%
1,660 average daily social contributors +22.24%https://t.co/UNc78mnwoG $ftm #fantom pic.twitter.com/Us6Lz8Mw1A
— LunarCRUSH 🚀 Social Listening for Crypto (@LunarCRUSH) August 28, 2021
On-chain data for the network also showed a steadily increasing engagement rate because the network now has 415,000 unique addresses conducting more than 300,000 transactions per day.
Because of the release of the FTM incentive programme, which has already resulted in a new record high in the number of transactions on the Fantom bridge, these statistics could dramatically climb in the coming weeks and months.
Significant gains in DeFi
The rising TVL of Fantom’s DeFi ecosystem, led by the SpookySwap exchange and its $192 million TVL, is the third cause for the company’s spectacular growth.
According to DeFi Llama data, the total value locked on the Fantom blockchain has already topped $657 million, representing a 19.52 percent growth in the last 24 hours.
The commencement of the Fantom Incentive Program, as seen in the chart above, contributed to a large surge in the TVL on Fantom. However, the network was already showing substantial growth in the statistic before to the program’s start.
Without any additional incentives, Fantom’s TVL increased from $269 million to a peak of $510 million between August 4 and August 23. This growth demonstrates that interest in connecting with the platform has been increasing for several weeks.