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Fantom Ecosystem - An ideal destination for DeFi users

Publish by Quang Phan at 16 November 2021

It is not surprising to say that Fantom has recently emerged as a phenomenon to compete for a top-ranked position. Although the ecosystem has been quite “silent” for the first 8 months of 2021, Fantom needed only 3 months to show the crypto world a whole different face.

In this article, I will provide you with every information you need to know about the Fantom ecosystem, including:

  • Fantom overview, the FTM coin, and its current situation.
  • The DeFi ecosystem on the Fantom blockchain with deep analysis.
  • Predictions and investment opportunities on Fantom.

Pay close attention to what is coming!

Fantom Overview

What is Fantom?

Fantom is a fast, cheap, scalable, decentralized, and secure blockchain platform. Not only does Fantom support DeFi development, but it also develops for institutional and governmental demands, such as Financial Markets, Institutional Finance, CBDC (Central Bank Digital Currency), Real Estates, Smart Healthcare,...

Countries that have adopted Fantom. Source: Fantomians

To implement noteworthy features such as Speed, Security, Scalability, and Compatibility with EVM, Fantom adopts the use of Lachesis - an innovative aBFT consensus mechanism. The primary properties of this algorithm are:

  • Asynchronous: Users can freely process commands whenever, at will.
  • Leaderless: Noone is single-handedly taking control of the system.
  • Byzantine Fault-Tolerant: Functional even with 1/3 nodes being faulty or malicious.
  • Final: Transactions are confirmed within only 1-2 seconds, which can be considered as instantly.
Comparing Lachesis aBFT to other consensus protocols.

Fantom Coin (FTM) Key Metrics

  • Name: Fantom.
  • Ticker: FTM.
  • Token standard: ERC-20.
  • Token type: Utility, governance.
  • Max supply: 3,175,000,000 FTM.
  • Circulating Supply: 2,541,152,731 FTM.
  • Contract address: 0x4e15361fd6b4bb609fa63c81a2be19d873717870.
  • Market Cap: $7,239,292,010.
  • FDV (Fully Diluted Valuation): $9,045,010,105

Fantom Blockchain statistics

  • Fantom Opera Chain: Dec 27, 2019.
  • TPS: Up to 10,000 TPS.
  • Epoch time: 1-10 secs.
  • Staking Balance: 1,806,075,254.67 FTM.
  • Average Transaction Fee: ≈ $0.0001.
  • Total Validators: 62.
  • Unique Addresses: 1,088,487.
Top-tier blockchain platform comparison. Source: Coin98 Analytics

Fantom current situation

On December 27, 2019, the Fantom Opera Mainnet was released.

Afterwards, the blockchain was gradually developed until the advent of “Fantom DeFi” in Q3 2020. This was the time when the infrastructure and foundational dApps were built. In Q2 2021, some Fantom native protocols like SpookySwap and SpiritSwap were released, creating the first wave of Fantom.

Up to this point, the Fantom ecosystem is pretty well prepared with most DeFi Legos being ready. DeFi on Fantom is being pushed and a lot of exciting things are expected to come up next.

Fantom Ecosystem Overview

Fantom Ecosystem Spotlight

Projects featured in Fantom Ecosystem Spotlight.

On September 6, 2021, Fantom introduced a separate category in its blog: Fantom Ecosystem Spotlight - a program created to enable various Fantom projects to interact directly with the Fantom Foundation, thus forming a close bond between the 3 participants: the Fantom Foundation, the project itself, and its community.

Most recently, Fantom Ecosystem Spotlight featured SpiritSwap - one of the biggest projects on Fantom. As you can see, projects being on the Ecosystem Spotlight are mostly the core legos of the ecosystem: Grim Finance, Scream, SpookySwap, Geist Finance,... and now there is SpiritSwap.

Imagine the next protocols being featured. Will you see them as trustworthy as any other protocol here? If the answer is “yes”, then Fantom Ecosystem Spotlight has shown its efficiency.

You can read the whole article right here.

SpiritSwap is featured in Fantom Ecosystem Spotlight. Source: Fantomians

Fantom Developer Conference

One of the biggest events on Fantom is here. Fantom DC takes place in Abu Dhabi from 25-29 October 2021, where a massive number of founders, developers, influencers,... will gather to talk about the future and upcoming plans for Fantom.

Some of the notable names can be mentioned as CZ (Binance CEO), Andre Cronje (DeFi Architect and Creator), Roger Ver (Bitcoin.com Founder), Harry Yeh (Quantum Fintech group), Micheal Kong (Fantom Foundation CEO),... and many many more.

Fantom Developer Conference expert speakers. Source: Fantomians

So how will this event affect Fantom? First of all, it will be the first step to put Fantom’s name on the map. The conference is supposed to be the place where uniform beliefs, visions, and people gather and spread their words to the crypto community through revolutionary workshops and presentations. People will understand more about Fantom, thus knowing and believing in its process in a more certain way.

Second, as speeches and presentations will be conducted, a lot of information, or should I say, “alpha leaks”, will be given out as well. One of the biggest announcements so far has been Binance supporting Fantom tokens through Binance Cloud, which means getting access to the Fantom ecosystem will be much easier.

The Fantom Developer Conference has created a gigantic hype for the whole Fantom ecosystem. This has been reflected in the price of $FTM: Right before the event takes place, the FTM price has already skyrocketed to $3.46 (+80%), marking a new ATH.

FTM price surge before Fantom DC took place.

Fantom Incentive Program

Fantom announced its incentive program.

Fantom Foundation has recently announced its 370M FTM Incentive Program, which is now worth more than $1B. This amount of money will be used to boost the development of DeFi on Fantom.

Comparing incentive programs of different ecosystems.

Up to this point, various blockchain ecosystems have rolled out their incentive programs. However, with FTM reaching an ATH of $3.44, the value of this program has become the top 1, even eclipsing that of Binance Smart Chain, which is backed by CZ and Binance.

Fantom Ecosystem Analysis

Fantom ecosystem overview. Source: Fantomians

Here is an overview of the Fantom Ecosystem. Early this year, Fantom had less than 50 projects operating. Heading to the end of the year, now Fantom has over 200 projects, revealing how rapidly the ecosystem grows, not only in quantity but also in quality.

Infrastructure

From the beginning, Fantom has spent a really long time preparing for its infrastructure. Infrastructure is an incredibly crucial part of a DeFi ecosystem, whereas no dApp can thrive successfully without the support of infrastructure applications.

A number of infrastructure integrations on Fantom can be listed as:

  • Oracle: Chainlink, Band Protocol, Modefi,...
  • API: The Graph, Covalent, Ankr, API3, Idexo,...
  • Payment: Travala, CryptoFills, Voyager,...
  • Analytics: Nansen, DexTools, FTMscan,...

As we can see, numerous famous names like Chainlink, Band Protocol, The Graph, Nansen,... have supported Fantom. This does not only help develop the whole ecosystem in general, but also show that the Fantom ecosystem is now looking “appealing” enough for big names to pay attention to.

Nansen arrived on Fantom. Source: Fantomians

Wallet

Wallets that support the Fantom Blockchain. Source: Fantomians

Fantom has been supported by a wide range of wallets, some of which are:

  • Coin98 Wallet: Coin98 Wallet supports all coins/tokens on more than 25 blockchain platforms, developed on 4 platforms: the Mobile app (Android and iOS), the Web app, and the Extension.
  • Coinbase: The wallet of Coinbase - one of the largest crypto exchanges.
  • Ledger: One of the world’s best hardware wallets.

At the same time, Fantom token (FTM) has been listed on 40+ crypto exchanges, such as Binance, FTX, and most recently, Kucoin. However, lots of Fantomians are expecting this asset to be listed on Coinbase, as its wallet has already supported Fantom. In this market wave, I believe this news will be announced soon enough.

Kucoin now supports FTM. Source: Fantomians

Bridge

Cross-chain bridges on Fantom. Source: Fantomians

The bridge sector is the next thing that we need to look at when evaluating an ecosystem. To be “open” to the “outer world”, any DeFi ecosystem needs a cross-chain bridge. The development of this segment indicates how prepared the ecosystem is for assets to be transferred from other chains, hence inheriting more cash flow into the ecosystem.

On Fantom, 8 cross-chain bridges have been released, connecting Fantom to Ethereum, Binance Smart Chain, Polygon, Polkadot, Cosmos,... From my perspective, this is more than enough. The most active bridge of all is Anyswap with more than $2.5B TVL - the highest number compared to other protocols.

Stablecoin

Before any DeFi activity can happen, we need Stablecoins. On Fantom, Stablecoins used to be really lacking, as only a small amount of USDC was minted while USDT was wrapped and bridged. There were some native algorithmic Stablecoins, but they were evidently ineffective.

Read more about the importance of Stablecoins here: What is Stablecoin?

FUSD - a native algorithmic Stablecoin, cannot keep its peg.

However, this is no longer the case. Some notable Stablecoins have arrived on Fantom, namely MIM (Abradacabra Money Stablecoin, one of the DeFi 2.0 leading projects), TUSD (True USD, one of the top centralized Stablecoins), indicating that Fantom has realized its existing obstacles and has been trying to tackle the problem.

TUSD came to Fantom. Source: Fantomians

The Stablecoin index is one of the most important indicators to track Fantom. In the past, when the number of Stablecoins on Fantom rose remarkably through Anyswap (a bridge supporting mainly Fantom), the Fantom ecosystem also witnessed tremendous growth.

The number of Stablecoins on Fantom has increased astonishingly.

At this moment, this situation is being repeated. Through Anyswap’s dashboard, it can be clearly seen that Stablecoins on Fantom have increased not only in diversity but also in quantity. This has indicated a continuingly massive growth for Fantom.

AMM

AMM is the next sector that we need to investigate. AMMs create a liquidity pool and attract liquidity into it for the whole ecosystem. As DeFi cannot operate where there is no liquidity, AMM is an indispensable part of a DeFi ecosystem. So how does this sector on Fantom look like?

Also see: What is AMM?

TVL in Fantom reached an ATH of $6B. Source: Fantomians

As I mentioned before, 2 core native AMMs on Fantom - SpookySwap and SpiritSwap, who both received the Fantom Foundation Grant, have been constantly growing in both prices and TVL.

Back to about 6 months ago when both of them were released, most of the TVL within the Fantom ecosystem stayed in Curve Finance - a multichain AMM specialized for Stablecoins. Why is this not a good point?

FTM price and TVL on Fantom in the past. Source: Fantomians

Back then, Fantom was a newborn ecosystem that had just barely built its first DeFi Lego - AMM. The appearance of Curve was necessary to bootstrap the ecosystem’s initial liquidity, but as liquidity of the whole ecosystem came mostly from Ethereum (where Curve was originally deployed), the cash flow inside Fantom was not sustainable and the TVL couldn’t be relative to the growth of the ecosystem.

The result was crystal clear: After a short “ecosystem discovery”, the cash flow in Curve was withdrawn out of Fantom extremely quickly as the Fantom ecosystem didn’t have enough DeFi Legos for users to stay.

Thus, we can conclude that the growth of Curve on Fantom at that moment was actually not a good thing, as it absorbed all the liquidity from SpookySwap and SpiritSwap, at the same time was not sustainable.

Now that the TVL in the ecosystem transferred mostly to SpookySwap and SpiritSwap, we can see how fast Fantom is being developed. Nevertheless, recently on October 26th, we can see a really quick TVL surge in Curve from $183M to more than $600M, while those in native AMMs decreased. But this time, it is a good sign.

Recent tremendous TVL growth in Curve on Fantom.

The difference this time is that the Fantom ecosystem now has enough DeFi Legos to maintain and attract users. The increase in Curve’s TVL this time in fact happened at the same time with a small market correction.

This case shows that investors now don’t want to leave the Fantom ecosystem like before. Instead, they chose to stay in the ecosystem by swapping their assets to Stablecoins (to avoid loss from the market correction) and deposited them into Curve to earn extra yields while waiting for the right moment to continue to “ape in” Fantom.

Not only does this situation show the development of the Fantom ecosystem, it also evidently demonstrates users’ expectations of Fantom continuing its bull run.

Yield Aggregators

Yield Aggregator is the next most developed sector on Fantom, so let’s take a look at the comparison of different available Yield Optimizers.

Comparison between different yield aggregators. Source: Fantomians

Although there are a lot more products that cannot be included in this picture, it can show us a clear overview. The number one Yield Aggregator on Fantom in terms of TVL is currently Beefy Finance, although the protocol is multichain and only has 104 Farm Vaults.

The two native Yield Aggregators, Grim Finance and Reaper Farm, have also shown impressive growth, especially Grim Finance. Grim Finance has now provided users with 472 Farm Vaults, even though its TVL is still pretty low at $100M.

A few months ago, when the TVL in Reaper Farm was about $70M, that in Grim Finance was only $10M. By being constantly active with other projects to support an incredible number of Farm Vaults, Grim Finance has ultimately surpassed Reaper Farm.

Nevertheless, Reaper Farm hasn’t released its token yet. In the future, we can expect that to be the game-changer for Reaper Farm, putting more use cases and incentives to the protocol.

Lending

Lending is the next Lego piece that Fantom needs to finish to receive more cash flow into the ecosystem. Before, Scream was the only native protocol in this sector on Fantom, while Cream - a multichain lending protocol, was the first to exist on the ecosystem.

However, both of them got stuck at less than $100M TVL. This number was too small for an ecosystem to grow further. Then, Geist Finance appeared like the last puzzle that Fantom needed.

After its launch 2 days, the protocol reached $10B Total Market Size. Compared to those 2 lending protocols remaining the number at less than $100M, $10B was too gigantic. There is no doubt that Geist Finance has taken over the lending niche on Fantom ever since then.

With the advent of Geist Finance, the Fantom ecosystem has become much more solid, and has had enough DeFi pieces to prepare for the next big things, which explained the above situation of Curve’s recent TVL increase.

Geist Finance market statistics. Source: Fantomians

Launchpad

Launchpad is a crucial part especially to new DeFi ecosystems as it will help the ecosystem grow by incubating new projects frequently.

Although Fantom has a major number of Launchpads (Fantom Oasis, Presale Money, FTMpad, FantomStarter,...) with FantomStarter even receiving capital supports, none of them has shown substantial growth or notable products.

FantomStarter has not launched any project.

Despite that fact, these projects have been quite active with the community, and have been showing efforts to start launching a number of projects pretty soon.

Hence, it is worth following them to remain updated on this pretty imperative DeFi sector.

NFT

In the NFT sector, Artion is currently the most outstanding project. Artion is an NFT marketplace developed directly by Andre Cronje (a Fantom Foundation member as well as a well-known developer in the crypto space), at the same time supported by the Fantom Foundation.

Artion provides users with various unique features as follows:

  • Super fast transaction speed.
  • Near 0 transaction fees.
  • Costs only 1 FTM to mint NFT.
  • Use ChainLink price feeds.
  • 0 Commission.
The overview of Artion.

Besides Artion, some other NFT Marketplaces can be seen as Ovre, X,... But they have little to no uniqueness compared to Artion. At the same time, all of them are still developing their products, so they need to implement some innovative features if they want to compete with Artion.

One NFT Marketplace that is also working efficiently at the moment is Paintswap, which recently reached 5 million FTM Total Trading Volume, equivalent to approximately $15M.

The reason why I have only mentioned NFT Marketplaces is that most NFTs on Fantom are currently in form of Collectibles. Only a few NFT games have been announced to be released, but still, those are only plans. Therefore, following the movement of NFT Marketplaces is our best decision at the moment.

Rarity - a game also created by Andre Cronje, is an innovative version of the game Loot on Ethereum. Andre Cronje expected the game to explode along with Artion, which explained why he has developed both products at the same time.

Nevertheless, up to this point, the game has been running smoothly but the hype has reduced significantly, and the statistics have not been impressive either.

Rarirty market statistics.

Predictions about the Fantom Ecosystem

If you have read this whole article, I hope that you have received deep insights on Fantom in multiple aspects. Based on the analysis, I have a number of predictions about the Fantom Ecosystem:

  • Although the FTM price has been decreasing, the TVL inside the ecosystem has increased and reached a new ATH.
  • Fantom has prepared enough DeFi Legos to receive more cash flow.
  • The market sentiment is favorable towards another wave of Fantom.

The Fantom ecosystem is highly likely to continue its bull run.

If this is true, what can we expect from Fantom? Some of my beliefs are:

  • GameFi to be developed better. NFT is creating a huge market trend, but Fantom has only adopted NFT Collectibles. This sector is still amazingly potential, and Fantom can take this chance to grow its ecosystem even more. Andre Cronje envisioned an explosive combination of Rarity and Artion with NFT bridges, which has yet to become prominent.
  • DeFi 2.0 to arrive on Fantom. If you have read about DeFi 2.0, you will understand that DeFi 2.0 is changing the way the crypto market works. With projects like Popsicle Ice, Abracadabra Money, Olympus DAO (forks) coming and having come to Fantom, we can expect a lot of interesting things to happen.
  • Andre Cronje bringing the Kp3r ecosystem to Fantom. Andre Cronje has been the inspiration for the whole Fantom ecosystem, not only creating new protocols on Fantom but also bringing his products from Ethereum to Fantom (yEarn, Cream,...). With the innovative and capital-efficient Kp3r ecosystem that he is developing, Andre can bring a breath of fresh air to Fantom with its advent.

Investment opportunities with the Fantom Ecosystem

Invest in Fantom tokens

As Fantom has grown dramatically, it is no longer advisable to buy the native token FTM. However, as a fairly new ecosystem, there are still many chances to invest in tokens within the Fantom ecosystem.

You can invest in Fantom tokens.

Various protocols with low-mid Market Cap can be seen as:

  • AMM: SpookySwap, SpiritSwap, Beethoven-X, Morpheus Swap,...
  • Lending: Scream, Geist Finance,...
  • Yield Aggregators: Grim Finance, ScareCrow Finance, Skull Finance,...

Disclaimer: Research carefully before investing. This is Not Financial Advice.

Skin in the game

How you can earn in Fantom. Source: Fantomians

If you are new to the Fantom ecosystem, you can follow this guide to “skin in the game” on Fantom. Farming comes along with Impermanent Loss and Lending comes with liquidation risks, so make sure you know what you’re doing before investing in your money.

Participate in NFT Marketplaces

Artworks being sold on Artion.

If you are an artist with cool arts, you cannot miss this opportunity. With NFT being the current market trend, you can make significant profits by selling artworks.

By using Artion on Fantom, you only need 1 FTM (~$2.6 at the moment) to mint an NFT, and you don’t have to pay any commission if your artworks are sold successfully, thanks to the feature Artion provides.

Conclusion

To conclude, here are some main points:

  • Fantom is a fast, cheap, scalable, decentralized, and secure blockchain platform that serves both DeFi, institutional and governmental demands.
  • The Fantom ecosystem is now well prepared enough to receive more cash flow and investments.
  • Earning on Fantom now stops only at Borrowing and Yield Farming. Derivatives, NFT, GameFi still need to be developed.
  • Fantom is still expected to continue another market wave, with the expectation of DeFi 2.0 or GameFi possibly emerging.

You’ve been through an article about the Fantom ecosystem. I hope it has helped you in gaining more valuable insights into this blockchain ecosystem and understanding its potential.

If you want to know further about the Fantom ecosystem, please feel free to leave a comment below and join Coin98 Community for further discussions!

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