- Total transaction fees collected in the past week were the highest since November.
- Despite the promising growth in transactions, network growth was down 74% from the previous month.
Phantoms [FTM] recent efforts to make the network more suitable for dApp deployment are starting to yield results. According to an April 10 tweet, the layer-1 blockchain recorded its six-month high in transaction fees collected.
$FTM just experienced the biggest spike in fees generated in over six months.
Few people understand how much Fantom has for it. pic.twitter.com/KZ0gQ4fKn1
— Emperor Osmo
(@Flowslikeosmo) April 10, 2023
At nearly $180,000, the cumulative value of fees collected in the past week was the highest since November, reflecting growing trading activity on the platform.
The impact of this increase was visible on the price trajectory of native token, FTM, which gained more than 8% last week, per CoinMarketCap.
Read Fantoms [FTM] Price Forecast 2023-24
DeFi-friendly measures
A major boost behind the growth in transactions could come from Fantom’s decentralized finance (DeFi) ecosystem. According to data from DeFiLlamathe largest decentralized exchange (DEX) in the chain, SpookySwap, recorded total value locked (TVL) growth of more than 8% in the past 30 days.
Equalizer Exchange, which contributed over 8% of Fantom’s TVL, was another success story. In the past week, the DEX grew by more than 18%, while its monthly expansion rate was 32.44% at the time of writing. The Equalizer’s twin-AMM design unifies StableSwap pools with standard ‘kxy’ liquidity pools.
Source: DeFiLlama
The layer-1 blockchain has made significant strides in recent times to entice users and projects.
To add another layer of security to DeFi transactions, Fantom integrated the crypto security firm’s Web3 defense suite De.Fi last week. With incidents of hacks constantly increasing on DeFi platforms, the added measure could have boosted transactions on the platform.
Before that, Fantom announced the launch of its Ecosystem Vault, which aimed to support builders by providing a decentralized channel for funding projects and ideas. At the time of writing, the vault was holding up 290,000 FTM Tokens.
The past 2 weeks at Fantom!
#Phantom Ecosystem Vault hits major milestone, now holding 290,000 $FTM
& more!
https://t.co/5iBGyE3i5a pic.twitter.com/OTQLaaREMT
— Fantom Foundation (@FantomFDN) April 10, 2023
Realistic or not, here is the market cap of FTM in terms of BTC
Fantom: Network growth, developer activity is a concern
Despite the promising growth in transactions, the network’s growth was down 74% from the previous month, raising concerns about user adoption. The 30-day MVRV ratio moved into positive territory, meaning that holders could make a profit if they sold their FTM tokens.
Source: Sentiment
FTM’s price action and the growth of the DeFi landscape filled investors with optimism as weighted sentiment remained positive. The worrying factor, however, was the significant drop in development activity, which could delay major upgrades in the coming days. Since March 15, the metric has gone downhill, with no signs of recovery.
Source: Sentiment
