Despite the sustained price decline across the cryptocurrency markets, Ethereum challenger ‘Fantom’ (FTM) has stood apart from the crowd, reaching new heights in the process.
Fantom Overtakes Avalanche and Solana
The total value locked in Fantom has overtaken leading DeFi chains Avalanche, Solana, and, for a brief moment, the Binance Smart Chain (BSC). TVL represents the total capital held within the smart contracts of a DeFi protocol or DeFi chain.
Fantom currently has 129 protocols on its blockchain, with its TVL currently standing at $13.02 billion, making it the fourth most valuable DeFi chain by this metric. BSC is the third-largest DeFi chain with $13.77 billion locked, Terra is second with $16.16 billion locked. Ethereum currently dominates the DeFi sector with a TVL of $130.1 billion.
The TVL of Fantom: Source: Defillama
Fantom’s rise to the top of the DeFi rankings comes on the back of a 54% rise over the last seven days. throughout the last month, its TVL increased by 170%, and by over 1,200% across the four months prior.
Multichain, a cross-chain swap protocol, is Fantom’s biggest TVL contributor, with over $7.1 billion worth of assets in its smart contracts. 0xDAO ranks second with over $3.99 billion locked, and SpookySwap (a decentralized exchange) holds third place with $1.12 billion in locked value.
Fantom has also surpassed Ethereum in terms of active daily transactions, cementing its place as a top competitor.
On the Flipside
- Although Fantom’s TVL has steadily increased, the value of its native token, FTM, has suffered major price declines, losing 36% in value over the last seven days
The seven day price chart for Fantom (FTM). Source: Tradingview
Why You Should Care
According to multinational investment bank JP Morgan, the rise of scalable DeFi chains like Fantom will see a transition of DeFi dominance away from Ethereum.