Fantom (CRYPTO:FTM) is beneath the radar proper now, however in all probability not for lengthy. The crypto had an incredible run-up final 12 months. The coin bought for $0.02 a 12 months in the past. Now it is buying and selling at $3 a coin.
Fantom is leaping as a result of it is a layer 1 protocol with super-fast speeds, like Solana (CRYPTO:SOL). In 2021, these two cash skyrocketed in worth 14,000% and 11,000%, respectively. Fantom is quite a bit smaller with a market cap of $7 billion versus $43 billion for Solana. I feel a part of that discrepancy is as a result of Solana, in contrast to Fantom, could be purchased and bought on Coinbase (NASDAQ:COIN), the most important crypto change. (You should buy the coin on one other change, Gemini.)
I am anticipating the smaller coin to outperform Solana but once more in 2022. Here is why you may need to personal Fantom coin.
1. It is perhaps the quickest blockchain on the market
Final 12 months the crypto markets went loopy for Ethereum (CRYPTO:ETH) opponents. Ethereum is the most important platform for the crypto universe. However curiosity in crypto is skyrocketing, and the Ethereum community is creaking beneath the pressure. The “gas fees” (the price of validating a transaction on the Ethereum blockchain) hit $300 at one level. Compared, a transaction on Fantom or Solana prices a fraction of a a penny.
Why are the charges so low cost? Velocity. Solana averages 50,000 transactions per second, versus 14 per second on Ethereum. Fantom will not be as quick as Solana, nevertheless it’s nonetheless approach forward of Ethereum; in a check run again in 2018, its blockchain processed 25,000 transactions per second. However Fantom has a reasonably stable declare to being the quickest blockchain for those who have a look at time to finality. That is arguably a very powerful statistic, as that is the second when a transaction has been absolutely validated on the chain. Fantom’s time to finality is a couple of second, versus 13 seconds on Solana and greater than a minute on Ethereum.
Fantom can also be rocking the overall variety of transactions on the blockchain. A 12 months in the past, Fantom averaged of 4,000 transactions a day. Now the community is averaging 750,000 a day. That is an incredible progress charge. Fantom is already fifth within the variety of transactions, and it has zoomed previous a lot larger cash like Avalanche (CRYPTO:AVAX).
2. It is appropriate with Solana and Ethereum
One of many challenges within the blockchain universe is compatibility. It may be onerous to maneuver a digital pockets from one blockchain to a different. So within the blockchain universe — like Silicon Valley — quite a lot of these blockchain networks are frenemies. They’re all competing and need to win. However additionally they should play good and work collectively.
Fantom, like most Ethereum opponents, is appropriate with the Ethereum Digital Machine (EVM). This makes it simpler for engineers skilled with Ethereum to develop decentralized apps (dApps) for the Fantom blockchain. And it makes it straightforward for dApps on the Ethereum blockchain emigrate to the Fantom blockchain to save cash.
Solana is one thing of a maverick in that it is not Ethereum appropriate. That places its blockchain outdoors the Ethereum universe. However what’s fascinating is that Fantom can also be within the Solana ecosystem. That flexibility is a energy. No matter who comes out on high, Ethereum or Solana, Fantom needs to be simply advantageous as a result of it is appropriate with each techniques.
3. Main gamers are backing the coin
Should you’ve executed any crypto investing, you’ve got in all probability heard of Sam Bankman-Fried. He is No. 58 on the Forbes 400 listing with a web price of $26 billion, making him the richest crypto magnate on the listing.
Bankman-Fried made some huge cash by beginning up the crypto buying and selling change FTX (CRYPTO:FTT). However he is additionally a notable (and early) investor in Solana. Bankman-Fried as soon as received in a Twitter combat over the value of the coin. He and a Twitter person named CoinMamba debated the price of the Solana coin at $2, $2.05, and $2.38. Lastly, on Jan. 9, Bankman-Fried tweeted, “I am going to purchase as a lot SOL has you will have, proper now, at $3. Promote me all you need.” The tweet turned well-known because the coin skyrocketed to $149 by the top of the 12 months.
Bankman-Fried can also be a significant backer of Fantom. His agency, Alameda Analysis, purchased $35 million in Fantom coin again in February. This occurred on the identical time that Fantom began to combine its blockchain with the Solana community.
Whereas Bankman-Fried is perhaps the richest backer of Fantom, a very powerful might be Andre Cronje. He is the founding father of Yearn Finance (CRYPTO:YFI) and is likely one of the architects of the decentralized finance (DeFi) revolution. Cronje is a technical advisor to Fantom and helped develop its blockchain. He is already created a non-fungible token (NFT) market on Fantom that is a direct competitor to OpenSea, the most important NFT market. Cronje can also be engaged on a secret mission to be launched on the Fantom blockchain later this 12 months.
Given its assist by main gamers within the business, its wonderful velocity and stratospheric progress charges, and its low valuation versus different main cash, Fantom’s crypto is more likely to soar much more in 2022. Whereas it in all probability will not repeat the 14,000% progress of final 12 months, the upside potential right here remains to be very excessive. I personal this coin and I am shopping for extra.
This text represents the opinion of the author, who could disagree with the “official” suggestion place of a Motley Idiot premium advisory service. We’re motley! Questioning an investing thesis — even one among our personal — helps us all suppose critically about investing and make choices that assist us change into smarter, happier, and richer.