Fantom (CRYPTO:FTM) is beneath the radar proper now, however in all probability not for lengthy. The crypto had a tremendous 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 loads 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, not like Fantom, may be purchased and bought on Coinbase (NASDAQ:COIN), the largest crypto change. (You should purchase the coin on one other change, Gemini.)
I am anticipating the smaller coin to outperform Solana but once more in 2022. This is why you would possibly 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 just isn’t as quick as Solana, but it surely’s nonetheless approach forward of Ethereum; in a take a look at run again in 2018, its blockchain processed 25,000 transactions per second. However Fantom has a fairly stable declare to being the quickest blockchain for those who take a look at time to finality. That is arguably an important 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 be rocking the full 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 a tremendous development price. Fantom is already fifth within the variety of transactions, and it has zoomed previous a lot greater 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 exhausting to maneuver a digital pockets from one blockchain to a different. So within the blockchain universe — like Silicon Valley — numerous these blockchain networks are frenemies. They’re all competing and need to win. However in addition 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 exterior the Ethereum universe. However what’s fascinating is that Fantom can be within the Solana ecosystem. That flexibility is a power. No matter who comes out on prime, Ethereum or Solana, Fantom ought to be simply advantageous as a result of it is appropriate with each programs.
3. Main gamers are backing the coin
Should you’ve carried out any crypto investing, you have in all probability heard of Sam Bankman-Fried. He is No. 58 on the Forbes 400 checklist with a web value of $26 billion, making him the richest crypto magnate on the checklist.
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 bought in a Twitter combat over the worth of the coin. He and a Twitter person named CoinMamba debated the value 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’ve got, proper now, at $3. Promote me all you need.” The tweet grew to become well-known because the coin skyrocketed to $149 by the top of the 12 months.
Bankman-Fried can be a serious backer of Fantom. His agency, Alameda Analysis, purchased $35 million in Fantom coin again in February. This occurred on the similar time that Fantom began to combine its blockchain with the Solana community.
Whereas Bankman-Fried is perhaps the richest backer of Fantom, an important might be Andre Cronje. He is the founding father of Yearn Finance (CRYPTO:YFI) and is among 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 biggest NFT market. Cronje can be engaged on a secret venture to be launched on the Fantom blockchain later this 12 months.
Given its help by main gamers within the trade, its wonderful pace and stratospheric development charges, and its low valuation versus different main cash, Fantom’s crypto is prone to soar much more in 2022. Whereas it in all probability will not repeat the 14,000% development of final 12 months, the upside potential right here continues 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 assume critically about investing and make selections that assist us turn into smarter, happier, and richer.