Fantom has surpassed BSC’s TVL to become the third-largest Blockchain in DeFi

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Fantom has eclipsed Binance Smart Chain (BSC) to become the third-largest blockchain in decentralized finance, according to DeFiLlama (DeFi). Fantom’s TVL has trounced the entire crypto market in the previous week, increasing more than 60% to US$12.2 billion.

Fantom outperforms expectations

The FTM financing rate on platforms like Binance is becoming negative, according to data from Santiment, an on-chain data source, signifying significant shorts. However, during this dramatic price bounce, these shorts have severely burned their fingers.

In January 2021, Fantom was trading at around $0.026. By November 2021, it had risen to $3.16. The most recent closing price was $2.07 at the time of publication. Fantom is an open-source smart contract blockchain that accounts for 6.15 percent of the $200 billion in DeFi transactions.

Fantom was taken aback by the growth, as the DeFi network had dropped to $7.9 billion just 48 hours before. However, its 129 protocols successfully pushed the envelope, increasing the TVL by 60% in just two days.

Even if the network has been working well, broader market cues have influenced the token’s performance. The altcoin has just managed to stay above the important support level of $1.8902 after a 40.6 percent decrease in five days.

Although yesterday’s green candle showed a 15.8 percent recovery, the charts now show a red candle because FTM was down 8.62 percent at this report.

Finally, Binance is outperformed

Fantom is emerging as a faster competitor to other Ethereum Layer 1s since it employs the DAG-based smart contract framework for DApps. Fantom also touts itself as a more affordable and faster Ethereum Layer 1 alternative.

Fantom, for example, takes only 1 second to send money because transaction costs are as low as $0.0000001. On Ethereum, the average transaction time is 15 seconds, with a $3 transaction cost. Additionally, Fantom’s native token, FTM, can be utilized for various purposes, including staking, payments, and governance.

In DeFi, Binance Smart Chain’s gas cost consumption has been significantly lower than Fantom’s. According to gas trackers, BSC’s usual fees were 5 Gwei, whereas Fantom’s standard fee was close to 807 Gwei.

On the other hand, Fantom’s $0.2 network transaction fees were less than Binance Smart Chain’s $0.32. As a result, investors may be enticed to invest in Fantom, but whatever the case may be, Fantom is seeking to secure its new position.

On Fantom, who is constructing?

On the other hand, experts and investors are optimistic about Fantom’s prospects in 2022. According to Austin Barack of Coinfund, FTM is undervalued. Mr. Barack attributed Fantom’s potential upside to its technological dominance and robust community efforts to rapid dApp adoption.

As of January 2022, Multichain, SpookySwap, and OXDAO are the most popular 128 protocols running on Fantom (FTM).

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