Fantom’s second-quarter performance revealed mixed results, influenced by the broader cryptocurrency market downturn and the anticipation surrounding the Fantom Foundation’s rebranding to Sonic Labs.
Points
- Fantom’s market cap and revenue faced significant declines, reflecting the cooling market conditions.
- On-chain activity slowed, with daily transactions and active addresses dropping quarter-over-quarter.
- Despite the downturn, Fantom introduced new token economics, showing a strategic shift in its ecosystem.
- The total value locked （TVL） in decentralized finance （DeFi） decreased, but capital inflows in FTM persisted.
- The rebranding to Sonic Labs is a crucial step, with potential long-term impacts on Fantom’s growth trajectory.
Fantom’s performance in Q2 2024 was a tale of contrasts. As the broader cryptocurrency market experienced a downturn, Fantom’s key financial metrics also cooled. This slowdown coincided with the Fantom Foundation’s announcement to rebrand as Sonic Labs, a strategic move aimed at positioning the blockchain for future growth.
FTM Market Cap, Revenue, and Token Economics
Fantom’s circulating market cap fell by 41% quarter-over-quarter （QoQ）, dropping from $2.8 billion to $1.7 billion. This decline, though steep, still left the market cap 94% higher year-over-year （YoY） compared to Q2 2023. Despite this drop, the YoY increase underscores Fantom’s resilience in a volatile market.
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Revenue, a key indicator of network activity through gas fees, saw a 42% decline QoQ, from 1.8 million FTM to 1.0 million FTM. In USD terms, this translated to a 38% drop, with revenue falling from $1.2 million to $0.8 million. This downturn followed a spike in Q3 2023, driven by non-fungible token （NFT） inscriptions. Despite the current dip, Messari’s report suggests a potential rebound as on-chain activity across the crypto space is expected to pick up.
During Q2, Fantom introduced significant changes to its token economics, continuing its strategic evolution. The Ecosystem Vault and Gas Monetization program, launched in Q4 2022, reduced the burn rate of transaction fees from 30% to 5%, reallocating the remaining 25%. By the end of the second quarter, Fantom’s native token, FTM, had a circulating supply of 2.8 billion, with an annualized inflation rate of 3%, marking a 25% QoQ increase.
Fantom On-Chain Activity Slows
On-chain activity on the Fantom network showed signs of slowing down during the second quarter. Daily transactions averaged over 223,000, reflecting a 10% QoQ decrease from 247,000. Similarly, daily active addresses fell by 21% QoQ to 31,900, though there was a noted reversal of this trend towards the quarter’s end.
New address growth also declined, with a 47% drop QoQ, averaging 5,000 new addresses per day. Despite these declines, there were positive developments, such as an increase in the number of active validators on the network. Following a governance proposal that reduced the staking requirement from 500,000 FTM to 50,000 FTM, the number of active validators grew by 6% QoQ to 58, with 14 validators holding less than 500,000 FTM self-staked.
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Staked FTM saw inflows for the second consecutive quarter, increasing by 5% QoQ to 1.3 billion tokens. However, the total dollar value of staked FTM decreased by 39% QoQ to $780.4 million, reflecting the token’s price depreciation.
Fantom’s total value locked （TVL） in decentralized finance （DeFi） applications also decreased by 28% QoQ to $91.2 million, ranking it 42nd among blockchain networks. Interestingly, TVL denominated in FTM increased by 22% QoQ, suggesting continued capital inflows despite the token’s price decline.
At the time of writing, FTM was trading at $0.3345, showing a slight 1% increase over the past 24 hours. However, the coin had dropped by 27% over the past month, mirroring the broader market decline.
解説
- Market Context: The second quarter of 2024 was challenging for the entire cryptocurrency market, with many assets experiencing significant losses. Fantom’s performance reflects this broader trend, but its strategic initiatives, such as the rebranding to Sonic Labs and adjustments to its token economics, indicate a long-term vision.
- Strategic Shifts: The introduction of the Ecosystem Vault and Gas Monetization program highlights Fantom’s efforts to adapt to changing market conditions and optimize its ecosystem. These moves could position Fantom more favorably as market conditions improve.
- Future Outlook: While the current market downturn has impacted Fantom’s metrics, the anticipated rebound in on-chain activity and the strategic changes made could pave the way for recovery. Investors and stakeholders should keep an eye on how these factors play out in the coming quarters.