Fantom (CRYPTO:FTM) is underneath the radar proper now, however most likely not for lengthy. The crypto had an incredible run-up final yr. The coin offered for $0.02 a yr 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 so much 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, may be purchased and offered on Coinbase (NASDAQ:COIN), the largest crypto trade. (You should buy the coin on one other trade, Gemini.)
I am anticipating the smaller coin to outperform Solana but once more in 2022. Here is why you may wish to personal Fantom coin.
1. It could be the quickest blockchain on the market
Final yr 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 underneath 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 shouldn’t be as quick as Solana, nevertheless it’s nonetheless manner 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 reasonably stable declare to being the quickest blockchain should you take a look at time to finality. That is arguably crucial 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 entire variety of transactions on the blockchain. A yr in the past, Fantom averaged of 4,000 transactions a day. Now the community is averaging 750,000 a day. That is an incredible development fee. 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 suitable 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 — plenty of these blockchain networks are frenemies. They’re all competing and wish to win. However additionally they should play good and work collectively.
Fantom, like most Ethereum opponents, is suitable 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 simple for dApps on the Ethereum blockchain emigrate to the Fantom blockchain to economize.
Solana is one thing of a maverick in that it isn’t Ethereum suitable. That places its blockchain exterior 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 must be simply effective as a result of it is suitable with each programs.
3. Main gamers are backing the coin
If you happen to’ve performed any crypto investing, you have most likely heard of Sam Bankman-Fried. He is No. 58 on the Forbes 400 record with a internet value of $26 billion, making him the richest crypto magnate on the record.
Bankman-Fried made some huge cash by beginning up the crypto buying and selling trade FTX (CRYPTO:FTT). However he is additionally a notable (and early) investor in Solana. Bankman-Fried as soon as received in a Twitter battle over the worth 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 will purchase as a lot SOL has you could have, proper now, at $3. Promote me all you need.” The tweet turned well-known because the coin skyrocketed to $149 by the tip of the yr.
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 could be the richest backer of Fantom, crucial 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 also be engaged on a secret challenge to be launched on the Fantom blockchain later this yr.
Given its assist by main gamers within the trade, its superb velocity and stratospheric development charges, and its low valuation versus different main cash, Fantom’s crypto is more likely to soar much more in 2022. Whereas it most likely will not repeat the 14,000% development of final yr, 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 might disagree with the “official” suggestion place of a Motley Idiot premium advisory service. We’re motley! Questioning an investing thesis — even one in all our personal — helps us all suppose critically about investing and make selections that assist us turn out to be smarter, happier, and richer.