In recent days, the volume of FTM transactions has skyrocketed and gone up so much that it has managed to surpass some already consolidated cryptocurrencies. This movement draws the attention of investors, check it out with us.
This beginning of the year is showing us a strong retraction in the cryptocurrency markets. From the main crypto, Bitcoin, to the smallest tokens, memes or not, all have suffered rapid and continuous devaluation. True sell-offs have taken place in every crypto ecosystem imaginable. However, some coins stand out in some aspects, we have noticed that, too.
This time, we observed a high volume of trades transacting the FTM token, from the Fantom network. Catapulting it to outrun consolidated currencies. According to information from CoinCheckUp, at the time of writing, FTM is in the fifth position in terms of trading volume in the last 24 hours. Leaving behind BNB, ADA and SOL. In terms of a “race for the first position”, the FTM really took off.
Even if momentarily, occupying the Top 5 in terms of trading volume is not for everyone. FTM just didn’t touch Bitcoin and Ethereum because the main Stablecoins got in the way, and let’s face it, disputing trading volume with the main Stablecoins is still something VERY difficult, for any cryptocurrency.
Talking About the FTM Protocol
Second Documentation from the Fantom Foundation, FTM is the primary token of the Fantom blockchain network.
A token used to secure the network through staking, governance, payments, and fees.
The main utility of the FTM token on the Fantom blockchain is to secure the network through a Proof of Stake system. To participate, validator nodes need to maintain a minimum of 3,175,000 FTM and stakers need to lock their FTM. In exchange for the service, both nodes and punters are rewarded with fees, for periods. In addition to avoiding centralization, the system is also environmentally friendly.
The FTM token is ideal for sending and receiving payments, thanks to the high transfer rate of the Fantom network, fast validation and low fees. On the Fantom blockchain, money transfers take about 1 second and cost about $0.0000001. Yes, that’s a lot of leading zeros, really. We can even say that it is a “symbolic” amount.
Governance on the Blockchain
FTM is required for governance on the blockchain. As the Fantom blockchain is a completely decentralized ecosystem with no hierarchy and no leadership, any decision about the network is carried out by “on-chain governance”. With governance, stakeholders can propose and vote on changes and improvements. FTM is the governance token required to participate in the voting process.
The FTM token is used to pay network fees, such as transaction fees and fees for implementing smart contracts, or for creating new networks. Without a minimal barrier, the network would be an easy target for spam, degrading performance and filling the book with useless information. On the Fantom blockchain, the fees are very cheap, but enough to make it extremely expensive for a malicious actor to carry out an attack.
Another Fast Option with Low Fees
We then conclude that, FTM soared in transaction volume, most likely because it is considered an interesting option, in relation to smart contracts. Opposing, in the opinion of investors, to consolidated networks, such as Solana, Ethereum, Avalanche, among others. FTM Soared in the number of transactions because many investors are believing in what it can deliver, in a short time and are “betting their chips on it”.