Fantom’s Q2 2023 report reveals a decline in daily active addresses but significant growth in new unique addresses, as well as a drop in daily transactions.
Key Points
- Fantom’s daily active addresses declined by 18%, but new unique addresses grew by 146% while daily transactions dropped by 24.4% QoQ.
- Market cap fell by 36% due to regulatory actions against Coinbase and Binance.US by the SEC, impacting market sentiment and TVL.
- Proposal 34 passed to boost staking participation by reducing the minimum stake required to validate on the network.
- Despite challenges, Fantom implemented growth initiatives, saw NFT sales rise by 26% QoQ, and showed significant development activity in unique smart contracts for a promising future.
According to a report released by Messari, Fantom experienced a decline in daily active addresses by 18% quarter-over-quarter (QoQ). However, new unique addresses saw a significant growth of 146% QoQ.
This increase in new addresses coincided with the heightened activity on LayerZero and Galxe. On the downside, daily transactions decreased by 24.4% QoQ.
How was @FantomFDN‘s performance in Q2’23?#Fantom remains committed to its growth strategies and has exciting upgrades in the pipeline including StateDB storage system, Fantom Virtual Machine, & more.
Read the full quarterly by @JamesTrautman_ below. ⬇️https://t.co/r3bjcl5JNh
— Messari (@MessariCrypto) July 31, 2023
Market Cap Declines After Regulatory Actions
Fantom’s market capitalization faced a decline of 36% QoQ. This drop was attributed to regulatory actions taken against major exchanges, Coinbase and Binance.US, by the U.S. Securities and Exchange Commission (SEC).
As a result, there was a negative impact on the overall market sentiment, causing a significant decline in the market cap. Additionally, the Total Value Locked (TVL) in USD dropped by 46% QoQ.
However, the revenue in FTM increased by 35%, and 22% in USD terms. Unfortunately, the network value decreased by 36.1% QoQ.
In an effort to increase staking participation and decentralization, Proposal 34 was passed. This proposal aims to reduce the minimum stake required to validate from 500,000 FTM to 50,000 FTM. Currently, there are 61 active validators with a total staked amount of 1.3 billion FTM, equivalent to approximately $400 million.
Ecosystem Growth Initiatives Contributing to Fantom’s Expansion
During Q2 2023, Fantom implemented several ecosystem growth initiatives. One of these initiatives includes the establishment of the Ecosystem Vault, which accumulated around 530,000 FTM. Furthermore, the Gas Monetization Program was launched in beta during the same period, attracting the participation of over a dozen applications.
In the decentralized finance (DeFi) space, there was a significant decline in Total Value Locked (TVL) due to concerns surrounding Multichain in May. On a positive note, the volume of NFT secondary sales increased by 26% QoQ.
Additionally, the gaming sector is in its initial stages, with the rollout of several developer tools. Notably, Galxe emerged as a leading social application, witnessing a substantial quarterly growth in Unique Active Wallets (UAWs) from 966,000 in Q1 to 3.4 million in Q2, reflecting a 255% QoQ increase.
Development activity on the Fantom network saw a significant growth of 155% QoQ in unique smart contracts.
However, there were changes in the number of full-time and part-time developers. The number of full-time developers decreased from 25 to 21 QoQ, while part-time developers increased from 44 to 56 QoQ.
Concluding Thoughts
Looking ahead, Fantom has outlined several plans to remain competitive in the crypto space. These plans include introducing a new StateDB storage system, Fantom Virtual Machine (FVM), and account abstraction.
These technological advancements demonstrate Fantom’s commitment to continuous building and expansion. With its wide-ranging plans, Fantom aims to position itself for a robust future in the ever-evolving cryptocurrency industry.
In summary, Fantom’s performance in Q2 2023 showcased a mixed outcome. While there was notable growth in new unique addresses, there was a decline in daily active addresses and market capitalization.
These results can be attributed to strategic responses to ongoing regulatory actions and concerns surrounding Multichain. However, with significant network upgrades and growth strategies in place, Fantom is positioning itself for a promising future in the crypto space.
