Fantom ($FTM) Price Prediction 2021 – 2025
In this guide, we will voice our own and market’s opinion on Fantom future while discussing FTM price forecast for 2021 and beyond.
Please bear in mind that you should take this and any other prediction with a grain of salt since predicting anything is a thankless task, let alone predicting the future of a novel, highly volatile financial asset like FTM.
Now, let’s head into it.
Before we delve deep into the Iota price prediction and answer questions if Fantom is a good investment or not, why will FTM succeed or fail or why will Fantom price rise or drop, let’s quickly throw a glance at what is FTM and its to date history.
Smart cities have incorporated information technology, communication technologies, and proper digital infrastructure into the fabric of daily life. Contrary to many cryptocurrencies, Fantom is a network that uses cryptography but doesn’t rely on blockchain.
Instead, it relies on an innovative technology called Directed Acyclic Graph (DAG). It is poised to become the nerve center of smart cities as it could form the infrastructure backbone for complex network devices.
What is Fantom?
Fantom is Distributed Ledger Technology that is developing a DAG-based platform to support smart cities and related services. The project will use DAG technology to increase scalability and facilitate instant transactions. The group is also working on a virtual machine to be used to execute smart contracts safely and securely.
Fantom has an ultra-high-speed and high-performance platform which the team believes can be tapped to form the IT infrastructure foundation for upcoming smart cities.
Fantom will significantly scale smart cities with the ability to complete 300,000 transactions per second. In addition, the platform makes it easy for users to communicate across multiple service providers. Fantom also offers the right backup solutions to securely store large amounts of data.
The Fantom team is working on making the platform widely accessible in several sectors including smart home systems, public utilities, traffic management, education, healthcare, environmental sustainability, and resource management projects. This will be achieved by targeting stakeholders for data-driven smart contracts and dApp adoption.
The Fantom team was able to change and adopt DeFi thanks to the platform’s high flexibility. The team envisions building an all-in-one DeFi platform giving users the ability to trade, lend, borrow, and mint cryptocurrencies right from their wallets. Fantom DeFi is fully open-source and accessible to everyone. Fantom DeFi is built on an aBFT consensus, making it cheaper, faster, secure, and more reliable.
Fantom users can execute smart contracts and make the platform more attractive to DeFi thanks to Fantom’s Opera mainnet created using DAG-based Lachesis consensus protocol. It also supports EVM-compatible smart contracts.
The Fantom mainnet has features that make it applicable to a variety of functions in the DeFi ecosystem. Before are functions that Fantom currently supports;
- Liquid staking; Fantom users can use staked FTM tokens as collateral for DeFi functions.
- fMint; users can also mint various types of assets including natural currencies, cryptocurrencies, and commodities.
- fLend; Fantom users can lend and borrow cryptocurrencies and earn interest
- fTrade; Fantom users can trade Fantom-based digital assets right from their wallets as Fantom is both a non-custodial and decentralized AMM exchange.
Fantom offers superior features for DeFib and trading compared to its counterparts thanks to its DAG technology that executes transactions within seconds and attracts very low fees.
The first ICO was conducted in 2018 in which Fantom issued a total of 3,175,000,000 FTM tokens at $0.04306. The team raised a total of $39,650,000 from the offering.
After the offering, it took some time for the actual tokens to be issued, which led to a drop in price to $0.02 as of October 2018. The price continued dropping and reached an all-time low of $0.003105 on February 4, 2019, due to a bear cryptocurrency market.
From February 2019, the price recorded a more than 200% recovery over the next three months. To increase interoperability and a multi-asset cross-chain ecosystem, Fantom listed the BEP2 tokens on the Binance chain. The listing led to a rise in the price of Fantom by more than $300 within a month. Fantom reached its all-time high of $0.039614 on June 11, 2019.
The token prices stagnated since 2019 before being sucked into a cryptocurrency boom in early 2021 that saw its price rise from $0.017293 to $0.4904 between January 1, 2021, to March 10, 2021. It is within this period that the token reached its all-time high of $0.8717.
Fantom Price Prediction 2021 – 2025
The table below shows Fantom price projections between 2021 and 2025;
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Is FTM a good investment?
Fantom has maintained an upward trajectory since the start of 2021 rallying 1,570% as its cross-chain bridge to Ethereum and governance features strengthen its position in DeFi.
There has also been an increase in the number of platforms seeking to increase interoperability like Smart Chain, Binance, and Polkadot. These platforms are mainly motivated by the need to reduce network congestion and reduce transaction costs.
Key factors that have sustained the token’s rally include the roll-out of on-chain governance features, the release of a cross-chain bridge between Ethereum and Fantom, and the ability to stake tokens while still using their value on decentralized platforms.
Early this year, Fantom partnered with Yearn.finance to create a cross-chain bridge with Ethereum, which allows Fantom users to easily move ERC-20 tokens to Fantom. This has increased the speed of transactions and reduced transaction costs.
The team is also working on activating cross-chain functionality to facilitate seamless movement of tokens between the two platforms. Many analysts and trading platforms have a bullish projection for Fantom token.
Another key motivating factor attracting investors to Fantom is the open governance system where all token holders participate in decision-making through proposing and voting on new ideas. Fantom is one of the few platforms that support a fully decentralized blockchain.
The governance system is meant to build trust and transparency as all token holders make proposals that improve the whole ecosystem. Fantom offers a variety of proposal templates compared to other platforms that offer a simple “yes” or “no” vote.
Another motivating factor to invest in Fantom is the recent introduction of liquid staking, which allows token holders to earn rewards on their stored tokens and also use them in DeFi. With this option, users can choose to store their token to be used to secure the network in return for periodical returns, or they can forfeit the return and use the token as collateral or for trading.
The protocol has simply opened up multiple ways for token holders to earn from their tokens, a move that has also attracted many investors and caused the price to rise from $0.05 to $0.26 in just three days.
Advantages of Fantom
Fanton is very flexible allowing developers to port their existing Ethereum-based dApps on Fantom Opera mainnet very fast. Below is a summary of the advantages of Fantom;
Fantom is very scalable allowing independence of various networks without affecting their, traffic, stability, and performance. The explosion of dApps and the increase in users causes the network to slow down as all the dApps rely on the same infrastructure.
Fantom gives each application its own blockchain. It is a similar case to running each application on a separate computer that is connected to the same network with other computers. This way, the team has solved the scalability problem allowing users to complete transactions within seconds.
Fantom is secure and environmentally friendly
Unlike Bitcoin and Ethereum that rely on Proof-of-Work, Fantom uses Proof-of-Stake which saves electricity and prevents centralization. Lachesis offers bank-level security to decentralized networks. In addition, transactions on Fantom can never be reversed as the platform offers absolute finality compared to other networks that offer probabilistic finality. The consensus mechanism accommodates hundreds of nodes that increase centralization and security.
Open-source and open-participation
Fantom is open-source meaning the platform can be accessed by everyone as the team aims to build a strong transparent community. Additionally, the protocol is permissionless meaning users don’t seek approval from anyone to run nodes.
Opera Chain is able to accommodate an unlimited number of nodes all of which participate in securing the network. To participating in staking tokens for rewards, members need to maintain a minimum of 3,175,000 FTM. Those with less tokens or non-experts in running distributed networks can still participate in validating records on the network by delegating their tokens to approved validators and sharing in the returns.
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The Fantom Team
Fantom was founded by Dr. Ahn Byung Ik, a Ph.D. holder in computer science. He is also the president of the Korea Food-Tech Association and a contributing author at Fortune magazine.
The company’s CEO is Michael Kong who has years of experience in the blockchain industry having worked for several years as a smart contract developer.
Andre Cronje serves as Fantomas the DeFi architect. He is the brainchild of Yearn Finance. The team is also made up of highly professional, successful, and motivated members from various sectors like finance, business development, cryptography, and software engineering and architecture.
The Future of Fantom
Fantom is built on an innovative aBFT consensus called Lachesis and the team is also working on creating a blockchain ecosystem together with the whole blockchain technology stack. The team says it is committed to launching new innovative features to make it easy for people to take advantage of innovative technologies in the future to improve their well-being.
There is generally increased activity on the Fantom API GraphQL. PWA explorer, Fantom PWA Wallet, gnosis front, and safe transaction service, which points to increased interest and growing potential of the Fantom FTM token when key DeFi features are implemented.
Fantom’s protocol is divided into three layers that separately handle different functions. These layers are;
- Opera Core Layer
- Opera Ware Layer
- Application layer
The OPERA Core Layer
This is the bottom layer used to create events and maintain consensus across the nodes in the Lachesis Protocol. The DAG technology allows this layer to confirm and process transactions asynchronously. With the DAG technology, the transactions are recorded on the nodes and not a blockchain.
As opposed to blockchain, with DAG technology, no data is saved on the nodes. Another set of nodes called witness nodes are used to validate transactions by checking the validity of the data on the network.
The OPERA Ware Layer
This layer is located in the middle of the protocol and executes various functions like completing payments, issuing rewards, and writing “Story Data.”
The OPERA Application Layer
The OPERA Application layer is the topmost layer and contains publicly available APIs used by developers to interface their dApps with the OPERA Ware layer. A key feature in this layer is the “Story Data,” which is used to track past transactions. This is a unique feature compared to Ethereum, where tracking of transactions is somehow limited. This is especially valuable in some sectors that are heavily reliant on data like the healthcare sector and supply-chain management.
Lachesis consensus is an asynchronous Byzantine Fault Tolerant (aBFT) consensus algorithm built using DAG technology. It has improved features compared to Nakamoto, Classical, and even practical Byzantine Fault Tolerance. In addition, to being Byzantine Fault Tolerant, Lachesis is also asynchronous and leaderless.
Lachesis delivers consensus on any application irrespective of the programming language used, giving developers space and freedom to create application logic and using Lachesis to handle state machine replication.
Lachesis users can also plug into other Lachesis nodes and the algorithm will build consensus among the various players and order of instructions through the use of peer-to-peer networking and DAG aBFT consensus.
Asynchronous Byzantine Fault Tolerance (aBFT)
Initially, the Scalability Trilemma introduced by the Ethereum team specified that all three conditions, -decentralization, scalability, and security could not be included in a consensus algorithm at the same time. The introduction of Asynchronous Byzantine Fault Tolerance (aBFT) seems to solve this limitation. It is currently the highest standard available in consensus algorithms.
The Fantom aBFT consensus protocol is more improved allowing for high scalability, maximum decentralization, and high-level security. The aBFT network has inbuilt nodes that are able to reach consensus independently without exchanging finalized blocks. This creates a leaderless system with increased security.
There are several advantages that come with implementing aBFT. First, it makes the network strong and resilient to DDoS attacks. In addition, it also lowers transaction latency and improves network speed. aBFT improves network scalability and decentralization since there are few communications limiting the number of nodes.
How does Lachesis work?
The nodes used to build consensus in Lanchesis are built with a local DAG that carries the transactions in the even blocks. The DAG establishes relationships among events and calculates the final order of events. The nodes are able to determine the final order and arrangement independently without relying on other nodes.
After ordering the events, the events blocks are further separated into confirmed and unconfirmed blocks. All blocks from the past 2-3 frames are confirmed while newly added blocks are unconfirmed.
Finally, consensus is reached with the formation of several confirmed event blocks with each batch of events called a block. The number of final blocks on each finalized chain is calculated from all available event blocks on each node.
Compared to other consensus platforms, Lachesis doesn’t send blocks to each other but instead synchronizes the various events between nodes. The Lachesis nodes do not vote on the exact state of the network but instead, exchange observed transactions and events with their peers.
This means that Lanchesis nodes do not create news events for current elections but instead uses events created in 2-3+ previous virtual elections simultaneously. This significantly reduces the number of consensus messages created as events are reused in several elections. In addition to reducing communication overhead, Lanchesis also helps achieve a lower time to finality.
StakeDag is a new technology that uses members’ stake to achieve practical BTF in a leaderless asynchronous ecosystem. The StakeDag protocol is able to achieve quicker consensus by stretching the Lachesis protocol to connect to the layer assignment on the DAG. There are two major benefits for using StakeDag;
- The protocol creates fairness as all nodes have equal chances of creating new event blocks
- It is secure and efficient with very few vulnerabilities
Buying & Storing FTM
Users can buy FTM on various crypto exchanges like Binance, MXC.com, and KuCoin. The majority of the trading (55%) takes place on Binance. After buying the token, FTM holders can choose to move them off the exchange into their secure wallets. Users need to be sure they are using a secure and compatible wallet as there are three different versions of the FTM tokens.
There are several ERC-20 compliant wallets like MetaMask or MyEtherWallet / MyCrypto used to store ERC-20 token and the Binance chain wallet used to store new BEP-2 token. Users need to create the Binance chain wallet from where they can access the Binance Bridge to convert the ERC-20 tokens to BEP-2 tokens. The native fWallet created by Fantom can be used to store the native Opera FTM token.
Fantom is one among many projects that are using DAG technology to increase scalability. Others are Nano and IOTA who pioneered DAG-based projects. Despite the sector being already crowded, Fantom seems committed to making a mark by introducing features that support smart contracts and dApps.
Thanks to the wide network that the Fantom team has, Fantom is projected to control the South Korean market for smart cities. The company is riding on its ability to offer high transaction speed and low transaction fees to drive adoption and increase acceptance.
CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com