Messari: Fantom FTM Market Cap Declined 36% in Q2 2023

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According to a report released by Messari, Fantom faced a decline in daily active addresses by 18% QoQ, while new unique addresses grew by 146% QoQ, coinciding with increased activity on LayerZero and Galxe. Daily transactions decreased by 24.4% QoQ.

The market cap declined 36% QoQ after the SEC took regulatory actions against Coinbase and Binance.US. Total Value Locked (TVL) in USD dropped 46% QoQ, and revenue in FTM increased by 35% (+22% in USD terms), while network value decreased by 36.1% QoQ.

Proposal 34 was passed to reduce the minimum stake required to validate from 500,000 FTM to 50,000 FTM, aiming to increase staking participation and decentralization. Active validators were 61, with a total staked of 1.3 billion FTM (~$400 million).

Several ecosystem growth initiatives were established, including the Ecosystem Vault, which amassed ~530,000 FTM by Q2 2023, and the Gas Monetization Program, launched in beta in Q2 2023, with over a dozen applications joining.

In the DeFi space, there was a significant decline in TVL due to concerns about Multichain in May. NFT secondary sales volume increased by 26% QoQ. Gaming is in its early stages, with several developer tools rolled out. Galxe emerged as a leading social application, growing its quarterly total of UAWs from 966,000 in Q1 to 3.4 million (+255%) QoQ.

Development activity saw unique smart contracts grow by 155% QoQ. Full-time developers decreased from 25 to 21 QoQ, while part-time developers increased from 44 to 56 QoQ.

Looking ahead, Fantom plans to introduce a new StateDB storage system, Fantom Virtual Machine (FVM), and account abstraction. These technological advancements are part of Fantom’s commitment to remain competitive through continuous building and expansion.

Fantom’s mixed Q2 2023, with growth in new unique addresses but a decline in daily active addresses and market cap, reflects strategic responses to regulatory actions and concerns about Multichain. With wide-reaching plans, including significant network upgrades and growth strategies, Fantom is positioning itself for a robust future in the crypto space.

Image source: Shutterstock

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