The Ethereum (ETH) network continues to enjoy status as the top smart contract platform in the blockchain industry, but competition is slowly gaining market share as high costs and network congestion still pose challenges for the protocol.
One project that gained momentum in August is Fantom (FTM), a layer-one smart contract platform that uses directed acyclic graph architecture to solve the problems of slow transaction speeds and high transaction fees.
Data from Cointelegraph Markets Pro and TradingView show that the price of FTM has risen 500% from its $ 0.15 low on July 20 to an intraday high of $ 0.90 on August 30, during its 24- Hourly trading volume by 1,250% to a. exploded record of $ 1.26 billion.
Three reasons for the rising momentum at Fantom are the launch of a 370 million FTM incentive program, a significant increase in social media engagement, and the continued increase in the value associated with the protocol.
Fantom starts a liquidity incentive program
The biggest boost for Fantom came on Aug. 30 with the announcement of a 370 million FTM incentive program ($ 320 million) designed to bring new protocols and liquidity to the Fantom ecosystem.
Announcement of a 370 million FTM incentive program for builders!
If you’re a protocol team, we’ll reward you for maintaining and increasing your TVL on Fantom.
Start building today! #buildonfantom https://t.co/AFvAayhsEe
– Fantom Foundation (@FantomFDN) August 30, 2021
As part of the program, developers who start in the Fantom network can apply for rewards from the Fantom Foundation and receive between 1 and 5 million FTM, depending on the blocked total value (TVL) of the respective protocol.
To qualify for awards, an extended period of time log must hold a TVL above a Time Weighted Average (TWA) of $ 5,000,000 or $ 100,000,000. If at any time the TWA falls below the $ 5,000,000 minimum, the rewards distribution will be paused until the TVL returns to the minimum required.
Social media engagements rise in August
The build momentum for Fantom was recorded by social media metrics from Lunar Crush throughout August. The platform saw social media mentions increase 34% compared to July, and social media engagements also increased nearly 96%.
Fantom’s 1 month activity:
Price $ 0.50331312 + 98.04%
67,305 mentions on social networks + 34.08%
95,793,815 social engagement +95.86%
1,660 Average Daily Social Contributors + 22.24% https: //t.co/UNc78mnwoG $ ftm #fantom pic.twitter.com/Us6Lz8Mw1A
– LunarCRUSH Social Listening for Crypto (@LunarCRUSH) August 28, 2021
On-chain data for the network also shows a steadily increasing rate of interaction as the network now has 415,000 unique addresses doing more than 300,000 transactions per day.
Those numbers could rise significantly in the coming weeks and months thanks to the release of the FTM Incentive Program, which has already set a new record in the number of transactions on the Fantom Bridge.
Related: This service declares that it is again the “crypto-old season”
Significant gains at DeFi
The third reason Fantom’s explosive growth is due to the rising TVL of its DeFi ecosystem, which is led by the SpookySwap exchange ($ 192 million TVL).
According to data from DeFi Llama, the total value of the Fantom blockchain has now exceeded $ 657 million, with a 19.52% increase over the past 24 hours.
As can be seen in the graphic above, the launch of the Fantom Incentive Program helped spark a significant rally in the TVL on Fantom, but the network saw impressive gains in the metric even before the program launched.
Between August 4 and August 23, Fantom’s TVL rose from $ 269 million to a high of $ 510 million with no special incentives. This proves that interest in interacting with the platform has been increasing for several weeks.
Cointelegraph Markets Pro’s VORTECS ™ data began to see a bullish outlook for FTM on August 29, ahead of the recent price hike.
The VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, current price movements and Twitter activity.
As can be seen in the graph above, the VORTECS ™ Score climbed into the green on August 28th and hit a high of 70 on August 29th, about four hours before the price rose 80% the next day.
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