How Fantom ($FTM) Could Be One Of The Hottest Investments In 2022
And reasons why this cryptocurrency is still undervalued.
The cryptocurrencies market started poorly this year, as most of the coins greatly lost their values following the dropping price of Bitcoin ($BTC). From the internet shutdown in Kazakhstan to the latest news of the Fed meeting, these events convinced many investors to start becoming skeptical as greed slowly turned into fears.
While all major cryptocurrencies were hugely dipping, Fantom rose up against the tide and gained 60% in the past month. Surprisingly, Fantom is not as famous as their Layer 1 cryptocurrencies buddies such as Solana ($SOL) or Polkadot ($DOT).
People begin wondering what is Fantom, and would it possibly surge this year? These are the reasons why Fantom could be a great investment this year.
Follow the money
“Somebody said once ‘follow the money’ and that is what it is all about”
— Murray Walker
There is an old saying “Follow the money” while in DeFi (Decentralized finance) it means to follow the total value locked (TVL). TVL is used to measure total assets locked in, the bigger the number is the healthier the network is.
Fantom TVL surged from $100k at the beginning of its launch to $9.22B at the time of this writing. Despite the huge increase of the TVL, Fantom's price is still considered undervalued with MCap/TVL 0.5 ratio compared to his buddy Solana that scored a 3.8 ratio.
Although the coin price doesn’t always align with the TVL, it could be a great tool to measure how confident the investors are in putting their money into this project.
Fantom ecosystem is growing
A lot of dApps (Decentralized applications) are built on Fantom, and the numbers continue to grow, dApps are one of the main reasons Ethereum ($ETH) gained $300B in total locked value. And we could see that we are still entering the beginning era of development for Fantom.
Fantom is not (yet) on Coinbase
You might have heard of the ‘Coinbase effect’ wherefrom many cases, the price of a cryptocurrency could surge when it got listed on the platform. Surprisingly, Fantom is not yet listed on Coinbase.
The fact that Fantom is not very famous yet, and the buying option is still limited, it could be a great opportunity to jump on the project early than the majority later in the future.
Looking ahead this year
Many investors are always looking for the next Solana or Avalance. And it seems that Fantom has the qualification to match with their buddies on the Top 10 cryptocurrencies.
Although I’m very bullish on Fantom, it is important to do your own research before putting an investment into the project.
Cryptocurrencies are one of the most volatile assets and involve high risks. Please invest wistfully.