Smart Contracts have no doubt revolutionized the blockchain industry- they are secure, immutable, and reliable. However, even the most efficient of smart contract systems still lack one important thing- speed.
For instance, while Ethereum (the pioneer of smart contracts) started off on a good note in terms of speed and scalability, it is becoming increasingly bottlenecked as its community, and use cases widen. For this reason, transactions are taking much longer to complete, and most people are beginning to lose interest.
Fantom is a crypto project which aims to provide ultra-fast transaction speeds by limiting decentralization in its consensus mechanism. This is done through Lachesis- an advanced version of PBFT (Practical Byzantine Fault Tolerance). With Lachesis, Fantom is able to process transactions in seconds.
Lachesis is a consensus mechanism that focuses more on speed and less on decentralization. This is different from other protocols, such as Bitcoin’s Proof-of-Work, which leans more towards security and decentralization than speed or scalability.
In this guide, we will take a look at Fantom's tech, ecosystem, and future prospects. Let's get started!
What is Fantom?
Fantom is a project aimed at providing cheap and fast transactions to solve the problems associated with blockchain smart contracts. It's able to achieve this through its unique consensus mechanism known as Lachesis- an advanced version of PBFT (Practical Byzantine Fault Tolerance).
Lachesis works quite similarly to DPoS, where validator nodes are selected based on their stake to form a committee, which selects two shard leaders for sharding. However, Lachesis differs in that Fantom's consensus mechanism uses Proof-of-Stake (PoS) to elect validator nodes rather than using the more traditional Proof-of-Work (PoW).
The increased speed of transactions offered by the increased efficiency of the Lachesis consensus mechanism enables Fantom to power cheap and fast transactions.
Fantom aims to be a viable alternative to Ethereum by providing DeFi (decentralized finance) services such as loans, wills, futures, etc., all powered through smart contracts. Through Fantom's Lachesis consensus algorithm and its own native token, the FTM, it aims to overcome some of Ethereum's key issues, such as high transaction fees and slow speeds.
How Does Fantom Work?
Fantom's PoS consensus mechanism, known as Lachesis, consists of Fantom validators nodes that are randomly selected to validate transactions. These validator nodes maintain the Fantom ledger and process transactions.
These validator nodes can be replaced in the event of negligence or malicious behaviour through a democratic voting system. The two shard leaders, selected from among the Fantom validators, coordinate with each other to perform cross-shard transactions.
It is these cross-shard transactions that allow for Fantom to achieve faster transaction speeds as cross-shard transactions only require a certain group of nodes to process the transaction.
Validator election is done through an advanced version of Proof-of-Stake(PoS) known as Delegated Proof-of-Stake (DPoS). In DPoS, users vote to choose the validators nodes that will process transactions.
As opposed to DPoS, where users vote for nodes, Fantom's network uses Delegated Proof-of-Stake (DPoS), where users stake their FTM tokens in order to be randomly selected as a validator node. The more FTM you have staked, the more likely you are to be selected.
Fantom's consensus mechanism has no mining or block rewards. Instead, users of Fantom receive transaction fees as "gas" (like Ethereum). This means that, unlike most other PoS-based projects, Fantom validators won't be receiving large staking rewards that come with owning a significant amount of FTM.
Read Also: How to Stake Fantom
Fantom Price History
According to data from CoinMarketCap, Fantom started trading around 2018. However, like most new cryptocurrencies, it didn’t have much going on for the first two years.
It was until the early 2021 market bull run that FTM gained some traction and began picking up momentum. Otherwise, from the time it started trading until around mid-January 2021, the coin pretty much stayed below $0.06.
As you can see, there wasn’t much action in Fantom’s early years. The digital asset stayed under the radar for a number of reasons. The first is that around the time it was launched, major cryptos like Bitcoin were ballooning into the mainstream financial industry. As a result of the excitement that followed, little attention was paid to newcomers.
Unfortunately, Fantom had to wait for at least two years before seeing some investor love. The magical growth took off in the early 20s of January 2021.
For instance, between January 25th and February 24th, Fantom rose from as low as $0.05231 to $0.6502. That is an impressive 1,142.97% gain in just a month.
But that was merely the beginning.
Fantom did have a short-lived price correction after this and went as low as $0.306 two months later. However, it again shot up and crossed $0.7 in early May and then $0.9 in mid-May.
Again, the price dropped, and FTM bottomed out at $0.17 in mid-July 2021. But as some experts would say, this was merely a preparation for one of its biggest price increase.
What followed blew the expectations of most investors and crypto enthusiasts, especially now that most people believed that Fantom would be going back to its dull pre-2021 days. However, just as it was about to drop below $0.1, the coin rose parabolically to hit a high price of $1.93 on September 9th, 2021. By October 28th FTM almost doubled to reach its current all-time high of $3.48.
This remains Fantom’s biggest price jump since it started trading. Recently, the price adopted a downtrend momentum after struggling to cross $3.4. And while most price analysts believe that it will cross that price point in the next two months, it might be faced with some major resistance.
It's currently trading almost 40% down from its ATH, at $2.10, but has gained more than 7% in the last 24 hours.
Fantom is ranked number 29 in the market and has a market cap of around $5.3 billion with a fully diluted market cap of $6.6 billion.
Check Out: Why Fantom Will Skyrocket
Fantom Price Prediction in 2022 - 2023
Fantom is an extremely ambitious project with a lot of room for growth. If the team manages to successfully execute its roadmap, it has the potential to become one of the most valuable cryptos in the market.
By 2022-2023, Fantom will have probably gained tremendous price growth.
But let’s see what price analysts think.
Wallet Investor seems fairly optimistic about the future of Fantom FTM. The site still predicts content growth in 2022, having FTM begin the year around the $2 and double by the end of it.
Let’s break it down for you;
At the start of 2022, Wallet Investor predicts that Fantom will trade at around $2.79 in March. At the end of April FTM will reach the $3 mark and exceed it to $3.5 by August. In the first weeks of September the token will reach $4 and end 2022 with a price very close to $5 - $4.94.
Gov.capital agrees, although its predictions seem to show slower growth and more volatility.
Gov.capital predicts that Fantom will reach the $3 level in early May, then drop to $2.9 before reaching $4 in late October and ending 2022 with a price of $4.27.
There is obviously some good news here, although we hope there is better news in 2023.
Wallet Investor starts off 2023 at above $5 per one Fantom coin, and there will be steady growth with little to no volatility until mid-May when it will trading at slightly above $6. From there, Fantom will drop a tad until around early June when it will start growing again and cross $6.8 per coin in late August 2023.
FTM will have reached $7 in early September. The coin will continue this growth and finish the year at the $8 mark.
Gov.capital is a little less bullish and predicts that Fantom will reach $5 in early August. It will then go as high as $6.75 before dropping to $6.53 by the end of the year 2023.
So, there is a good chance that FTM will trade at above $5 or even go as high as $7 if it encounters a bullish market.
Of course, given the volatility, the $5 level might come as early as 2022. But for that to happen, the Fantom coin will have to rebound soon enough from the current bearish momentum.
We might see even more promising numbers in 2024 and 2025.
Let’s find out…
Fantom Price Prediction in 2024 - 2025
Fantom has a lot to offer in the long term. By this time, it might be competing with older cryptos such as Ethereum and Bitcoin for market share.
If Fantom's ambitious roadmap becomes a reality and it overcomes some of the key issues plaguing Ethereum, its price is set to increase exponentially in the next five years.
Of course, it is impossible to predict with pinpoint accuracy how much FTM will be worth in 2024 and 2025. However, based on expert opinions and analysis, we can get an idea of the general price direction going forward.
These predictions will help you decide whether you should HODL for the long term or simply take advantage of short term volatility and trade.
Gov.capital is fairly bullish about 2023, so we are curious to see what it has in store for FTM in 2024.
According to the site, Fantom will start off 2024 at around $6.59 then drop to $6.25 by the end of the first month. The coin will struggle a bit before crossing over to $7 per coin. However, around the end of April, it will achieve that milestone and then quickly grow to reach $8 in mid-September. By the end of 2024, Fantom will have a price of $9.51, after having reached $9 at the beginning of October.
In 2025, Gov.capital predicts that Fantom will start off the year at slightly above $9 then quickly grow to $10 by mid-January. From there the coin will go upwards slowly, reaching $11 at the end of August. It'll pick up quickly and touch the $12 milestone by October and finish the year at $12.70.
Wallet Investor gives similar predictions for 2024 and 2025. It has Fantom beginning 2024 at a price around $8 and ending that year $11.43. By the end of 2025, the site expects FTM to go as high as $14.95.
Digital Coin Price is a little more bearish about the growth of FTM in 2025 as it predicts that it might end the year at around $4.41 but might go as high as $5.12 in May 2025. From these predictions, we can conclude that Fantom might trade between $3 and $4 from 2024 to 2025. However, if the market is favourable, we could see figures above $5.
Also, if Fantom records a higher adoption rate and is able to solve some of the common problems in the crypto industry, like scalability and transaction fees, it could grow even faster.
Don't Miss: Fantom Price Prediction For 2025 And 2030
The Future of Fantom: Will the Value of FTM Rise?
Fantom is an exciting project with a lot to offer. Although its price started rising exponentially this year, it still has a long way to go before becoming one of the most valuable cryptos out there.
Its blockchain technology and native token FTM will be powering DeFi services such as loans, wills, futures and more in the next few years.
If the team is able to successfully implement its roadmap over the next two years and overcome Ethereum's key issues, then there's no doubt that Fantom will become one of the most valuable cryptos in the world in 2020-2025.
This growth will no doubt see the price of Fantom's native token- FTM- experience a sharp increase in value.
In general, there are several factors that will determine whether or not the value of FTM goes up in the future;
- Adoption rate - Fantom has already garnered significant adoption in 2021- both among exchanges and through real-world use. If this level of growth is maintained, Fantom will likely experience substantial price increases throughout the year.
- Strength of its core team - Fantom's core team consists of some of the best minds in the crypto industry. If they're able to solve some of Ethereum's key issues and deliver on their ambitious roadmap, then there's no doubt that Fantom will become one of the most valuable cryptos in both 2022 and 2023-2025.
Above all, although Fantom has a lot of potentials to increase its value, it can only do so if it succeeds in overcoming Ethereum's key issues- specifically high transaction fees and slow speeds.
There is also the issue of FTM being tied to another coin, TUSD. If TUSD becomes less respected or popular for exchanges, then FTM will likely suffer in the market.
In conclusion, Fantom has a lot of potentials to become one of the most valuable cryptos in the world by 2022-2025. Although it's still early days for FTM, its price is set to undergo substantial growth over the next few years.
Conclusion: Is FTM a Good Investment?
It is evident at the moment that Fantom (FTM) has a ton of potential and can become one of the best performing cryptocurrencies in 2021. According to experts, FTM tokens will experience massive growth as it produces high returns for those who invest.
It can help solve problems associated with smart contract platforms and deliver faster and cheaper transactions. The platform is still young, but it has gained a lot of momentum in the market. If you are interested in joining the FTM community, then now is an excellent time to invest.
Before you do, though, make sure you do your own research and don’t invest any funds in Fantom (FTM) that you cannot afford to lose.
eToro – The Best Platform to Buy Fantom
eToro have proven themselves trustworthy within the Crypto industry over many years – we recommend you try them out.
Virtual currencies are highly volatile. Your capital is at risk.