Why Is Fantom (FTM) So Cheap?

Last Updated February 1st 2022
6 Min Read

For a blockchain with so much potential, Fantom is extremely undervalued, which leaves most crypto experts and investors asking - why is Fantom so cheap?

At the moment, Fantom can be said to be this cheap because it still is a relatively new and largely unpopular third-generation cryptocurrency. Unlike such industry pioneers as Bitcoin and Ethereum that have attracted millions of users and a solid community behind their crypto-asset over the years, Fantom has only started attracting developers and building a crypto community around the network. Simply put, Fantom token prices are cheap because there isn’t enough demand to incite a momentous price rally that catapults it above the low rates.

However, the low prices shouldn’t be mistaken to imply low value or be taken to mean that FTM is not worth investing in. On the contrary, the altcoin’s market cap rose by more than 14,400% in the last year to reach $5.3 Billion, outperforming the more popular and higher-priced cryptocurrencies like Ethereum Classic (ETC), which is currently trading at $25.67 with a market cap of $3.4 Billion.

Moving forward, the majority of crypto experts and investors expect Fantom to play catch up and possibly break above $100 and make it t to the top 10 cryptocurrencies based on use cases and market cap by the turn of the decade.

In this post, we will be diving deeper into the topic and exploring more reasons why FTM is this cheap. We will also tell you if FTM is worth buying today and reference a few reputable crypto experts in telling you if FTM is really worth investing.

But first, we need to understand how by looking, Fantom got here at its price history.

Fantom (FTM) Price History

At the time of writing, Fantom token prices are up by more than 7.64% in the last 24 hours and is trading at $2.10, according to data from CoinMarketCap. It just set a new all-time high price of $3.48 in October 2021.

The altcoin has also jumped from position 33 to 29 on CoinMarketCap’s ranking of the most valuable cryptocurrencies during the week and added more than 190% in October 2021. This wild price action comes hot on the heels of the first-ever Fantom developer conference that took place at the Emirates Palace in Abu Dhabi, UAE the same month.

We must add that in addition to the conference, several other factors have played a crucial role in helping FTM token prices reach current heights. These include Bitcoin setting its own all-time high less than a week ago, an expanding crypto market, and more partnerships between Fantom and blockchain brands like Yearn.Finance as well as off-chain Brands like Formula 1 driver Pierre Gasly, who is set to launch the first-ever Formula 1 NFTs on the network.

But even after hitting these milestones and shuttering one price record after another, crypto analysts are still convinced that Fantom is extremely undervalued.

Check Out: What Is Fantom? Should You Invest In FTM And Where To Buy It?

Why Is Fantom (FTM) So Cheap?

Fantom is considered cheap today solely because it is new, and crypto experts feel that it is has a more superior blockchain technology to most of its higher-priced competitors.   

When you consider the revolutionary impact that the Fantom network has on the blockchain industry, you too would come to the conclusion that the altcoin is massively undervalued.

And we seek to understand why FTM tokens are cheap by comparing the altcoin to its fiercest rival, Ethereum.

Look at this way, transaction fees on Fantom are much cheaper than on Ethereum, transaction processing on Fantom is almost instantaneous even during periods of high traffic, Fantom features a more advanced and developer-friendlier platform than Ethereum, and there are 37X more ETH than FTM tokens. Most importantly, Fantom solves the scalability Trilemma without going the multi-layer blockchain route. Still, ETH has a per-token value of $2,776, while FTM trades around $2.10 (1321X less than ETH).

The only logical explanation for this is that Ethereum has been around for a longer time - 4.5 years to be exact. Further, Ethereum enjoys the first-mover advantage, seeing that it was the first smart-contract blockchain ever created. This has allowed it to onboard more developers and has more DeFi and NFT projects launch on the platform than on Fantom. All these make the network popular and its native tokens more valuable.

But crypto experts are convinced that this won’t always be the case and that Ethereum will continually cede much of its market share to such ‘Ethereum Killers’ as Fantom, which will boost their prices.

How soon can this happen?

Well, you only have to take a look at its market share from three years ago and see that it is already happening. Note that in December 2018, Ethereum’s market cap accounted for about 26% of the larger crypto market - which can be taken to mean a loose reflection of the number of developers and users on the ETH network. Today, however, this market share has shrunk to about 18.8% today. Fantom’s share of the market cap has, on the other hand, jumped from non-existent to around 0.3%.

But what do the rising market share and token prices say of Fantom? Should you be buying the altcoin today?

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Should I Buy Fantom (FTM) While It Is Still Cheap?

Well, the decision to invest in Fantom should be personal, and it should also be informed by such other factors as your risk tolerance, your understanding of the altcoin, and your crypto trading experience. That said, here is a fact we cannot ignore.

Virtually all the other Ethereum Killers, including Solana, Polkadot, Cardano, and Polygon, started at relatively low prices - well below $1 for some like Solana, which is currently trading above $105 today. They all have maintained a proper uptrend none has had its value drop below its price level 12 months ago.

Considering that Fantom can be said to have a relatively superior blockchain technology than most of these competitors, you would be right to assume that this could be the last time we are seeing FTM trading at these single-digit price levels - which makes it a good buy.

Read Also: Will Fantom (FTM) Make Me Rich?

Will Fantom (FTM) Prices Rise?

Yes, FTM token prices are expected to continue rising for the next few years. In the last year, for instance, Fantom token’s value has appreciated by more than 14,000% - higher than virtually all its competitors and even pioneer cryptocurrencies like Bitcoin. Today, its popularity is on overdrive as it is onboarding investors/traders, developers, and partners at a faster rate than virtually all other Ethereum killers.

All these, plus FOMO and listing with more crypto exchanges, are expected to continue fueling its already uptrending price action for the next few years.

But, how high up can Fantom prices reach?

Well, crypto experts from Coinpedia are confident that if Fantom sustains the current momentum, it could break above $10 (appreciating by more than 330%) in 2022.

Technical analysis by CryptocurencyPricePrediction, on the other hand, indicates that Fantom token prices could reach $41.96 by the end of 2025, before rising further and reaching $118.19 by the end of 2030.

Conclusion: Why Is Fantom Cheap?

Fantom is cheap because of a myriad of reasons, but chief among them is the fact that it is relatively new, which ensures that it has limited use cases and a relatively small community of developers and users whose demand for the altcoin hasn’t been strong enough to help break above undervaluation.

But in the last few months, we have witnessed an increased investor/trader interest in the coin as well as critical developments on the Fantom blockchain - including the ongoing Fantom Developer Conference in Abu Dhabi, UAE. And they have helped ignite an uptrend that experts are confident will help FTM token prices escape undervaluation and earn current investors massive profits.

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.