The meme coin market has strongly taken over crypto trends lately. A DeFi expert from Dune Analytics says this trend will soon lead to this altcoin project.
This project could be the altcoin market’s secret weapon
Phantom (FTM) is a blockchain project that is particularly noteworthy in ‘encryption’. However, key metrics like Locked Total Value (TVL) have been declining lately. But there is something special about the project that many believe is noteworthy.
One of the most important metrics for any Blockchain project is TVL, which represents the amount of money held in the network. According to analysis by Dune Analytics analyst “OxFinish”, TVL saw a major uptrend in the fall of 2021, the second time Bitcoin hit ATH. But it has since dropped to its lowest point in almost two years. It currently sits at approximately $292 million.
Interestingly, TVL correlates perfectly with the Stablecoin Market Cap, which is the easiest way to bridge blockchains as seen in the chart above.
Also, according to the report, the price of FTM was highly correlated with active users, as evidenced by the recent mini “Altcoin Season” fluctuations in network activity when the price increased. Social dominance and USD trading volume also fell. This points to a complex interdependence of key metrics in the ecosystem.
Rising star of the Phantom DeFi ecosystem
Despite the above, Phantom has several platforms that stand out as the backbone of the network. For example, SpookySwap currently dominates over 22% of TVL dominance. Let’s also mention that SpookySwap surpassed Avalanche’s TVL at one point.
As an automated market maker (AMM), SpookySwap allows users to buy and sell any ERC20 token on the Fantom network without the need for an order book. Instead, the platform uses complex algorithms to determine token prices based on supply and demand. This approach allows users to keep prices stable. Meanwhile, it makes it easy to trade tokens quickly and efficiently.
Additionally, SpookySwap offers a number of features and benefits that make FTM attractive to users. Additionally, it offers a number of advanced features such as liquidity provisioning incentives and various trading pairs.
Despite the departure of Phantom developer Andre Cronje, the Phantom ecosystem continues to grow, led by SpookySwap. cryptocoin.com As you follow, its founder has recently returned to the project. However, the rise of different Layer 2 (L2) solutions in the crypto space is giving Phantom comparable benefits. Thus, it makes it more difficult to attract and retain users.
last words
As a result, Phantom still has potential to rise in the next bull market, according to Defi researcher Ox. However, the project will need to continue to innovate to stand out in an increasingly crowded market.
