The Fantom blockchain noticed combined efficiency within the second quarter (Q2) of the 12 months, with key monetary metrics cooling amid the broader cryptocurrency market downturn and the Fantom Basis’s announcement to rebrand as Sonic Labs, based on a brand new report from knowledge intelligence agency Messari.
FTM Market Cap, Income, And Token Economics
After outperforming in Q1, Fantom’s circulating market cap decreased 41% quarter-over-quarter (QoQ) from $2.8 billion to $1.7 billion. Nonetheless, the token’s market cap remains to be 94% greater year-over-year (YoY) in comparison with Q2 2023.
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Income, which measures fuel charges collected by the community, fell 42% QoQ from 1.8 million FTM to 1.0 million FTM. In USD phrases, income decreased 38% QoQ from $1.2 million to $0.8 million.
This decline follows a spike in Q3 2023 because of exercise round non-fungible token (NFT) inscriptions, however in accordance to Messari, income is anticipated to rebound as on-chain exercise picks up throughout the broader crypto house.
The report additionally highlights modifications to Fantom’s token economics throughout the second quarter. The Ecosystem Vault and Gasoline Monetization program had been launched in This autumn 2022, lowering the burn price of transaction charges from 30% to five% and reallocating the remaining 25%.
By the top of the second quarter, the circulating provide of the protocol’s native token FTM reached 2.8 billion, with an annualized inflation price of three% – up 25% quarter-over-quarter.
Fantom On-Chain Exercise Slows
Fantom’s on-chain exercise additionally trended decrease in Q2. Every day transactions averaged over 223,000, down 10% QoQ from 247,000. Every day lively addresses fell 21% QoQ to 31,900, although the report notes a reversal of this pattern in the direction of the top of the quarter.
New tackle development additionally slowed, dropping 47% QoQ to five,000 per day on common. Nonetheless, the report highlighted some constructive developments, together with a rise within the variety of lively validators on the community.
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After a governance proposal decreased the staking requirement from 500,000 FTM to 50,000 FTM, the variety of lively validators grew 6% QoQ to 58, with 14 having lower than 500,000 FTM self-staked.
Staked FTM additionally noticed inflows for the second straight quarter, rising 5% QoQ to 1.3 billion tokens. However the whole greenback worth of staked FTM decreased 39% QoQ to $780.4 million because of the token’s value depreciation.
Fantom’s whole worth locked (TVL) in decentralized finance (DeFi) functions decreased 28% QoQ to $91.2 million, rating it forty second amongst blockchain networks. Nonetheless, TVL denominated in FTM elevated 22% QoQ, suggesting capital inflows regardless of the token’s value decline.
On the time of writing, FTM was buying and selling at $0.3345, up simply 1% over the previous 24 hours. Within the month-to-month time-frame, the coin is down 27% over the previous month amid the broader market decline.
Featured picture from Shutterstock, chart from TradingView.com