Fantom Transactions Exceed Ethereum For First Time Last MondayFebruary 5, 2022 8:11 pm
Fantom investors were pleasantly surprised as it was recorded that Fantom transactions exceeded those of Ethereum for the first time within a 24 hour period.
Within those 24 hours, over 1.2 million transactions were processed on the blockchain which is higher than the 1.1 million transactions processed on Ethereum.
This is considered a new record for the Fantom network and indicates that many investors are now actively looking for new ways to farm yields and seek higher investment returns with their capital.
The speed of the transactions on the Fantom was also noticeably higher although Ethereum has handled a much larger amount of volume throughout the past few years.
— Crypto Chic (@Crypto_Chic_) January 25, 2022
With 55 validators maintaining the network, Fantom processed upward of eight transactions per second (tps) on Monday compared to Ethereum’s current rates of under 2 tps, data showed. Ethereum transactions are now at August 2021 levels, far below the May 2021 peak of 1.7 million daily transactions.
Fantom has now recorded a total of over 170 million transactions since its launch in December 2019, a fraction of Ethereum’s 1.4 billion transactions since its inception in 2015.
However, Monday’s figures on Fantom were still lower than all-time high transaction counts of 1.8 million in September 2021, a month before FTM tokens reached a price peak of $3.46.
Tokens of Fantom have emerged as the top performers in recent months as investors bet on the tokens of layer 1 projects – protocols with their native blockchains, such as Fantom or Solana – as an alternate to Ethereum.
As of right now, Fantom has amassed a certain threshold of popularity as it is now considered the third largest decentralized finance protocol when measured by locked value.
Comparing this position to the beginning of the year where it was considered the eighth largest, it is clear that the speed of growth of the network has been increasing.
This could be attributed to more developers and users moving to the ecosystem.
Currently, there are 129 Fantom based decentralized finance applications and over $12.2 billion worth of value locked in the ecosystem.
Analysts say newer products and high yield rewards are fueling growth on the Fantom network.
“Many projects like Radial, veDAO, and 0xDAO came up with liquidity mining launches that vampire-attacked other protocols to gain TVL.
These projects share a lot of resemblance to [‘DeFi summer’] projects in 2020,” wrote crypto research firm Delphi Digital in a note on Tuesday.
Liquidity mining refers to users supplying liquidity to DeFi applications and receiving rewards for doing so.
“Mercenary capital came over to Fantom to farm these projects as they were providing incredible yields on single-sided staking,” the analysts cautioned, suggesting current activity could be short-lived as yields fall and investors exit to wherever more yields are on offer.
The crypto market’s reaction to the recent news has been fairly positive with the FTM token increasing by 8% in just 24 hours since that Monday.
High yields are something that many investors are looking for as it offers a somewhat stable way to park capital and gain interest that is much higher than traditional assets outside of crypto.
With that being said, there are risks to staking and getting high yields so choosing reliable projects is essential to taking advantage of this emerging trend.
Fantom Transactions Surpass Ethereum as Users Look to Farm Yields CoinDesk https://t.co/teHrwmtdZ6
— NFT SHOW🦇🔊 (@nftshownow) February 1, 2022
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