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Fantom blockchain saw mixed performance in Q2, with key financial metrics slowing amid the broader crypto market decline Fantom Foundation has announced a rebranding to Sonic Labs, according to a new report from data intelligence firm Messari.
FTM Market Cap, Revenue, and Token Economy
After outperforming in the first quarter, Fantom traded Market value The cryptocurrency’s market cap fell 41% quarter-on-quarter from $2.8 billion to $1.7 billion. However, the coin’s market cap is still 94% higher year-on-year compared to Q2 2023.
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Revenue, which measures gas fees collected by the network, decreased 42% quarter-over-quarter from 1.8 million FTM to 1.0 million FTM. In U.S. dollars, revenue decreased 38% quarter-over-quarter from $1.2 million to $0.8 million.
This decline comes after a sharp rise in Q3 2023 due to activity around non-fungible token (NFT) engravings, but According to According to Messari, revenue is expected to rebound as on-chain activity picks up across the broader crypto space.
The report also highlights changes to Fantom’s token economics during Q2. The Ecosystem Vault and Gas Monetization program was introduced in Q4 2022, reducing the burn rate. Transaction fees From 30% to 5% and redistribute the remaining 25%.
By the end of Q2, the circulating supply of the protocol’s native token FTM reached 2.8 billion, with an annual inflation rate of 3% — a 25% increase quarter-on-quarter.
Fantom activity on the chain is slowing down.
Fantom’s on-chain activity also trended downward in Q2. Average daily transactions were over 223,000, down 10% QoQ from 247,000. Active titles New vehicle orders fell 21% quarter-on-quarter to 31,900, although the report indicates that trend will reverse toward the end of the quarter.
New address growth also slowed, falling 47% quarter-on-quarter to an average of 5,000 addresses per day. However, the report highlighted some positive developments, including an increase in the number of active verifiers on the network.
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After the governance proposal reduced the participation requirement from 500,000 FTM to 50,000 FTM, the number of active verifiers increased by 6% QoQ to 58, with 14 of them having less than 500,000 FTM that they themselves participated in.
Staked FTM also saw Inflows For the second quarter in a row, up 5% QoQ to 1.3 billion tokens. However, the total dollar value of FTM tokens held fell 39% QoQ to $780.4 million due to the token price decline.
The total value locked (TVL) of Fantom in decentralized finance (DeFi) applications decreased by 28% QoQ to $91.2 million, ranking 42nd among blockchain networks. However, the TVL denominated in FTM increased by 22% QoQ, indicating capital inflows despite the token’s price decline.
At the time of writing, FTM is trading at $0.3345, up just 1% in the past 24 hours. On a monthly timeframe, the coin is down 27% over the past month amid the broader market decline.
Featured image by Shutterstock, chart by TradingView.com
