This Crypto May Be the Solana of 2022


Fantom (CRYPTO:FTM) is underneath the radar proper now, however in all probability not for lengthy. The crypto had an incredible run-up final 12 months. The coin offered for $0.02 a 12 months in the past. Now it is buying and selling at $3 a coin.

Fantom is leaping as a result of it is a layer 1 protocol with super-fast speeds, like Solana (CRYPTO:SOL). In 2021, these two cash skyrocketed in worth 14,000% and 11,000%, respectively. Fantom is quite a bit smaller with a market cap of $7 billion versus $43 billion for Solana. I believe a part of that discrepancy is as a result of Solana, in contrast to Fantom, may be purchased and offered on Coinbase (NASDAQ:COIN), the largest crypto change. (You should buy the coin on one other change, Gemini.)

I am anticipating the smaller coin to outperform Solana but once more in 2022. Here is why you may wish to personal Fantom coin.

Two stockbrokers are ecstatic as they take orders over the phone

picture supply: Getty Photographs

1. It is likely to be the quickest blockchain on the market

Final 12 months the crypto markets went loopy for Ethereum (CRYPTO:ETH) opponents. Ethereum is the key platform for the crypto universe. However curiosity in crypto is skyrocketing, and the Ethereum community is creaking underneath the pressure. The “gas fees” (the price of validating a transaction on the Ethereum blockchain) hit $300 at one level. As compared, a transaction on Fantom or Solana prices a fraction of a a penny.

Why are the charges so low-cost? Velocity. Solana averages 50,000 transactions per second, versus 14 per second on Ethereum. Fantom is just not as quick as Solana, however it’s nonetheless approach forward of Ethereum; in a take a look at run again in 2018, its blockchain processed 25,000 transactions per second. However Fantom has a fairly stable declare to being the quickest blockchain when you have a look at time to finality. That is arguably an important statistic, as that is the second when a transaction has been absolutely validated on the chain. Fantom’s time to finality is a couple of second, versus 13 seconds on Solana and greater than a minute on Ethereum.

Fantom can be rocking the whole variety of transactions on the blockchain. A 12 months in the past, Fantom averaged of 4,000 transactions a day. Now the community is averaging 750,000 a day. That is an incredible progress charge. Fantom is already fifth within the variety of transactions, and it has zoomed previous a lot greater cash like Avalanche (CRYPTO:AVAX)

graph of transactions on various blockchains (November 2021)

Picture supply: CoinMarketCap.

2. It is suitable with Solana and Ethereum

One of many challenges within the blockchain universe is compatibility. It may be arduous to maneuver a digital pockets from one blockchain to a different. So within the blockchain universe — like Silicon Valley — a variety of these blockchain networks are frenemies. They’re all competing and wish to win. However additionally they should play good and work collectively.

Fantom, like most Ethereum opponents, is suitable with the Ethereum Digital Machine (EVM). This makes it simpler for engineers skilled with Ethereum to develop decentralized apps (dApps) for the Fantom blockchain. And it makes it simple for dApps on the Ethereum blockchain emigrate to the Fantom blockchain to economize. 

Solana is one thing of a maverick in that it is not Ethereum suitable. That places its blockchain exterior the Ethereum universe. However what’s fascinating is that Fantom can be within the Solana ecosystem. That flexibility is a power. No matter who comes out on high, Ethereum or Solana, Fantom ought to be simply high-quality as a result of it is suitable with each techniques.

3. Main gamers are backing the coin

In case you’ve performed any crypto investing, you’ve got in all probability heard of Sam Bankman-Fried. He is No. 58 on the Forbes 400 listing with a internet value of $26 billion, making him the richest crypto magnate on the listing. 

Bankman-Fried made some huge cash by beginning up the crypto buying and selling change FTX (CRYPTO:FTT). However he is additionally a notable (and early) investor in Solana. Bankman-Fried as soon as acquired in a Twitter battle over the value of the coin. He and a Twitter consumer named CoinMamba debated the value of the Solana coin at $2, $2.05, and $2.38. Lastly, on Jan. 9, Bankman-Fried tweeted, “I am going to purchase as a lot SOL has you’ve gotten, proper now, at $3. Promote me all you need.” The tweet grew to become well-known because the coin skyrocketed to $149 by the tip of the 12 months.

Bankman-Fried can be a serious backer of Fantom. His agency, Alameda Analysis, purchased $35 million in Fantom coin again in February. This occurred on the identical time that Fantom began to combine its blockchain with the Solana community.

Whereas Bankman-Fried is likely to be the richest backer of Fantom, an important might be Andre Cronje. He is the founding father of Yearn Finance (CRYPTO:YFI) and is without doubt one of the architects of the decentralized finance (DeFi) revolution. Cronje is a technical advisor to Fantom and helped develop its blockchain. He is already created a non-fungible token (NFT) market on Fantom that is a direct competitor to OpenSea, the biggest NFT market. Cronje can be engaged on a secret undertaking to be launched on the Fantom blockchain later this 12 months.

Given its help by main gamers within the trade, its superb velocity and stratospheric progress charges, and its low valuation versus different main cash, Fantom’s crypto is prone to soar much more in 2022. Whereas it in all probability will not repeat the 14,000% progress of final 12 months, the upside potential right here remains to be very excessive. I personal this coin and I am shopping for extra.

This text represents the opinion of the author, who might disagree with the “official” suggestion place of a Motley Idiot premium advisory service. We’re motley! Questioning an investing thesis — even certainly one of our personal — helps us all suppose critically about investing and make choices that assist us change into smarter, happier, and richer.


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