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DEC 25, 2023

Altcoin Review: Case Study—FANTOM

by Liquidity Dojo

With altcoin season upon us, Fantom (FTM) emerges as a contender worth watching. This article delves into the platform's technical prowess, its native token $FTM's role and value, recent developments like the Fantom-Sonic testnet, and potential price scenarios based on technical analysis. Ready to explore Fantom's potential? Buckle up, Let's analyse

Ho-Ho-Hodling the Altcoin Season: A Look at Fantom's FTM

It's the Ho-Ho-Hodl season of love, merry Christmas readers. On Santa's list, we have a task to review altcoins and that's what we're going to do today. JSYK, Altcoins or alts as we know them, are cryptocurrencies that exist on the blockchain aside from BTC. A lot of altcoins have emerged since the birth of ETH, some on L1, some on L2, some as oracles, all together pushing for a fully working decentralized blockchain ecosystem.
In the last 2 years, we've seen a decline in the market cap of cryptocurrency, generally due to bearish conditions (LUNC saga, FTX saga, and inflation issues). In the last 3 months, there's been a rise in price of full market cap resulting from factors like #BitcoinETF proposals, airdrops, etc. As the dominance of BTC reduces to 48.5% as of today, some altcoins are surging with full force, producing multiples like 2x, 3x, and even 5X, and in return hinting at the "altcoin season." Let's take a look at some of them one by one. Today, we're wrapping up our virtual presents with a closer look at Fantom (FTM), a fast, scalable, and secure platform fueling the future of decentralized applications (dApps).
Fantom Under the Microscope:
  • Built for Builders: Fantom boasts a powerful trifecta of consensus mechanisms – Proof-of-Stake, aBFT, and Leaderless – ensuring a robust and secure foundation for developers to craft their decentralized dreams.
  • Fueling the Network: $FTM, the native token, powers transaction fees, gas charges, and governance, essentially acting as the lifeblood of the Fantom ecosystem.
  • Tokenomics with Bite: With a capped supply of 3.175 billion FTM and over 65% already in circulation, scarcity meets utility, offering a compelling proposition for hodlers and network participants.
  • Staking Your Claim: Earning a cool 6.15% APR just for holding FTM? Who wouldn't be tempted? Stake for a year and watch your stash grow while securing the network.
Fantom's Sonic Boom:
The recent launch of the Fantom-Sonic testnet sent a sonic boom through the cryptosphere, igniting a price surge that had Santa Claus scratching his beard in awe. So, where do we go from here?
Charting the Path Forward:
weekly chart on FTM/USDT
weekly chart on FTM/USDT
Using trusty ol' technical analysis, we've mapped out three potential scenarios for FTM:
Scenario A: Bullish Blitzkrieg: A relentless surge fueled by positive news and the general altcoin frenzy.
Scenario B: Healthy Hiccup: A breakout followed by a retracement presents a sweet entry point for the discerning investor.
Scenario C: We see a fake breakout on FTM and then a sharp rejection in price, leading to a break of structure to the downside. Then derivatives traders take a short position upon retracement.
Trading Tales:
Remember, dear readers, even Santa can't predict the market with perfect accuracy. While scenarios A and B offer tempting opportunities for spot and derivatives traders, scenario C serves as a stark reminder of risk management. Only invest what you can afford to lose, and trade with a healthy dose of caution.
Where to Find Fantom's Festive Cheer:
Ready to join the Fantom Fiesta? You'll find FTM listed on a sleigh-full of reputable exchanges, waiting to be unwrapped.
So, this holiday season, don't get stuck stocking your wallet with coal. Take a bite out of the Fantom apple, and who knows—you might just discover a crypto gem nestled amidst the festive cheer.
Please note: This article is for informational purposes only and should not be considered financial advice. Always do your own research before making any investment decisions.
Merry Christmas, and happy hodling!
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