Fantom Outperforms CoinDesk 20 Over Past Week as TVL Jumps

As an experienced analyst, I see the recent surge in Fantom’s FTM token as a promising sign for investors. With a 13% increase over the past week, outperforming the broader market, it’s clear that confidence is growing in this blockchain. The Sonic upgrade and the subsequent boost to transaction speeds and finality are significant improvements that have caught the attention of the crypto community.

The past week has seen impressive gains for Fantom’s FTM token on the Fantom blockchain, with favorable market sentiment surrounding the upcoming Sonic upgrade and rising total value locked (TVL) within the protocol.

As an analyst, I’ve observed that FTM has experienced a significant surge in value over the past week, reaching approximately 81 cents based on data from CoinDesk Indices. In contrast, the CoinDesk 20 (CD20), which tracks the top digital assets, has only risen by a modest 1.5%.

Over the past few weeks, the Fantom Foundation has been releasing its newest update, named Sonic. So far, 25 out of the total 60 nodes have successfully implemented this upgrade, as indicated by the dashboard. The chain will undergo an official upgrade when the new software is installed on two-thirds of the nodes.

As an analyst, I’d rephrase that statement as follows: Based on expectations, Sonic is projected to handle up to 2,000 transactions per second (TPS) with a finality time of 1.1 seconds. This is a significant improvement compared to the approximate 2.5 TPS we observed in on-chain data during the previous month.

Investors might also be interested in a recent bump in the chain’s TVL.

Based on DeFi Llama’s data, the total value locked (TVL) in Fantom reached $203 million on May 16. This represents a significant surge from the $111 million TVL recorded just two days prior. The uptick can be attributed to a widespread growth in TVL across numerous decentralized exchanges, lending platforms, yield optimizers, and other decentralized applications (dApps).

Many dapps that support the Fantom chain have seen their TVL rise by 10%-20% during the last week.