Fantom Q2 Performance: Financial Metrics React To Sonic Blockchain Anticipation

The Fantom blockchain saw mixed show successful the 2nd 4th (Q2) of the year, with cardinal fiscal metrics cooling amid the broader cryptocurrency marketplace downturn and the Fantom Foundation’s announcement to rebrand arsenic Sonic Labs, according to a caller study from information quality steadfast Messari.

FTM Market Cap, Revenue, And Token Economics 

After outperforming successful Q1, Fantom’s circulating marketplace cap decreased 41% quarter-over-quarter (QoQ) from $2.8 cardinal to $1.7 billion. However, the token’s marketplace headdress is inactive 94% higher year-over-year (YoY) compared to Q2 2023.

Fantom’s marketplace headdress decrease. Source: Messari

Revenue, which measures state fees collected by the network, fell 42% QoQ from 1.8 cardinal FTM to 1.0 cardinal FTM. In USD terms, gross decreased 38% QoQ from $1.2 cardinal to $0.8 million. 

This diminution follows a spike successful Q3 2023 owed to enactment astir non-fungible token (NFT) inscriptions, but according to Messari, gross is expected to rebound arsenic on-chain enactment picks up crossed the broader crypto space.

The study besides highlights changes to Fantom’s token economics during the 2nd quarter. The Ecosystem Vault and Gas Monetization programme were introduced successful Q4 2022, reducing the pain complaint of transaction fees from 30% to 5% and reallocating the remaining 25%. 

By the extremity of the 2nd quarter, the circulating proviso of the protocol’s autochthonal token FTM reached 2.8 billion, with an annualized ostentation complaint of 3% – up 25% quarter-over-quarter.

Fantom On-Chain Activity Slows

Fantom’s on-chain enactment besides trended little successful Q2. Daily transactions averaged implicit 223,000, down 10% QoQ from 247,000. Daily active addresses fell 21% QoQ to 31,900, though the study notes a reversal of this inclination towards the extremity of the quarter. 

New code maturation besides slowed, dropping 47% QoQ to 5,000 per time connected average. However, the study highlighted immoderate affirmative developments, including an summation successful the fig of progressive validators connected the network. 

Fantom’s caller addresses fluctuations successful Q2. Source: Messari

After a governance connection reduced the staking request from 500,000 FTM to 50,000 FTM, the fig of progressive validators grew 6% QoQ to 58, with 14 having little than 500,000 FTM self-staked.

Staked FTM besides saw inflows for the 2nd consecutive quarter, expanding 5% QoQ to 1.3 cardinal tokens. But the full dollar worth of staked FTM decreased 39% QoQ to $780.4 cardinal owed to the token’s terms depreciation.

Fantom’s full worth locked (TVL) successful decentralized concern (DeFi) applications decreased 28% QoQ to $91.2 million, ranking it 42nd among blockchain networks. However, TVL denominated successful FTM accrued 22% QoQ, suggesting superior inflows contempt the token’s terms decline.

The 1D illustration shows FTM’s terms downtrend recorded successful the past month. Source: FTMUSDT connected TradingView.com

At the clip of writing, FTM was trading astatine $0.3345, up conscionable 1% implicit the past 24 hours. In the monthly clip frame, the coin is down 27% implicit the past period amid the broader marketplace decline. 

Featured representation from Shutterstock, illustration from TradingView.com