- The Fantom price has been in a rebound this week.
- Its DeFi ecosystem has grown by over 50% in the past 24 hours.
- Fantom seems to be undervalued against its peers.
The Fantom price rebound paused on Thursday even as the network’s ecosystem continued to grow. The FTM coin is trading at $1.9145, which is about 48% above the lowest level this month. Its market cap is currently at $4.8 billion.
Is FTM undervalued?
Fantom is a fast-growing Ethereum-killer that uses the Byzantine Fault Tolerant (BFT) technology. Apps built using the network have a higher throughput and lower costs than Ethereum.
As a result, the network’s growth has been strong. For example, in DeFi alone, data compiled by DeFi Llama shows that its TVL has grown to over $11 billion. In the past 24 hours alone, the value has grown by more than 50%. As a result, it is tied at third place with Avalanche.
Fantom has 186 apps in its ecosystem, with the biggest one being Multichain, which has a TVL of over $6 billion. 4 of its apps have a TVL of over $1 billion while most of them have a TVL of $100 million and above.
Therefore, there are concerns about whether Fantom is undervalued. For one, it has a market cap of over $4.8 billion while Avalanche’s AVAX is valued at more than $20 billion. The same is true with other blockchain platforms that are bigger than Fantom.
For example, the NEAR protocol has a TVL of about $600 million while its token is valued at over $7 billion. Other examples are blockchain projects like Algorand and Tron. And according to DeFi Llama, its TVL to market cap is 0.43. This is the lowest figure among the top ten platforms as you can see below.
It is unclear why this valuation has happened considering that Fantom seems to be growing at a faster pace than other platforms. For example, it has grown its TVL by over 25% in the past month.
Fantom price prediction
The daily chart shows that the FTM price formed a strong resistance level at $3.93 in October last year and January. It then dropped and found a strong support at $1.15. On the daily chart, the pair is trading at the 25-day and 50-day moving averages while the MACD is slightly below the neutral level.
Therefore, a clear rebound will only be confirmed if the coin moves above the two moving averages. If this happens, the next key resistance to watch will be at $2.5.
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