Looking at the market state, it seems unlikely for any cryptocurrency and/or DeFi chain to jump back soon. However, Fantom repudiated that hurdle by marking a stellar growth on the DeFi front.
Fantom Takes Over Binance
As per the data at the time of this report, Fantom has been leading the rise of DeFi TVL as the network transcended the Binance Smart Chain to take the #3 spot. With $12.4 billion locked in terms of the total value, BSC had to give up the position as some $500 million lacked.
For Fantom, this surge was unexpected since merely 48 hours ago, the DeFi network had dropped to $7.9 billion. However, its 129 protocols managed to push the limits, propelling the TVL by 60% in the following two days.
Although the network has been in a good place, the token’s performance has been hingeing on the broader market cues. Dropping by a solid 40.6% in 5 days, the altcoin has just managed to stay above the critical support of $1.8902.
Although a 15.8% recovery green candle was observed yesterday, the charts repainted a red candle as FTM was down by 8.62% at the time of this report.
The one commonality between both the chains is that their adoption hasn’t slowed down regardless of the prevalent market conditions. Multiple dApps such as Chainstack, Matrixswap, etc., have been making the most of the Fantom chain for their expansion.
But this isn’t the only reason why Fantom shot up, as even BSC has seen many a dApps build this week on the chain.
Once again the gas fees could have been a deciding factor in investors’ decision of choosing a chain. Relatively newer chains are being preferred over older chains such as Ethereum, Binance Smart Chain due to this reason. In fact just last week, Terra too surpassed BSC to stand at the #2 spot.
However, the network transaction fees for Fantom at $0.2 were indeed lower than Binance Smart Chain’s $0.32.
Thus, this could be a driving factor for investors to jump onto Fantom, but regardless of the cause, Fantom is looking to cement itself in its new position.
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