Thread by @milesdeutscher

THREAD🧵: Why rotating out of $AVAX into $FTM could be the most lucrative crypto play of the year (Avalanche vs Fantom comparison).

Let's dive into why rotating out of $AVAX into $FTM could be a path to riches this cycle👇.

1/11.

$AVAX currently has a valuation of $30b v $FTM's $5b despite being compatible/inferior on most metrics.

AVAX has a TVL of 12.6b v FTM's 4.7b. However, FTM has a mkt cap/TVL ratio of 1.11 compared to AVAX's 2.35.

Meaning in TVL terms, FTM is undervalued by 53% vs AVAX.

2/11.

$AVAX looks to be nearing a local top on multiple metrics. Trade volume has slowed, and RSI looks overbought. This is not to say the macro run is over, but it's time to start developing a strategy to rotate profits.

Taking profits at ATH's is almost never a bad idea.

3/11.

$FTM on the other hand, is down 43% from its peak and is in an advantageous accumulation zone.

With $AVAX at ATHs, the risk of holding compounds as further downside is exposed. Whereas FTM's risk profile is positively asymmetrical.

4/11.

The $AVAX gas fees are currently outrageous and a huge problem. This massively limits AVAX's price growth potential, as the narrative shifts to L1s like FTM.

Currently, the average AVAX gas costs $1 vs $0.06 on FTM (varying depending on transaction type).

5/11.

Let's compare some metrics:

Adressess: $FTM 1.2m v $AVAX 912k.

Daily transactions: $FTM 650k v $AVAX 615k.

Max TPS: $FTM 36,000 v $AVAX 6,500/subnet

Gas Fees: You already know the answer..

Odd that $AVAX is valued 6x higher despite inferiority across major metrics.

6/11.

When looking at L1s, Curve.fi volume is a great indicator of where liquidity is going.

$FTM has $43m volume, vs $AVAX's $41m despite a market cap discrepancy of 6x between the two chains.

7/11.

I'll point out some reasons for this discrepancy in mkt caps:

$AVAX is more decentralised, more accessible on exchanges (especially US market), and has more current developer activity).

BUT, even with those factors considered, 6x still seems pretty ridiculous.

8/11.

Upcoming catalysts for FTM:

- Binance Cloud CEX in December (brings much needed accessibility to FTM and its eco in the US).

- Coinbase listing is imminent.

- FVM launching in early 2022.

9/11.

Crypto is a game of riding waves. We rode the $AVAX wave and it rewarded us handsomely. But now its time to look elsewhere, and the opportunity $FTM is currently presenting is far too tantalising.

10/11.

Disclosure: I own both Fantom and Avalanche and am a big fan of both projects. But this is a game of opportunity cost, and the cost of missing out on the imminent $FTM rally is too great.

Make sure to share and like this thread if you found it useful!♥️

11/11.