Thread by @milesdeutscher

A thread on why I think $FTM can 5-10x in 2022🧵.

I'll cover:

- Why Fantom is one of the most undervalued projects in crypto
- How it can 5-10x in 2022 (fundamental analysis and upcoming catalysts)

Let's dive in 👇

1/25

$FTM was 2021's 4th best performer, increasing a massive 14,474%.

Yet, it still finds itself lagging behind other L1s like $AVAX, $SOL and $ADA, despite possessing the qualities to command a top 10 ranking (currently 36).

Let's dive into what makes $FTM special 👇

2/25

$FTM uses a directed acyclic graph (DAG), meaning it is highly scalable and offers near-instant transactions at almost no cost.

3/25

Its advanced consensus algorithm, Lachesis, allows $FTM to offer:

- Finality in ~1 second: vs $SOL ~11s, and $AVAX ~3s
- TPS of 10,000+ (end goal of 300k+)
- Extremely cheap transactions (cheaper than $AVAX and comparable to $SOL and $LUNA)

4/25

https://twitter.com/FantomFDN/status/1465751057724809224?s=20

Considering the blockchain trilemma, the only drawback to $FTM is centralisation (50 validators), BUT:

1) @FantomFDN plans to on board 1000+ validators over the next couple of years
2) Investors have shown they simply don't care (as evidenced by SOL and BNB).

5/25

L1s are the backbone of DeFi, NFTs and the Metaverse.

Hence, fast, cheap and scalable L1s like $FTM offer enormous scope for growth as blockchain utilisation rapidly expands.

I believe that $FTM's superior tech and ecosystem position it nicely to outperform in 2022.

6/25

So, we've established that $FTM's tech is impressive, but what makes $FTM undervalued today?

7/25

Firstly, it's size relative to other blockchains means it still has room to grow.

$FTM is still small compared to other L1s, meaning less capital inflow is required to achieve a 5-10x multiple.

Take a look at what the Fantom price could be at competitor's mkt caps:

8/25

As profits filter down from the bigger L1s such as $SOL and $BNB, projects with smaller market caps like $FTM stand to benefit.

$FTM presents a valuable opportunity to those who missed the recent explosions of $SOL and $AVAX.

9/25

2. $FTM is extremely undervalued in TVL terms. TVL (total value locked) represents the dollar amount locked in the ecosystem. Thus, is a great indicator of where DeFi liquidity is flowing.

$FTM is currently ranked 6th for TVL, yet only has a Mcap/TVL ratio of 1.🤔

10/25

Take a look at what $FTM's price would be if it possessed the same Mcap/TVL ratio of its competitors.

It's clear based on this metric that $FTM's price is severely undervalued relative to other chains.

11/25

This means that in TVL terms: At today's prices, you're essentially buying $FTM at a 2.32x discount to $AVAX, 4.94x discount to $SOL etc.

This discrepancy should even out over time, thus providing us with a huge opportunity to take advantage now.

12/25

Total TVL is almost touching ATH's, despite the price being down 32% since then (so even relative to $FTM itself you're getting a discount).

TVL has grown 36% over the past week alone, indicating a strong flow of liquidity back into the $FTM ecosystem.

13/25

3. The Fantom network is one of the most utilised chains, with over 561k daily transactions. At peak, the network reached 1.8m transactions - something not many other chains have achieved.

Daily transactions have been consolidating whilst price/TVL are rising (bullish).

14/25

This means $FTM has more daily transactions than $AVAX (470k) and $ADA (500k).

Yet, it's price is still 4.83x and 8.79x away respectively.

15/25

4. Fantom has 1.46m active adressess. This is the SAME amount of addresses as $AVAX, and 1.2m more than $ADA.

This number has been rapidly growing, as shown by the graph below.

That's a lot of addresses for a network valued at only $5.8b..

16/25

5. Developer activity on $FTM is increasing rapidly, and has now overtaken $AVAX and is comparable to both $MATIC and $LUNA.

This suggests many developers are actively building on the Fantom network, which will stimulate the on-boarding of new users over the long term.

17/25

So why is it that every $FTM metric we look at indicates that it is undervalued compared to other chains?

Luckily for us, crypto is an inefficient market. Price often lags behind key metrics - thus providing us a valuable opportunity to capitalise on this discrepancy.

18/25

Now let's explore some upcoming catalysts which can assist $FTM to 5-10x in 2022.🍿

19/25

1. @danielesesta has hopped on the $FTM train and has implied BIG things are coming in 2022. Fantom integration into Dani's ecosystem will be extremely powerful.

@danielesesta x @AndreCronjeTech is a match made in heaven. Don't underestimate the power of the frog nation.

20/25

2. Accessibility. $FTM simply hasn't been given the opportunity to appreciate due to lack of US retail access.

But, FELIX (Fantom's Binance powered CEX) is coming early Q1 which will finally give retail both access to FTM's ecosystem and provide much needed liquidity.

21/25

3. Coinbase. It's no secret the listing is imminent. FELIX + Coinbase in 2022 will be a double whammy of retail accessibility.

Coinbase has added 4.6M $FTM tokens in the last 30 days (they'll need way more to list, but could be confirmation that a listing is coming).

22/25

4. FVM. Fantom Virtual Machine is coming in 2022/2023 and will massively increase scalability, allowing the network to both expand and become more secure.

I'm expecting the price to rise significantly "in the hype" to FVM as more info is released. Mega bullish.

23/25

5. A few more potential catalysts

- @AndreCronjeTech alpha 👀
- Artion v2 (NFTs)
- AAVE $FTM integration
- Fantom Name Service
- @harryyeh 😉

24/25

It's clear there is A LOT to look forward to, and that $FTM is one the most undervalued projects in crypto right now. I'm personally continuing to accumulate, with accelerated purchasing during dips.

Retweet and share this thread if you got some value from it.❤️

25/25

Credit to @JackNiewold for the inspiration/data.

As well as @killakween444 (sources: @DefiLlama, @FantomFDN, @FtmScanHQ, @coingecko, @github)

If you’d like to watch my expanded thoughts on this thread and learn more about the potential of $FTM in 2022, check out the video I posted on my YouTube.👇