Thread by @JackNiewold

I've been doing a deep dive on Fantom 👻 over the last month and I'm convinced the token is undervalued.

But what if it's not just $FTM that's trading at an undervaluation?

What if it's the entire Fantom dApp ecosystem?

Here's why DeFi on $FTM will moon in 2022:👇

(thread)

A straightforward way to understand crypto assets is Total Value Locked: the $ value of assets tied up in a given protocol.

TVL might not predict a price pump, but it can tell you if a protocol is over/undervalued compared to peers.

And believe me, Fantom DeFi is undervalued:

Here's a look at Fantom DeFi apps compared to their Ethereum counterparts, all measured in terms of Mkt Cap/TVL.

These apps are direct copies of Ethereum apps, but they're trading at a discount relative to TVL.

(All except Cream/Scream)

We can wash, rinse, and repeat this exercise for Binance Smart Chain:

(Don't ask me how Jade, a Binance Smart Chain $OHM fork, trades below treasury value, I have no clue)

Even Avalanche dApps, some of them near and dear to my heart (shoutout to $JOE), has dApps that look downright pricey when compared to Fantom:

On average, we're looking at a fundamental undervaluation of about 20% compared to other EVM chains, more if you look at specific tokens.

Spookyswap in particular seems to be most undervalued.

When I see relative undervaluation in a protocol, I like to question my instinct:

What is the market seeing that I am not seeing?

I think the market values scale: Layer Ones have winner-take-all-effects, so Ethereum is worth 5 times its next biggest competitor.

Fantom is small, and thus the ecosystem is valued at pennies on the dollar when compared to bigger L1s.

But if Fantom can scale...

And I think it can, thanks to a war chest worth around $1 bilion (370 million Fantom, announced in August)

Then the ecosystem is ridiculously undervalued.

And both $FTM and its protocols will benefit enormously as they become fairly valued.

If you enjoyed the thread, please give me a follow @jackniewold, I do fundamental analysis on altcoins.

You can also check out my newsletter, cryptopragmatist.com/sign-up-twitte…, where we write weekly free newsletters and bimonthly paid reports.

Last thing: want to get this thread out to more
👻 believers?

Please give that first tweet a RT and/or a favorite, I've got it linked below for your convenience👇

Thanks!

https://twitter.com/JackNiewold/status/1478778289997049859?s=20

P.S. Some of the protocols are not perfect analogs, some are forks, some have new teams and new tokenomics.

Still, the rough idea stays the same.