We need to have a deeper understanding of the Money Flow in the Market. Then, we're about to know which projects can attract cash flow and which ones can keep cash flow. Please refer to Money Flow in the Crypto Market with our threads below.
1/ How Does Money Flow In Crypto?
1.1/ Fiat to Bitcoin
The Crypto Money Flow Cycle begins with Fiat. Investors will take cash in exchange for Stable Coin, and the first thing most people do after owning Stable Coin is the exchange for Bitcoin - King of Cryptocurrencies.
1.2/ Bitcoin to Top-Cap Projects
After investors have bought Bitcoin, Bitcoin's price will increase, and investors will take profits and move the gains to some smaller projects than Bitcoin, which are Top Cap projects such as ETH, SOL, BNB, FTM, and DOT, etc.
1.3/ Top Cap to Mid-Cap Projects
A lot of money flows to Top-Cap causes its price to increase rapidly, and most of the Top projects have their ecosystems. When the top-cap projects grow, the cash flow will tend to smaller projects. These projects are called Mid-Caps. @Bytenextio
@Bytenextio 1.4/ Mid Cap to Low-Cap Projects
After the money flows to the Mid-Cap, this is where the money flows first to perform critical functions, such as providing liquidity, swap, and farming in an ecosystem. After that, the cash flow tends to continue to flow to Low-Cap projects
@Bytenextio 1.5/ Low-Cap - End Point
With the small-capitalization of Low-Cap projects, when the cash flows in, the projects tend to increase in price very quickly in a short time; that's why these types of Altcoins tend to rally multiple the gains such as 2x, 4x, 10x, or even more.
@Bytenextio 1.6/ Back to Bitcoin or Selling into Fiat
When Small Cap Altcoins rally exponentially, this sort of euphoria-fuelled buy-side pressure precedes one of two things: Back to Bitcoin or Selling into Fiat; the investors will save Fiat and Stable Coin to wait for the next cycle.
@Bytenextio So that is all Money Flow in Crypto Market; it is not sure which projects or tokens, but it happened in the past with the same processing. We should follow up the market closely to catch this money flow at the right time. We did refer to this from @rektcapital
@Bytenextio@rektcapital 2/ Money Flow in Fantom Ecosystem
Firstly, Let have an overview of Fantom Ecosystem development in 2021 to remember impressive numbers and significant milestones. Then we will comprehend why Smart Money is flowing to Fantom Ecosystem in Jan 2022 and beyond!
@Bytenextio@rektcapital@fantom@SpookySwap@Spirit_Swap@CoinZoo 2.2/The following reason is about @GeistFinance , Geist's TVL reached $3.7B in just four days after launching. It was a massive move because Geist Finance is a lending project being the backbone of Defi in Fantom supporting investors can leverage their budget to optimize profits
@Bytenextio@rektcapital@fantom@SpookySwap@Spirit_Swap@CoinZoo@GeistFinance 2.3/ Besides, Fantom Foundation Announces Massive Incentive Program to Reward DeFi Developers with 370 million $FTM. On top of that, Fantom Opera is also a friendly, eco chain with EVM compatibility. That's why Fantom Opera attracted many developers in a short time.
@Bytenextio@rektcapital@fantom@SpookySwap@Spirit_Swap@CoinZoo@GeistFinance 2.4/ After expanding over 100+ Dapps on Fantom Opera, all projects were trying to partner and integrate with many projects out of Fantom Opera. It has made products diverse & potential. That's also why TVL in Fantom did not flow back to another chain.
@Bytenextio@rektcapital@fantom@SpookySwap@Spirit_Swap@CoinZoo@GeistFinance 2.5/Finally, When Fantom Ecosystem is over 200 projects. Andre Cronje and Daniel announced an experiment on Fantom in 2022: Ve(3,3) Mechanism on Defi. At that moment, Fantom prices & Total Value Lock increased rapidly; Fantom became the most mentioned on Twitter on the same day.
@Bytenextio@rektcapital@fantom@SpookySwap@Spirit_Swap@CoinZoo@GeistFinance 2.6/ After all, Fantom TVL has grown 2300% from Aug 2021 until Jan 2022. However, the Investor is still optimistic about the future of Fantom because there are still gaming, metaverse & meme projects which haven't thrived yet. "2022 may be the year of $FTM" being said.
@Bytenextio@rektcapital@fantom@SpookySwap@Spirit_Swap@CoinZoo@GeistFinance 2.7/ As Layer Theory, Money will flow from Layer 1 to Layer 4 in An Ecosystem. However, it may only happen in an ecosystem full of Native Infrastructure Legos. Fantom Ecosystem may be an exception. It was from Layer 1 to DEX/AMM - Lending - Other Dapps like it happened before.
@Bytenextio@rektcapital@fantom@SpookySwap@Spirit_Swap@CoinZoo@GeistFinance 2.8/ If projects could get money from other chains, Smart Money will go to Bridges & DEX/AMM in Fantom to move assets, swap and add liquidity, or some mid-cap projects with many token utilities such as add liquidity, stake & farm.
All On-Chain Metrics are so impressive with @FantomFDN 🚀Although the market is going crazy, #Fantom Projects keep developing day by day🔥
Have a look at the metrics last week in threads below🎉
No surprise when people call #Fantom Opera is a DeFi Chain. It is just a tiny part of DeFi in FTM, If someone's ever experienced FTM, they will bond with FTM Dapps for a long time🚀
DeFi 1.0 and 2.0 have been lackluster in capital efficiency💰. Besides, holders and stakers have not received adequate rewards for supporting the projects. Then, the model Ve(3,3) was born. Read more in the threads below🎉
1.1/ Since DeFi burst onto the scene back in August 2017, the TVL has risen exponentially. At the end of 2018, TVL was around $300 million. By 2019 it was $800 million. However, the ATH of 2022 saw an astonishing of about $300 billion, now approximately $240 billion.
1.2/When it comes to DeFi, we can mention benefits of DeFi 1.0 included
- Easy Accessibility
- Low fees and high-interest rates - Increased transparency and security
- Functional autonomy
Represent for DeFi 1.0 projects such as @yearnfinance@CurveFinance@Uniswap@SushiSwap
As blockchains have expanded rapidly, moving assets from one blockchain to another has been essential for a thriving defi market; that way, the cash flow is more optimally utilized.
@Tweak896@michelle_crypto 1.1/ The current market situation is in a bear market. Besides, Bad news like hacks, rug pulls, or bubbles are all signs of difficulties for blockchain projects. That makes the project team always have to work hard and focus on long-term goals.
@Tweak896@michelle_crypto 1.2/ During the bear market period, there are a few potential Legos that we should pay attention to in 2022 such as CeDeFi, NFT, Insurance, Storage, and Multichain as well as CrossChain. In this article, let's study Multi-Chain - Cross-Chain.
This is why @FantomFDN
is called Defi Network. Of Course, we have two fantastic guys more, which are @_veDAO_ & @0xDAO_fi . Do not miss them in the bear market.🚀
What are your favorite NFTs? Do you think 2022 will be the year of the NFT Revolution? No matter how the market goes, #Fantom NFT projects are doing their best to explode in @FantomFDN Ecosystem.