Fantom blockchain had a mixed performance in the second quarter (Q2) of the year, with key financial metrics cooling amid the broader cryptocurrency market. recession and the Fantom Foundation’s announcement that it is changing its name to Sonic Labs, according to a new report from data intelligence firm Messari.
FTM Market Cap, Revenue, and Token Economics
After outperforming the first quarter, Fantom's outstanding shares market capitalization The token’s market cap decreased by 41% quarter-on-quarter (QoQ), from $2.8 billion to $1.7 billion. However, the token’s market cap is still 94% higher year-on-year (YoY) compared to Q2 2023.
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Revenue, which measures gas fees charged by the network, fell 42% QoQ, from 1.8 million FTM to 1.0 million FTM. In dollar terms, revenue decreased 38% QoQ, from $1.2 million to $0.8 million.
This decline follows a surge in Q3 2023 due to activity around non-fungible token (nft) listings, but according For Messari, revenue is expected to recover as on-chain activity picks up in the broader crypto space.
The report also highlights changes to Fantom’s token economy during the second quarter. The Ecosystem Vault and Gas Monetization program were introduced in Q4 2022, which reduced the token consumption rate. transaction fees from 30% to 5% and reallocate the remaining 25%.
At the end of the second quarter, the circulating supply of the protocol’s native token, FTM, reached 2.8 billion, with an annualized inflation rate of 3%, up 25% from the previous quarter.
Fantom on-chain activity slows down
Fantom’s on-chain activity also showed a downward trend in Q2. Daily transactions averaged over 223,000, down 10% from 247,000 in the previous quarter. active addresses fell 21% quarter-on-quarter to 31,900, although the report notes a reversal of this trend towards the end of the quarter.
New address growth also slowed, falling 47% QoQ to 5,000 per day on average. However, the report did highlight some positive developments, including an increase in the number of active validators on the network.
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After a governance proposal reduced the staking requirement from 500,000 FTM to 50,000 FTM, the number of active validators grew 6% QoQ to 58, of which 14 had less than 500,000 FTM auto-stakes.
FTM in play also saw entries for the second consecutive quarter, increasing 5% QoQ to 1.3 billion tokens. But the total dollar value of staked FTM decreased 39% QoQ to $780.4 million due to token price depreciation.
Fantom’s total value locked (TVL) in decentralized finance (DeFi) applications decreased by 28% QoQ to $91.2 million, ranking it 42nd among blockchain networks. However, TVL denominated in FTM increased by 22% QoQ, suggesting capital inflows despite the token price decline.
At the time of writing, FTM was trading at $0.3345, up just 1% over the past 24 hours. On a monthly time frame, the coin is down 27% over the past month amid the broader market decline.
Featured image from Shutterstock, chart from TradingView.com
