FTM is Trading at Half AVAX's Multiple
Fantom (FTM) is trading at half Avalanche's (AVAX) total value lock to market cap multiple.
The Fantom (FTM) team released a 2021 recap – it’s been an impressive year for the blockchain. We’re going to be comparing Fantom’s performance to similar competing L1’s like Ethereum (ETH) and Avalanche (AVAX). Comparisons to Solana (SOL) are not ultimately useful, as the extremely low cost of transactions on Solana inflates its numbers across the board.
*As a point of clarification: most of these numbers are representative of the end of December ‘21 or the first week of January ‘22; given the market crash over the past week, expect everything to have traced back a bit.
DeFi: Two Fantom dApps hit over $1.5B in total value locked (TVL): SpookySwap and Tomb Finance (these are down now from their peak). DeFi is an integral part of comparing L1 blockchains, so this is a big deal for the Fantom ecosystem despite recent troubles.
Daily Transactions: Daily transactions went from 4,000 to 750,000 throughout 2021. Avalanche is averaging around 650,000 daily transactions and Ethereum averages ~1.2M.
Unique Addresses: This is how many addresses actually exist in the ecosystem. Fantom’s number of unique addresses increased from 5,040 to 1.5M over the course of the year. Ethereum has 183M unique addresses and Avalanche has 1.5M.
Active Addresses: This is how many of the existing addresses actually performed transactions. Fantom had 341,000 active addresses, while Ethereum had 566,000 and Avalanche had 798,000.
Total Value Locked: As of writing this article, Fantom’s entire DeFi ecosystem has a TVL of $5.2B. For comparison, Avalanche has $10.7B and Ethereum has $145B.
Market Cap: Here is where the rubber meets the road: Fantom’s market cap is only at $6.2B. Close competitor Avalanche is sitting at $22.3B and market leader Ethereum is up at $369B. This puts FTM at a 1.2x market cap to TVL multiple, AVAX at a 2.1x multiple, and ETH at a 2.5x multiple.