This crypto market phantom may be poised for a major breakout

Phantom (FTM 8.35%) was supposed to be one of the big breakout cryptos of 2022. Remember when people claimed it at the beginning of the year as the next Ethereum (ETH 10.59%)the next Cardano (ADA 6.56%) or the next one Solana (SUN 9.23%)? Ever since it burst onto the scene in December 2019, Fantom has attracted users with its super-fast blockchain, low transaction fees, and exciting opportunities related to decentralized finance (DeFi). But the much-anticipated Fantom gains never materialized in the first half of 2022.

Now it seems that the big breakout moment may finally arrive. Even during the crypto downturn, Fantom has maintained its value, and its overall market cap is just south of $1 billion right now. Once it reaches $1 billion, it will enter Top 50 crypto territory and reappear on investor radar screens. Best of all, many interesting DeFi projects continue to be built on the Fantom blockchain. So is it finally time to invest in the phantom of the crypto market?

Terribly good performance in a scary market

What is interesting is how well Fantom has held up during the market downturn. If you look at the performance of the crypto market recently, your trading screen is going to look scary. Lots of red everywhere. But there have been some highlights. Phantom, for example, is up nearly 15% in the past week.

Image source: Getty Images.

Overall, proof-of-stake Layer 1 blockchains like Fantom have enormous long-term potential due to their fast transaction speeds and low costs. Investing in one of these blockchains is much less risky because they come with their own unique ecosystems. People build on top of them and create value with each new project. Moreover, they are willing to “unlock” the value of their crypto tokens in these projects. Fantom has always had a very high Total Value Locked (TVL) figure, which is a useful metric for assessing how dedicated users are to the platform and the health of the overall ecosystem.

The psychologically important $1 billion market cap

With its current trading price of $0.30, Fantom has a total market capitalization of approximately $800 million, ranking it as the #57 crypto on CoinMarketCap right now. That’s why the $1 billion market cap is so important – not only is it psychologically important to investors (similar to being a “unicorn” in the Silicon Valley world), but it also means that Fantom will be much more visible to the average person. investors who may be concerned about holding obscure crypto tokens. Some high-profile analysts are already predicting that $0.46 could be the next support level for Fantom. At that price, Fantom would easily eclipse a total market cap of $1 billion.

New projects on the horizon

Primarily, Fantom has made a name for itself in decentralized finance, or DeFi. If you look at a list of the top projects on the Fantom network right now, you’ll see that almost all of them are decentralized exchanges (DEXs) or DeFi protocols, including SpookySwap, SpiritSwap, and Curve. It makes sense primarily because Fantom is known for its high speeds and low costs. If you process a high volume of trades on a DEX, you need these high speeds and low costs to create an efficient market. A catalyst for Fantom could be an aggressive move into a more diversified set of crypto opportunities. Imagine a new NFT (non-fungible token) platform or a new blockchain gaming platform.

Will this phantom finally break free?

Fantom is trading for just $0.30 right now. Even if it only hits the $1 mark in the next 12 months, you’ll still get a triple return on your investment. But that might be underestimating things. After all, at the beginning of 2022, some predicted that Fantom could be next Shiba Inu, with 10 times return or higher. The phantom of the crypto market has been waiting patiently in the wings, preparing for the biggest performance of its life. And it could come as early as the second half of 2022.