The Fantom network is coming back into focus.
Over the coming weeks, Layer 1 will be undergoing its most important network upgrade to date.
In anticipation of this $FTM (+0,14%)the network's native token has recorded a price increase of around 200% in the last 30 days.
Here's everything you need to know - in a nutshell:
Fantom is an alternative layer-1 network that was launched by crypto and DeFi OG Andre Cronje, among others, and is currently being co-developed.
- Fantom is a so-called Directed Acyclic Graph (DAG), which allows parallel execution of transactions compared to a classic blockchain and thus makes the network more scalable.
- In the last bull run, Fantom was one of the most hyped alternative layer 1s and had a total value locked of almost USD 7.7 billion at its peak.
- Since 2022, however, the network has not only seen a sharp decline in activity, but also billions in capital outflows.
The Sonic upgrade is now set to is intended to significantly increase Fantom's performance and thus bring developers and users back to layer 1.
- In addition to the introduction of its own execution environment, the Fantom Virtual Machine (FVM), this includes optimizations in data storage and the consensus mechanism. You can find a technical deep dive on Sonic in the sources.
During test runs on the Sonic testnet, the network was able to achieve a throughput of around 2,000 transactions per second.
- This is roughly equivalent to the current utilization of the Solana network - or more than ten times the average utilization of all Ethereum Layer 2s.
Outlook
The trade around alternative layer-1 blockchains has experienced a renaissance in recent months.
With the use of DAG technology and its unique consensus mechanism, Fantom has enough differentiation to capture the imagination of investors.
The extent to which they can attract developers to their network is another matter.
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Sources
Background information on Andre Cronje: https://tinyurl.com/3b42xevs
Capital flows on Fantom: https://tinyurl.com/4ucd7rbv
Technical deep dive on the Sonic upgrade: https://tinyurl.com/5bxep5w5
Performance results from the Sonic testnet: https://tinyurl.com/29dmyd7b
Solana network utilization: https://tinyurl.com/2cvzs7pc
Utilization Ethereum Layer-2s: https://tinyurl.com/5at5jc8c
