Fantom Network Reaches 50 Million Unique Addresses: What Does It Mean for Daily Active Users and Transaction Volume?

On April 8th, it was announced that Fantom has recently reached a new milestone with over 50 million unique addresses on the network. However, Token Terminal data shows that the number of daily active users of FTM has decreased in the past 30 days. Dune data shows that Fantom’s online transaction volume has also decreased. （AMBCrypto）

More than 50 million addresses on the Fantom chain

The Fantom network has made a significant milestone by reaching over 50 million unique addresses. However, recent data shows a decrease in daily active users and online transaction volume. What could be the reasons behind these trends, and how will they affect the network’s future? In this article, we will explore these questions and more.

What is Fantom Network and why is it gaining popularity?

Fantom is a decentralized, scalable, and secure blockchain platform designed for smart cities and enterprises. It uses a consensus mechanism called Lachesis to achieve high throughput, low latency, and finality in transactions. It also supports EVM-compatible smart contracts and interoperability with other blockchains through the bridge system.
Fantom has several advantages over other blockchain platforms, such as high speed, low fees, and energy efficiency. It can process up to 300,000 transactions per second, with an average confirmation time of 1 second and a fee of 0.0001 FTM. It also consumes 1000 times less energy than Bitcoin and Ethereum, making it more sustainable and eco-friendly.
Fantom’s popularity has been growing steadily, thanks to its innovative technology, strong community, and partnerships with leading companies and institutions. Some of the notable collaborations include the UAE government, Binance, Chainlink, and ANKR.

What is the significance of 50 million unique addresses?

The 50 million unique addresses on the Fantom network represent a significant achievement in terms of adoption and network effects. It means that there are at least 50 million users who have created a wallet address on the network, either for holding FTM tokens or for interacting with dApps and smart contracts. This number is higher than many other blockchain networks, including Litecoin, Binance Smart Chain, and Solana.
However, it is important to note that unique addresses do not necessarily equal unique users, as some users could have multiple addresses and some addresses could be inactive or abandoned. Therefore, it is not an accurate measure of actual usage or engagement.

Why are daily active users and transaction volume decreasing?

According to Token Terminal data, the number of daily active users of FTM has decreased by 6.6% in the past 30 days, from 57,600 to 53,800. This trend is also evident in Dune Analytics data, which shows a decline in online transaction volume from a peak of 6.5 million FTM per day to 3.2 million FTM per day.
There could be several reasons behind these trends, such as market volatility, competition from other networks, and technical issues. The recent crypto market crash in May could have affected investor sentiment and trading activity on the network. The rise of other Layer 1 solutions, such as Solana and Polygon, could have also diverted attention and liquidity from Fantom. Additionally, the network suffered from several minor bugs and outages in the past few weeks, which could have reduced users’ confidence and trust.

What are the implications for Fantom’s future?

The decrease in daily active users and transaction volume is a concerning sign for Fantom, as it could hinder its growth and adoption in the long run. However, it is not necessarily a death sentence, as the network still has several strengths and opportunities to leverage.
One of the notable advantages of Fantom is its strong community, which has shown resilience and commitment in supporting the network through thick and thin. The community has created several useful dApps and initiatives, such as SpookySwap, SpiritSwap, and BooStarter, which could attract more users and investors in the future. Moreover, the network has several upcoming updates and releases, such as the Go-Opera mainnet upgrade, that could enhance its performance and functionality.
In conclusion, the Fantom network has achieved a significant milestone of 50 million unique addresses, but it is facing a challenge of decreasing daily active users and transaction volume. The reasons behind these trends are not clear, but they could be related to market volatility, competition, and technical issues. However, the network still has several strengths and opportunities to capitalize on, such as its innovative technology, strong community, and upcoming updates. Therefore, it will be interesting to see how Fantom will navigate this situation and continue to evolve in the competitive blockchain space.

FAQs

Q: What is the difference between unique addresses and unique users?
A: Unique addresses represent the number of created wallet addresses on the network, whereas unique users represent the actual number of individuals using the network. Therefore, unique addresses could be higher or lower than unique users, depending on several factors.
Q: What is Lachesis consensus?
A: Lachesis consensus is a DAG-based consensus mechanism that allows for high throughput and low latency in transactions. It achieves consensus through a gossip protocol that shares transaction information among nodes in the network.
Q: What is the role of bridges in Fantom network?
A: Bridges are interoperability components that allow for the transfer of assets and data between the Fantom network and other blockchain networks, such as Ethereum and Binance Smart Chain. They ensure compatibility and seamless integration between different platforms.