Fantom Reaches New Milestone with 50 Million Unique Addresses: Is the Decrease in Daily Active Users Cause for Concern?

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

On April 8th, 2021, the cryptocurrency world witnessed a significant milestone as Fantom announced that it had surpassed 50 million unique addresses on its network. This is an impressive achievement for the relatively young blockchain company, which was founded only a few years ago. However, despite this remarkable feat, Token Terminal’s recent data shows that the number of daily active users of FTM has decreased in the past 30 days. Moreover, Dune data reveals that the online transaction volume on the Fantom network has also decreased. With this information in mind, this article will explore the possible factors contributing to these trends and analyse whether they are cause for concern.

The Rise of Fantom

In just a few short years, Fantom has made a name for itself in the growing world of blockchain technology. As an open-source, decentralized smart contract platform, Fantom boasts high speed and low cost transactions that are scalable and secure. The company aims to be an all-in-one platform for developers, offering a range of features such as staking, smart contracts, and more. Its unique consensus algorithm, Lachesis, allows for a high throughput of transactions per second, making it an attractive option for businesses and individuals alike.

The Milestone

Reaching over 50 million unique addresses is an incredible achievement for Fantom. This milestone demonstrates the growing adoption and interest in the platform, as more individuals and companies are becoming aware of its benefits. However, it is essential to look beyond this milestone and understand the bigger picture to properly evaluate the state of the platform.

The Decrease in Daily Active Users and Transaction Volume

Despite the significant milestone, Token Terminal data shows that the number of daily active users on the Fantom network has decreased over the past 30 days. Additionally, Dune data shows that the online transaction volume has also decreased. This trend may be worrying for investors and those involved in the project.

Possible Factors Contributing to the Trends

Several factors may be contributing to the decrease in daily active users and transaction volume on the Fantom network. Firstly, the recent surge in the cryptocurrency market may have diverted attention away from Fantom as individuals and companies look to other currencies. This trend is not unique to Fantom, as many other cryptocurrencies have also witnessed a decline in daily active users and transaction volume.
Furthermore, the recent drop in the price of FTM may have led to a loss of interest in the platform. This is a common issue that many cryptocurrency companies face, as the value of a coin is often closely linked with its adoption and usage.
Lastly, the high gas fees on the Ethereum network may have contributed to the decrease in transactions on the Fantom network. Ethereum gas fees have risen significantly over the past few months, making it more expensive to conduct transactions on the network. In contrast, the Fantom network offers lower transaction fees, making it an attractive option for those looking for a more cost-effective alternative.

Conclusion

Despite the decrease in daily active users and transaction volume, Fantom’s milestone of reaching over 50 million unique addresses is a significant achievement. The decline may be due to a variety of factors, including market trends, price volatility, and the gas fee issue. While these trends may be cause for concern, it is essential to consider the bigger picture and the potential for future growth.

FAQs

1. What is Fantom’s unique consensus algorithm, Lachesis?
2. Why has the cryptocurrency market seen a decline in daily active users and transaction volume?
3. How does the comparison between Ethereum and Fantom network fees affect transaction volume?