Best Cryptocurrency Exchange Fees

This Crypto Might Be the Solana of 2022

This Crypto Might Be the Solana of 2022
Written by publisher team

ghost (CRYPTO: FTM) Under the radar now, but maybe not for long. Cryptocurrency has seen an amazing rise in the past year. The coin sold for $0.02 a year ago. Now it is trading at $3 a coin.

Fantom jumps because it is a Layer 1 protocol with ultra-fast speeds, such as Solana (CRYPTO: SOL). In 2021, the value of these two lots increased by 14,000% and 11,000%, respectively. Phantom is much smaller with a market capitalization of $7 billion compared to Solana’s $43 billion. I think part of this discrepancy is because Solana can be bought and sold, unlike Fantom Queen Piece (NASDAQ: currency)The largest crypto exchange. (You can buy the currency from another exchange, Gemini).

I expect the smaller coin to outpace Solana again in 2022. This is why you should want to own a Fantom coin.

Image source: Getty Images

1. It might be the fastest blockchain out there

In the past year, the cryptocurrency market has gone crazy Ethereum (CRYPTO: ETH) competitors. Ethereum is the main platform for the crypto world. But interest in cryptocurrencies is on the rise, and the Ethereum network is faltering under pressure. The “gas fee” (the cost of validating a transaction on the Ethereum blockchain) was $300 at one time. By comparison, a transaction on Fantom or Solana costs a fraction of a penny.

Why are the fees so cheap? Speed. Solana averages 50,000 transactions per second, compared to 14 transactions per second on Ethereum. Fantom is not as fast as Solana, but still ahead of Ethereum; In a test conducted in 2018, the blockchain processed 25,000 transactions per second. But Fantom has a very strong claim that it is the fastest blockchain if you look at the time to the end. This is arguably the most important statistic, since it is the moment when the entire transaction is validated on the chain. Fantom’s time to finish is around a second, versus 13 seconds on Solana and over a minute on Ethereum.

Fantom also swings the total number of transactions on the blockchain. A year ago, Phantom averaged 4,000 transactions per day. Now the network averages 750,000 per day. This is an amazing growth rate. Fantom is already ranked 5th in the number of transactions, it has surpassed more coins like Avalanche (CRYPTO: AVAX).

Graph of transactions on various blockchains (November 2021)

Image source: CoinMarketCap.

2. It is compatible with Solana And Ethereum

Compatibility is one of the challenges in the blockchain world. It can be difficult to move a virtual wallet from one blockchain to another. So in a blockchain world – like Silicon Valley – a lot of blockchain networks are friends of friends. They are all competing and want to win. But they also have to play nice and work together.

Fantom, like most Ethereum competitors, is compatible with the Ethereum Virtual Machine (EVM). This makes it easier for experienced Ethereum engineers to develop decentralized applications (dApps) for the Fantom blockchain. And it makes it easier for dApps on the Ethereum blockchain to migrate to the Fantom blockchain to save money.

Solana is something of a splinter in that it is not compatible with Ethereum. This puts the blockchain outside the realm of Ethereum. Surprisingly, however, is that Fantom is also present in the Solana ecosystem. This flexibility is strength. No matter who comes out on top, Ethereum or Solana, Fantom should be fine as it is compatible with both platforms.

3. The main players support the currency

If you’ve ever made any investment in crypto, you’ve probably heard of Sam Bankman-Fried. He is number 58 on the Forbes 400 list with a net worth of $26 billion, making him the richest crypto tycoon on the list.

Bankman-Fried made a lot of money by starting a cryptocurrency exchange FTX (CRYPTO: FTT). But he is also a prominent (and early) investor in Solana. Bankman-Fried once got a Twitter Fighting over the price of the currency. He and Twitter user CoinMamba discussed the value of Solana’s coin at $2, $2.05 and $2.38. Finally, on January 9, Bankman-Fried tweeted, “I will buy as much SOL as you have, now, for $3. Sell whatever you want.” The tweet became famous as the coin jumped to $149 by the end of the year.

Bankman-Fried is also a major supporter of Fantom. His company, Alameda Research, bought $35 million in Fantom coin in February. This happened around the same time that Fantom began integrating its blockchain with the Solana Network.

While Bankman-Fried may be Fantom’s richest supporter, the most important is probably Andre Cronje. It’s founder yirn financial (CRYPTO: YFI) He is one of the architects of the decentralized finance (DeFi) revolution. Cronje is a technology advisor to Fantom and helped develop its blockchain. It has already created a non-fungible token market (NFT) in Fantom and is a direct competitor to OpenSea, the largest NFT marketplace. Cronje is also working on a secret project that will be released on the Fantom blockchain later this year.

Supported by key industry players, impressive speed and blazing growth rates, and low valuation against other major currencies, Fantom Crypto is likely to rise even more in 2022. While it likely won’t repeat the 14,000% growth of last year, it is still The potential for elevation here is very high. I own this coin and buy more.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of the Motley Fool Premium Consulting Service. We are diverse! Asking about an investment thesis — even if it’s our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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