- The activity on Fantom lasted 30 days, even though the co-founder released an exciting update.
- If deployed, press time data showed that the memecoins may not match Solana’s.
Phantom [FTM]announced through co-founder Andre Cronje that it would open its network to anyone who wants to deploy a memecoin.
Cronje said this in one blog post, published on April 9. According to him, the goal is to create a “safer environment” for communities and investors.
Time to save the chain?
However, Cronje, who recently defended Solana [SOL] after the project received some criticism, certain conditions were imposed. He noted that 10% of all approved tokens would be locked and 5% would go towards the team’s costs. In other terms he said that,
“The remaining 85% of the tokens will be placed in an FTM/token LP in foundation multisig. An amount of FTM 100,000 will be provided.”
Fantom’s decision to open its doors comes amid a booming memecoin season. While some blockchains have had their day, Solana seems to have remained at the top of dominance.
But there was a difference between what happened on Fantom and what Solana memecoins brought. Before the rise of projects like Bonk [BONK]and dog hat [WIF]the activity on Solana was impressive.
However, AMBCrypto’s analysis showed that it was not the same as DeFi’s scalable blockchain. At the time of writing, Santiment data showed that 24-hour active addresses on Fantom were at their lowest in the past 30 days.
Source: Santiment
Fewer active addresses indicate less demand for FTM. If this continues, it may be difficult for the community to show interest in the memecoins.
Challenges lie ahead
Just like the active addresses, the network in the chain is also growing dropped. The graph, as shown above, implies that Fantom has struggled to attract new participants.
However, it is not out of place to assume that the situation could change. For example, if one memecoin is launched and the community finds it worthwhile, liquidity can improve, as can FTM demand.
In addition to the metrics mentioned above, the Total Value Locked (TVL) can also reveal whether the proposal could do well if implemented.
According to DeFiLlama, the TVL of the project amounted to $140.53 million. One thing we noticed was that TVL was up, but still far from the $5 billion value it reached at the height of the 2021 bull market.
Source: DeFiLlama
While the increase shows that health is improving, it also reflects participants’ reluctance to commit a lot of capital in anticipation of a good return.
Realistic or not, here is FTM’s market cap in SOL terms
Nevertheless, the state of these metrics does not mean that the memecoin, if (when) deployed, would underperform.
However, it is likely that they will not match the way the plethora of tokens deployed under Solana did. At the same time, it may be too early to predict.