{"id":555668,"date":"2023-02-23T21:10:27","date_gmt":"2023-02-23T18:10:27","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/how-fantom-and-optimisms-defi-and-dapp-development-directly-affects-ftm-and-op-price-action\/"},"modified":"2023-02-23T21:10:27","modified_gmt":"2023-02-23T18:10:27","slug":"how-fantom-and-optimisms-defi-and-dapp-development-directly-affects-ftm-and-op-price-action","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/how-fantom-and-optimisms-defi-and-dapp-development-directly-affects-ftm-and-op-price-action\/","title":{"rendered":"# How Fantom and Optimism\u2019s DeFi and DApp development directly affects FTM and OP price action"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3688e21d0df\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3688e21d0df\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/how-fantom-and-optimisms-defi-and-dapp-development-directly-affects-ftm-and-op-price-action\/#%E2%80%9D_How_Fantom_and_Optimisms_DeFi_and_DApp_development_directly_affects_FTM_and_OP_price_action_%E2%80%9C\" >&#8221; How Fantom and Optimism\u2019s DeFi and DApp development directly affects FTM and OP price action &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/how-fantom-and-optimisms-defi-and-dapp-development-directly-affects-ftm-and-op-price-action\/#Fantoms_ecosystem_development_stalls\" >Fantom\u2019s ecosystem development stalls<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/how-fantom-and-optimisms-defi-and-dapp-development-directly-affects-ftm-and-op-price-action\/#Optimism_developers_find_success_with_new_use_cases\" >Optimism developers find success with new use cases<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/how-fantom-and-optimisms-defi-and-dapp-development-directly-affects-ftm-and-op-price-action\/#Comparing_the_tokenomics_of_FTM_and_OP\" >Comparing the tokenomics of FTM and OP<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_How_Fantom_and_Optimisms_DeFi_and_DApp_development_directly_affects_FTM_and_OP_price_action_%E2%80%9C\"><\/span>&#8221; How Fantom and Optimism\u2019s DeFi and DApp development directly affects FTM and OP price action &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-48054ca8>The price action of Optimism (OP) and Fantom (FTM) tokens have been quite identical since the last quarter of 2022. The difference is, volatility is slightly higher for OP, which surged 240% year-to-date, compared to the 180% gains seen in FTM.<\/p>\n<p>The Fantom Foundation has made several improvements since Q4 2022, which have catalyzed an uptrend in the token\u2019s price. However, Fantom\u2019s ecosystem remains primitive while its competitors expanded to support new use cases.<\/p>\n<p>On the other hand, Optimism has shown robust community and decentralized <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lication (dApp) development thanks to the loyalty of Ethereum developers and the Optimism Foundation\u2019s effective strategy in aligning token incentives with governance.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/819a603a-0c3e-425a-8286-dcec2fa8793c.png\"><figcaption style=\"text-align: center;\"><em>OP\/USD (orange) and FTM\/USD (blue) price chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Fantoms_ecosystem_development_stalls\"><\/span>Fantom\u2019s ecosystem development stalls<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Fantom ecosystem received an adverse blow in early 2022 due to the departure of leading DeFi architect Andre Cronje. The blockchain\u2019s ecosystem development stalled after Cronje\u2019s departure. At the same time, Fantom\u2019s competitors, like Polygon (ATOM), Arbitrum and Optimism continued to host various popular applications.<\/p>\n<p>Cronje rejoined Fantom development efforts in November 2022, however, it appears it was too late by then. The lack of sustainable yields in a bear market has restricted liquidity inflows to Fantom.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/d82903d4-f472-47fa-89ff-ba847fa441a7.png\"><figcaption style=\"text-align: center;\"><em>Fantom TVL over time. Source: DefiLlama<\/em><\/figcaption><\/figure>\n<p>The Fantom community also aimed to improve the quality of decentralized applications on the blockchain through an ecosystem development fund built by reducing the portion of burnt fees from 20% to 5% in December. While the number of smart contracts created on Fantom has spiked significantly since Q3 2022, the quality of dApps still needs to improve compared to its competitors.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/a917c315-590b-4418-bac3-043b3fd16295.png\"><figcaption style=\"text-align: center;\"><em>Number of smart contracts created on Fantom. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/dune.com\/Henrystats\/fantom-ecosystem-overview\"><em>Dune<\/em><\/a><\/figcaption><\/figure>\n<p>The 30-day activity billboard from Nansen shows that top dApp activity on Fantom was limited to simple swaps, which is discouraging as other activities like derivatives trading, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social media<\/a> platforms and NFT trading are prospering on competing chains like Arbitrum, Polygon, and Optimism. <\/p>\n<p>The most used dApps on Fantom between Jan. 20, 2023, and Feb. 20, 2023, is XEN Crypto, a free mint Ponzi scheme-like application. The application first appeared on Ethereum in October 2022 with a lot of excitement in the first few days of launch. However, the hype subsided after the mint became unprofitable as many users crowded the platform.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/5d9ed727-ccef-4453-864a-aadb2175fd7d.png\"><figcaption style=\"text-align: center;\"><em>Top Fantom dApps by usage in the last 30 days. Source: Nansen<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Optimism_developers_find_success_with_new_use_cases\"><\/span>Optimism developers find success with new use cases <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>At the same time, Optimism has successfully attracted liquidity and activity to its ecosystem after launching the Optimism token and accompanying airdrop campaigns. In <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/optimism.mirror.xyz\/gQWKlrDqHzdKPsB1iUnI-cVN3v0NvsWnazK7ajlt1fI\">April 2022<\/a>, the Optimism team stated there would be a \u201cseason of airdrops,\u201d and launched an Optimism Quest campaign.<\/p>\n<p>The layer-2 network saw increased usage from users for collecting its non-fungible tokens (NFTs), which would likely make them eligible for the airdrop. The Quests ended in January 2023, following which there was a steep decline in activity. However, the DeFi liquidity remained sticky.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/acd75ee1-f669-46c8-a3cf-475648a8f71e.png\"><figcaption style=\"text-align: center;\"><em>The total liquidity on Optimism. Source: DefiLlama<\/em><\/figcaption><\/figure>\n<p>Moreover, the list of most used decentralized applications on Optimism includes yield platform Pool Together, derivatives platforms Synthetix and Perpetual Protocol and leading lending platform Aave.<\/p>\n<p>Optimism also hosts a decentralized blogging platform, Mirror, which allows content writers to issue their articles as NFTs. The platform has gained significant usage, with <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.similarweb.com\/website\/mirror.xyz\/#overview\">2.7 million<\/a> hits on its website.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/c38801b8-3344-4b48-948d-dff1d6b16a67.png\"><figcaption style=\"text-align: center;\"><em>Top Optimism dApps by usage in the last 30 days. Source: Nansen<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Comparing_the_tokenomics_of_FTM_and_OP\"><\/span>Comparing the tokenomics of FTM and OP<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>One drawback of the Optimism token is that it is only a governance token and doesn\u2019t entitle users to real yields in gas fees. The OP tokens\u2019 supply will inflate at 2% per year, along with investor and team unlocks, starting April 2023.<\/p>\n<p>However, the Optimism team has incentivized participation in governance, which improves the protocol\u2019s governance and also aligns incentives with its intended use, i.e., higher voter participation.<\/p>\n<p>Optimism\u2019s governance has proved more efficient than competitors like Uniswap (UNI) and Compound (COMP) in promoting decentralization. The layer-2 network\u2019s ecosystem is also expanding by supporting diverse applications. Optimism also stands to benefit from Arbitrum\u2019s native token launch, which can likely add fuel to the layer-2 token narrative, pushing the OP token\u2019s price higher. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Vitalik shows support for Optimism\u2019s governance structure and OP gas proposal<\/em><\/strong><\/p>\n<p>For Fantom, despite implementing a burn feature in its protocol, the real yield of the platform is still negative, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.stakingrewards.com\/earn\/fantom\/\">around -0.93%<\/a>. The blockchain\u2019s fees and liquidity must improve considerably to enhance the value of FTM. Otherwise, it risks becoming irrelevant alongside many other layer-1 protocols in the market.<\/p>\n<p>Technically, FTM can see more upside while it holds support above $0.38 and target the $0.95 support and resistance area. A breakdown below $0.38 could see it dropping toward $0.19.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/6c0269a6-16fd-4aba-bf5b-88851f1fefe6.png\"><figcaption style=\"text-align: center;\"><em>FTM\/USD weekly chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>For OP, its price surged above its previous peak of $2.30, which will now act as a support for further upside as it experiences a price discovery. On the flipside, a breakdown below this level could see the token\u2019s price drop toward $1.30.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<p class=\"post-content__disclaimer\">The views, thoughts and opinions expressed here are the authors\u2019 alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.\n<\/p>\n<p class=\"post-content__disclaimer\">This article does not contain investment advice or recommendations. 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The difference is, volatility is slightly higher for OP, which surged 240% year-to-date, compared to the 180% gains&#8230;<\/p>\n","protected":false},"author":1,"featured_media":555669,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/55f0ebc9-e5df-4ac5-ab56-3ecfc286e763.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,88119,74863,78168,74868,129196,74939,73785,71407],"class_list":["post-555668","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-altcoin-watch","tag-cryptocurrencies","tag-dapps","tag-defi","tag-fantom","tag-market-analysis","tag-markets","tag-trading"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/555668","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=555668"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/555668\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/555669"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=555668"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=555668"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=555668"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}