Should I buy Fantom (FTM) in 2021?


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INTRODUCTION

Fantom is an open-source, permissionless, and decentralized project which is being constructed so as to rectify the problems inherent with earlier generations of blockchain networks (transaction speed and cost). The construction and mechanics of the Fantom network are unique, focusing on being a smart contract platform offering scalability, security and decentralization. In providing this solution to the 'blockchain trilemma', Fantom is attracting the attention of many developers and investors alike.

In this subsection of the Fantom (FTM) Coin Guide let's investigate whether Fantom (FTM) should be on your radar as a potential addition to your investment portfolio.

FACTORS IN FAVOR OF INVESTING IN FANTOM (FTM)

  • Fantom's success in solving the 'blockchain trilemma' should attract many developers to the project adding great value thereto.
  • Fantom appears to solve many of the problems exhibited by Ethereum (it provides a scalable, decentralized platform with no compromise on security), making Fantom a viable and attractive Ethereum alternative.
  • Fantom should be able to establish and position itself within the market as it offers advanced smart contract capabilities together with almost infinite scalability, near instantaneous transactions and low cost.
  • Many projects have already been built upon Fantom and the liklihood is present that many future projects will be added as present developers highly praise the protocol, all boding well for Fantom's value.
  • As Fantom offers advanced smart contract capabilities, it has the potential to make significant contributions in the fast growing area of Decentralized Finance, all adding to it's perceived value.
  • Fantom's reputation in the DeFi sector is growing which translates into increased growth in this area.
  • Although the Fantom token has exhibited price volatility, it has delivered for its investors and has recently demonstrated high growth. At present Fantom is attractively priced.
  • The Fantom platform is growing quickly and accordingly, for the reasons set forth above, your investment should grow with it.
  • The underlying platform in the Fantom ecosystem is highly secure so your investment is relatively safe given the current state of the cryptosphere.
  • While holding your investment in this secure environment you can take advantage of the ability to earn passive income through the staking of the Fantom token.

FACTORS AGAINST INVESTING IN FANTOM

  • Just as with any other cryptocurrency, the Fantom token may be a highly volatile investment.
  • Fantom is a relative newcomer to the cryptosphere (trading commenced in 2018) and as such may be somewhat of a riskier investment.
  • Fantom is faced with stiff competition from Ethereum and other Ethereum based platforms.

TOKENOMICS

Per CoinMarketCap, at the time of the writing of this subsection (October 16, 2021 at 13:00 EDT) there is a circulating supply of 2.55B FTM. With the current price of $1.97 the market capitalization of Fantom (FTM) is $5,010,460,332. There is a total supply of 3,175,000,000 Fantom (FTM) tokens authorized yielding a fully diluted market capitalization of $6,245,490,072. Presently, Fantom (FTM) is ranked No. 37 by CoinMarketCap.

FANTOM (FTM) RELEVANT PRICE HISTORY

From launch in 2018 through 2020, for the majority of the time, Fantom (FTM) demonstrated a flat price graph at and around $0.05. The token began picking up momentum in January 2021 finally doubling to $0.10. Mid February 2021, FTM crossed the $0.20 level.

From mid February, 2021, FTM began a big rise running from $0.1732 to $0.6502 in less than a two week period. The token began a drop with some minor variations reaching bottom in late April, 2021 at a price of $0.228. Despite this drop, however, the token rose to cross $0.90 in early May, 2021 only to retreat once again to $0.177 on July 20, 2021. Nonetheless, FTM recovered again recording a 990.4% gain between July 20 and September 9, 2021 to close at $1.93 per token.

At present the price of FTM is fluctuating but clearly seems to be holding well above the $1.00 level. This price history, however, readily shows the volatility present associated with this token.

A review of the Fantom (FTM) price chart for the entire history of the project demonstrates a nice upward trend (with obvious corrections), especially when taking into account external market forces and periods of unrelated project market volatility:

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FANTOM (FTM) REASONABLE PRICE PREDICTIONS

Walletinvestor.com has presented a detailed graph showing the price trend of FTM through 2022 (below) and predicts a price of $7.020 by October, 2025.

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Digitalcoin has presented its price prediction for FTM for the entire year 2024 in bar graph form as follows:

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And finally, from Coinpedia, a price prediction chart showing the predicted high/low price ranges for FTM for the years 2021, 2022 and 2025.

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Please keep in mind that while these price predictions paint a rosy future for Fantom (FTM) as an investment, they are just that - predictions. No one has a crystal ball that can guarantee future performance. As such, as a potential investor, you may take the prediction for what it is, as the same is no guarantee of future price performance of Fantom (FTM) due to the volatility of the cryptocurrency markets.

CONCLUSION

This subsection has provided you, the potential investor in Fantom (FTM), with the key elements to consider in reaching a final decision on this token. In reaching a final investment decision many differing opinions should be sought out. Reliance on one source is highly discouraged.

It is a given that every individual investor possesses a different present financial circumstance, tolerance for risk, and investment strategy. These must be weighed in light of the factors and information above provided in finalizing any investment decision.

Please remember, this subsection of the Fantom (FTM) Coin Guide is merely a starting point and should not be deemed a substitute for doing your own diligent research.

With that being said, your author views an investment in Fantom (FTM) as having potential. As shown above, this project has a lot going in its favor. However, as a caveat, any potential investor's risk tolerance should be high as Fantom (FTM) has exhibited high price volatility. A careful risk/reward assessment is in order prior to any investment. And as always, never invest more than you can afford to lose.

RECAP: Cautious BUY for high risk tolerant investors

DISCLAIMER:

  1. Your author holds a long position in Fantom (FTM).
  2. The content herein is presented for educational purposes only and should not be construed as investment advice. Any loss incurred as a result of investing in Fantom (FTM) is yours and yours alone and may not be imputed to this author. Any foregone gain by not investing in Fantom (FTM) is yours and yours alone and may not be imputed to this author.
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