Het Ethereum (ETH) network continues to enjoy the status of being the top smart contract platform in the blockchain industry, but the competition is slowly gaining market share because high costs and network congestion are still challenges for the protocol.

One project that has been gaining traction in the month of August is Fantom (FTM), a layer-one smart contract platform that utilizes a directed acyclic graph architecture as a means to solving the problems of slow transaction speeds and high transaction fees.

Gegevens van Cointelegraph Markets Pro en TradingView laten zien dat sinds het bereiken van een dieptepunt van $0.15 in juli 20, the price of FTM has rocketed 500% tot een intraday high op $0.90 op aug. 30 as its 24-hour trading volume exploded by 1,250% to a record $1.26 miljard.

FTM / USDT 4-uurs grafiek. Bron: TradingView

Three reasons for the surging momentum in Fantom include the launch of a 370 million FTM incentive program, a significant increase in social media engagement and the continued increase in the amount of value locked on the protocol.

Fantom launches a liquidity incentive program

The biggest momentum boost for Fantom came on Aug. 30 with the announcement of a 370 million FTM incentive program ($320 miljoen), designed to attract new protocols and liquidity to the Fantom ecosystem.

Under the program, developers who launch on the Fantom network will be able to apply for rewards from the Fantom Foundation and will receive between 1 miljoen tot 5 million FTM depending on the total value locked (TVL) in the protocol in question.

In order to qualify for rewards, a protocol must maintain a TVL above a time-weighted average (TWA) van $5,000,000 of $100,000,000 voor een langere periode. If at any point the TWA falls below the $5,000,000 minimum, threward distribution will be paused until the TVL once again reaches the required minimum.

Social media engagements surge in August

The building momentum for Fantom was registered by social media metrics from Lunar Crush throughout the month of August. The platform showed a 34% increase in social media mentions when compared to the month of July and social media engagements also shot up by nearly 96%.

On-chain data for the network also shows a steadily increasing rate of engagement because the network now has 415,000 unique addresses that conduct more than 300,000 transacties per dag.

These numbers could significantly increase in the weeks and months ahead thanks to the release of the FTM incentive program, which has already lead to a new record high in the number of transactions on the Fantom bridge.

Fantom bridge transaction count. Bron: Twitter

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Significant gains in DeFi

The third reason for Fantom’s explosive growth is the increasing TVL of its DeFi ecosystem which is led by SpookySwap exchange ($192 million TVL).

Volgens gegevens van DeFi Llama, the total value locked on the Fantom blockchain has now surpassed $657 million with a 19.52% increase coming over the last 24-hours.

Total value locked on Fantom. Bron: DeFi Llama

Zoals te zien in de bovenstaande grafiek, the launch of the Fantom Incentive Program helped spark a significant rally in the TVL on Fantom, but the network was already seeing impressive gains in the metric even before the launch of the program.

Between Aug. 4 en augustus. 23, Fantom’s TVL increased from $269 miljoen tot een hoogtepunt van $510 million without any special incentives. This proves that interest in interacting with the platform has been on the rise for multiple weeks.

VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for FTM on Aug. 29, voorafgaand aan de recente prijsstijging.

De VORTECS™ Score, exclusief voor CoinTelegraph, is een algoritmische vergelijking van historische en huidige marktomstandigheden afgeleid van een combinatie van gegevenspunten, waaronder het marktsentiment, handelsvolume, recente prijsbewegingen en Twitter-activiteit.

VORTECS™ Score (groen) vs. FTM-prijs. Bron: CoinTelegraph Markets Pro

Zoals te zien in de bovenstaande grafiek, de VORTECS™ Score climbed into the green zone on Aug. 28 en bereikte een hoogtepunt van 70 op aug. 29, around four hours before the price increased 80% de volgende dag.

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