One of the projects that have been gaining some major traction this month is Fantom- a layer one platform for smart contracts. For the uninformed, this directly utilizes a directed acyclic graph architecture which further assists in problem-solving for slow transaction speeds and increasing transaction fees.
This has come to news due to the network of Ethereum continuing to reign as the top smart contract platform in the blockchain industry. Nevertheless, the competition has been gaining ground slowly due to the network congestion as well as the high costs- which are major challenges for the protocol.
According to data that was received from TradingView and Cointelegraph Markets Pro, the price of Fantom reached a new low of $0.15 on the 20th of July, where the FTM price increased by 500% to an intraday high of around $0.90 on Monday. This led to the explosion of the trading volume over 24 hours by around 1,250% to a record market cap of $1.26 billion.
There have been quite a few reasons for the increasing momentum in Fantom which also includes the launch of an incentive program worth 370 million FTM- which can be seen as quite an interesting growth in social media engagement as well as a continued increase in the value which was locked on the protocol.
Fantom Launches A Liquidity Incentive Program
The biggest increase for Fantom came on Monday after the announcement of a 370 million FTM incentive program which has been specifically designed to attract new protocols as well as introducing major liquidity in the ecosystem of this protocol. Under this program, major developers who had launched on the network of this blockchain were further able to avail the rewards promised by the Foundation. They will also receive between 1 million to 5 million FTM which is strictly dependent on the TVL in the protocol in question.
This implies that a protocol will have to maintain a TVL above a TWA of $5 million or $100 million for quite a period of time, in order to qualify for the awards kept by the Fantom Foundation.