I believe Fantom is the best buy in cryptocurrency right now. It is kind of like Solana, in that it has a really fast blockchain technology, and it could scale in a way that Ethereum cannot right now. But there are also some more specific reasons that help make Fantom one of the strongest buys in the cryptocurrency space today. So here are 2 reasons I am buying the coin this year, and why I believe you should consider the coin as well.
1. You want to own a piece of the platform that the cryptocurrency universe will sit on
ETH is the big whale of DeFi. If you want to stake your cryptocurrency and earn high yields, historically ETH is a level 1 blockchain that has provided the best platform for all this to occur. The total value locked on the ETH blockchain is about $116 billion.
Over the years, some people have created dApps on the ETH platform, and so the network’s value has only gotten larger and larger. That is why ETH’s coin has a market capitalization of $295 billion: The network validates the importance of the blockchain.
Bitcoin has never served that function; it is too slow. Now, as interest in cryptocurrency has exploded, we are discovering that ETH is too slow, as well. It doesn’t have the capacity for big numbers of transactions — it does not scale. Its blockchain can manage about 15 transactions each second. While that seems like a lot, it isn’t. As you have an increasing amount of people trying to get their transactions on the ETH blockchain, it creates a traffic jam in the process. And so the fees to execute the transactions on the ETH network have increased and keep increasing.
At one point this past year, ETH fees spiked above $300 each transaction. Compare that ridiculous price with the Solana and Fantom networks, where a transaction can cost much less than a penny. That is because those chains have a large capacity for speed. Fantom’s network is able to handle about 25,000 transactions each second, and Solana is double that speed. And Fantom is also able to validate a transaction in just a second (about 12 times quicker than Solana, and 60 times quicker than Ethereum).
Last year, the cryptocurrency value of Solana and Fantom increased 11,000% and 14,000%, respectively. In my opinion, the cryptocurrency market is buying up these coins due to a belief that one of these networks will one day replace Ethereum as the key level 0 blockchain in the cryptocurrency universe. We do not know (yet) which coin that will be, and ETH is addressing its slow speeds in a long-awaited upgrade of its network, but there are several reasons to believe Fantom has an advantage.
2. Fantom is compatible with Solana and Ethereum
My main reason for remaining bullish on Fantom is that it is a superfast network. I believe one of these two networks will one day replace Ethereum as the main platform for the cryptocurrency universe. What gives Fantom the edge over Solana is that it is compatible with the old-guard network, ETH. (Solana isn’t). So, it is quite simple for ETH dApps to shift to this quicker (and cheaper) ecosystem.
It might be a great idea to purchase a mix of all three of these cryptocurrencies: Solana, Ethereum, and Fantom. Or you can just buy the fastest coin where transactions cost a lot less than a penny (Fantom and Solana). But if you are going to purchase one crypto this year, I would recommend buying the fastest coin that helps make it easy for the ETH network to migrate which is Fantom.