Fantom (FTM) Surges, NEAR Sets Highs as Major Cryptos Stagnate

A revived interest in layer 1 bets is fueling growth in some tokens even as bitcoin shows signs of weakening.

AccessTimeIconJan 4, 2022 at 2:44 p.m. UTC
Updated May 11, 2023 at 6:58 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Native tokens of the Fantom and Near blockchains surged as much as 20% in the past 24 hours amid a continuing trend of investors betting on the growth of layer 1 protocols. The NEAR token hit a new all-time high of $17.48 before a brief sell-off at the time of writing.

The moves defied stagnation in the price movements of major cryptocurrencies, such as bitcoin and ether, which fell 2% in the past 24 hours, data from CoinGecko showed.

Layer 1 networks refer to individual blockchain platforms such as Ethereum or Avalanche, atop of which decentralized finance (DeFi) applications or other software can be built. DeFi itself refers to protocols and services that rely on smart contracts instead of middlemen to provide financial services, such as trading, lending and borrowing, to users.

Why NEAR is surging

Most DeFi activity has centered around Ethereum-based applications since 2019. But slow speeds and an expensive network have led to users migrating to cheaper and faster networks.

Avalanche (AVAX), Solana (SOL) and Terra (LUNA) have emerged as top contenders in the past month – attracting billions of dollars in capital – but investors are now betting on the upside of even more networks, such as Near and Fantom, among others.

Early Asian trading hours on Tuesday saw NEAR break its previous highs of $16.20, reaching as high as $17.59 on some exchanges in European trading hours before dropping 50 cents. Over $1 billion worth of NEAR changed hands in the past 24 hours, with much of the trading activity occurring on crypto exchange Binance.

NEAR broke previous highs on Tuesday morning. (TradingView)
NEAR broke previous highs on Tuesday morning. (TradingView)

This is despite a relatively smaller amount of capital – just a little above $141 million – locked up on Near-based DeFi protocols. This puts Near at 29th among all DeFi-enabled blockchains, as per DeFi Llama.

NEAR prices started rising in late December 2021 on the back of an integration with Terra, the world’s second-largest DeFi blockchain by total valued locked (TVL), and its UST stablecoin. NEAR prices bumped 20% in the hours after that announcement, and the uptrend has since continued.

FTM climbs

Fantom was the other big gainer in mid-European trading hours on Tuesday. Prices surged 21% in Asian trading hours before tumbling to $2.97 at the time of writing. FTM has now risen over 133% in the past two weeks. DeFi protocols built on the network hold over $5.91 billion in value, according to DeFi Llama. $2 billion of that came in the past two weeks alone.

Technical charts show FTM remains in an uptrend but faces resistance at the $3 mark, a level the tokens saw selloffs from in November 2021.

Fantom prices remain 15% lower than their previous highs of $3.46 in November 2021, as per CoinGecko.

FTMUSD_2022-01-04_19-21-43.png

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.

Shaurya Malwa

Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.