Fantom (FTM) is a directed acyclic graph (DAG)-based smart contract platform for digital assets and decentralized applications (Dapps). The network’s asynchronous Byzantine fault tolerant (aBFT) consensus protocol provides speed, security and reliability. Transactions on Fantom cost a fraction of a cent and are finalized in a couple of seconds, while the network can scale to process thousands of transactions per second. Fantom’s decentralized finance (DeFi) suite lets users mint, trade, lend, and borrow digital assets, while developers can deploy Dapps on the network just like on Ethereum.

The network’s primary token, FTM, is used for on-chain governance, paying network fees, and securing the network via a proof-of-stake system. Since its creation, the price of FTM has seen significant change and if you want to know why then you’re in the right place. We’ve compiled everything you need to get a better understanding of FTM price – as well as the factors which influence it.

Fantom Price History

Fantom (FTM) began trading at around $0.02 in October 2018 and fell throughout November until reaching a low of $0.004 in December. Some gains then took FTM price up to $0.008 before it finished the year with a value of $0.006.

2019 began bearishly as FTM declined to a low of $0.003 in February, before a couple of months of positive momentum sent prices up to $0.017 in April. A pullback then took FTM down to less than half that value in May, followed by a fresh surge that saw FTM peak above $0.03 a month later. The overall trajectory for the rest of the year was downward, with FTM setting a series of lower lows until it ended 2019 trading at a price of $0.011.

As 2020 began, the negative trend prevailed and FTM had fallen below $0.01 by the end of January. A slight improvement in the first half of February took prices up to $0.013. This didn’t last for long, though, and FTM bottomed out at $0.0017 a month later, following a crash of 54% on a single day in March. FTM regained half a cent over the next couple of months, before a series of more pronounced surges saw the cryptocurrency reach a high of $0.06 at the start of September. Prices pulled back sharply to $0.02 just a couple of days later and declined further to $0.012 in the first week of November. For the rest of the year, FTM mostly traded in the $0.015 to $0.025 range.

Fantom’s first major rally got started almost immediately in 2021. Over the course of January, FTM made gains of 665% to close the month at $0.13. Further surges in February took prices to a peak of $0.91 before they retraced to $0.42 at the end of the month. FTM fell as low as $0.29 in March, while another dip meant that $0.24 was the lowest price recorded in April. The end of April and start of May were then occupied by a steep rally which took FTM up to its all-time high of $0.98 on 10 May. The market cap of Fantom had surpassed $2 billion by that point. The next several days saw prices retreat, culminating in a single-day crash of 42%, during which FTM touched lows of $0.26.

Analyzing Fantom Price History

Fantom price history can be analyzed with many of the same techniques as stock market analysis. Technical analysis (TA) involves using various indicators while studying price charts in order to make sense of previous price movements. With FTM, as with many other tradable assets, large price swings are often accompanied by spikes in trading volume, as a large number of users buy or sell their coins on exchanges.

Fundamental analysis (FA), on the other hand, looks at the finances and activities of a company, as well as the state of the wider market and economy. Fantom raised almost $40 million in its initial coin offering (ICO) and has partnered and integrated with industry-leading organizations, including Chainlink, The Graph, Ren, OKEx, Travala, and the Afghan Ministry of Health. This could be a good sign of the project’s fundamentals.

Broader market trends have also played a role in Fantom price history. Its surge at the start of 2021 wasn’t unique – the entire crypto market pumped around this time. Bitcoin was in the midst of a major bull run then, and with such strong market dominance, any significant price movement for Bitcoin often impacts other cryptocurrencies.

FTM’s sudden crash in May 2021 was also market-wide, affecting every single major cryptocurrency. Various contributing factors have been suggested, including comments from Elon Musk, a crackdown by Chinese authorities, liquidations, and a healthy market correction.

FTM’s huge single-day drop back in March 2020 came as economies and borders were closing down around the world in response to the COVID-19 pandemic. The effect of this was felt by the whole crypto sector and the entire stock market, which experienced the biggest single-day crash since 1987.

The overall price trend of Fantom (FTM) tends to follow what’s known as a boom-and-bust cycle. This is a pattern in which a period of growing excitement leads to a surge in price before doubt and disillusionment set in and result in a crash.

Factors Influencing The Price of Fantom (FTM)

A variety of different things can affect Fantom price, including project news and developments, the flow of assets on exchanges, public sentiment, and emerging trends in the wider crypto and global economies.

FTM has a capped max supply of 3.175 billion, all of which are expected to be in the circulating supply by the end of 2023. This makes FTM a scarce asset, like Bitcoin, and therefore potentially a good store of value. After the max supply has been reached, no more FTM will ever be created, and any increase in demand for the token will therefore boost its price.

Demand for the token is driven by its various use cases. The Fantom network’s high throughput, fast finality, and low fees make FTM ideal for sending and receiving payments. Meanwhile, the governance rights provided by the token could encourage network users to hold FTM in order to propose and vote on improvements.

FTM is also required to pay network fees for transactions, deploying smart contracts, and creating new networks. The final utility of the token is its role in securing the network through a proof-of-stake system. Validator nodes and stakers who lock up their tokens receive rewards and fees. This could incentivize more people to buy FTM to participate, and while the tokens are staked, they are effectively removed from the circulating supply.

If there are more developers and applications on the Fantom network, there will be more FTM demand for paying network fees and a greater incentive to stake FTM. It is therefore likely that the value of FTM will increase as the ecosystem expands and Fantom forms new partnerships and integrations.

Live Fantom Value and Market Cap

The live price of Fantom (FTM) varies from moment to moment as it’s dictated by the balance of buyers and sellers on exchanges, which is in constant flux. 

Given FTM’s volatility, its live price can change by a large amount in a very short space of time. The market cap of Fantom is equal to the price of FTM multiplied by the number of FTM in the circulating supply.

Fantom Price FAQ

How is the price of FTM calculated?

FTM’s price at any given time is decided by the balance of supply and demand on exchanges. When more people are buying FTM than selling it, the price goes up, and when more are selling than buying, the price goes down.

Why is the price of FTM different on different cryptocurrency exchanges?

FTM’s price is based purely on trading as there is no standard global Fantom price, so no one knows what it is “supposed” to cost. The trading volume and liquidity are different for each exchange and those differences are what affect the price.

What will FTM be worth in the future?

It’s impossible to make price predictions with any kind of absolute certainty, as a whole host of different factors could play a role in determining the future value of Fantom (FTM). However, there will be more demand for FTM the more users and developers the Fantom network has. It is therefore likely that the value of FTM will rise as the Fantom ecosystem expands and develops.

Conclusion

The price of Fantom has seen some significant change, going from lows of well under a cent to highs of almost a dollar. Its price movements have rarely been smooth, however, as FTM’s volatility has led to surges and crashes throughout its history.

Many different factors have played a role in determining the price of FTM, including demand for staking, the expansion of the Fantom ecosystem, and trends in the rest of the crypto market and wider economy. Its current valuation is derived from the balance of supply and demand in the markets and constantly changes.

If you want to get started with the most user-friendly trading experience on the market, register with Kriptomat today to begin your journey into the world of Fantom and cryptocurrencies!