Why Fantom — $FTM is undervalued at $4bn mcap
Those using defi related apps or sites may have encountered TVL which means total value locked.
TVL is a metric that represents the number of assets that have been staked in a particular protocol.
According to defilama, the current TVL across all chains stands at $199.42billion. Exploring the top 6 L1 networks by TVL, we see FTM amongst the top 5 after LUNA, BSC, & AVAX as shown in the attached.
FTM mcap/FDV compared to other EVM chain shows it’s undervalued based on the health of its defi and yield market… let’s dive
BNB smart chain
cSupply & mSupply: at 165.1million/165.1million.
Mcap & FDV: both at $66.3billion
TVL: at $12.5billion
cSupply & mSupply: at 245million/720.0million.
Mcap & FDV: at $21billion/$61.5billion
TVL: at $10.9billion
cSupply & mSupply at 2.5billion/3.1billion
Mcap & FDV at $4.7billion/$5.9billion
TVL: at $8.1billion
$FTM has a TVL decent share of 4% (over $8billion) from the overall $199billion making it the top 5th highest in inter-L1-chain TVL ranking… and the top 4th in EVM compatible chains TVL ranking.
Furthermore, As we can see from the above empirical data, FTM has an FDV/TVL ratio of 0.73 which makes it way undervalued. If we have to weigh the degree of market correction, FTM has about at least 3x its current price ($1.8) to complete in order to have a fair valuation.
Please note: we didn’t use mcap to weigh TVL ratio because it doesn’t take into account future emission — hence FDV/TVL is employed.