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Why Fantom Was Soaring by Over 21% Today

By Eric Volkman – Nov 23, 2021 at 4:02PM

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It's getting integrated into an up-and-coming swap platform.

What happened

Tuesday was a big day in the short history of on-the-rise cryptocurrency Fantom (FTM 10.58%). The coin was gaining more than 21% in value in mid-afternoon trading thanks to an important deal it secured with a fast-growing swap platform.

So what

Earlier today, Fantom and 123swap announced a new partnership. 123swap, one of numerous platforms that allow cryptocurrency holders to -- yes -- swap their assets with relatively little friction, is integrating with Fantom. Being part of the 123swap ecosystem should raise the visibility of Fantom, and make it more attractive as a potential asset involved in swaps.

A person looking at a set of indexes and graphs.

Image source: Getty Images.

That ecosystem is apparently experiencing a significant growth spurt. According to 123swap, its platform is adding one or two outside blockchains weekly. That said, it's still at an early stage of its life, having completed its seed round of funding recently.

This represents an encouraging one-two punch of positive news from Fantom. In its bi-weekly operational update on Monday, Fantom said that since the launch of its Incentive Rewards Program for developers, its total locked value has risen by over 600% to $5.1 billion. Meanwhile, last week it was revealed that total daily transactions hit a new record, at over 1.8 million.

Now what

Fantom has been conceived as a smart-contract-supporting alternative to Ethereum. It utilizes a technology called a directed acyclic graph (DAG) that can be seen as an evolution from the standard blockchain.

Essentially, DAG is a ledger that takes the form of a graph, with transactions "stacked" atop one another instead of "chained" together. Proponents believe DAG platforms make for quicker and more efficient systems than blockchains.

As it's early days for DAGs, the long-term viability of such systems is still to be determined. Still, for Fantom, today's news is undoubtedly a positive development, hence the happy investor reaction.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Ethereum. The Motley Fool has a disclosure policy.

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