Fantom Is On Fire. Here's Why This Emerging Crypto Will Stay Hot
Fantom (CRYPTO: FTM) was a rarity in the crypto markets during the past month, rising while Bitcoin, Ethereum, and most other major cryptocurrencies sold off and fell deep into correction territory. So why has Fantom been able to buck the trend and can it continue to outperform? I am bullish on Fantom and believe it is worthy of a place in the portfolios of crypto investors looking for new assets in 2022.
The old adage "follow the money" might as well be "follow the total value locked" when it comes to decentralized finance (DeFi) assets. Total value locked, or TVL, is a measure of the value of all assets locked in, or committed to, a DeFi platform like Fantom. The more value locked in a network, the healthier the network is and the more value investors see in it. Fantom's TVL surged from just under $4 billion on Dec. 22, 2021, to more than $11 billion at the time of writing.
Investors can take a look at the total value locked in a platform and divide it by the coin's market capitalization to get a feel for whether the asset is undervalued or overvalued. Dividing the market cap by the total value locked gives you a number that is similar to calculating the price-to-book value of a traditional company like a bank.
Source Fool.com
