The 'FOAN' narrative has gained favor among crypto investors in search of the next layer 1 play. By shauryamalwa
Layer 1 blockchains are platforms such as Ethereum, Fantom and Solana that can support products and services built atop their networks. DeFi refers to blockchain-based products that rely on smart contracts instead of third parties to provide financial services to users.
Interest in FOAN comes on the back of a nearly 400% rise in solana , terra , and avalanche – colloquially theFTM rose to $2.8 in European morning hours on Wednesday. The price had sunk to as low as $2.10 over the weekend before breaking through the $2.50 resistance level yesterday. FTM could be primed to reach the $3 mark should sentiment in the broader market stay intact.Harmony's ONE token has surged more than 14% in the past 24 hours to trade at $0.32 at the time of writing.
The FOAN trade outperformed as other major cryptocurrencies posted more muted gains. Bitcoin rose 2%, while SOL, cardano , and ether saw increases of up to 5%.Fundamentals for the FOAN bet show promise for traders. DeFi activity on Cosmos and Near have grown in the past months ahead of planned upgrades on both blockchains. More than $154 million worth of assets are staked on Near-based DeFi protocols, with exchange and lending tool Ref Finance locking up over $104 million alone.
Transactional activity on Fantom has also heated up, and overtook Avalanche's last week. More than 1 million transactions were processed on the Fantom network last Wednesday, with transactional activity higher than on Avalanche on both Thursday and Friday. This is despite Avalanche locking up more value than Fantom on DeFi applications – $11 billion compared with $6 billion – and hosting 127 DeFi protocols versus Fantom’s 112.
Interest in Fantom received an extra boost in the past week as Daniele Sestagalli and Andre Cronje – developers known for launching protocols on Avalanche, Ethereum and Fantom that lock billions of dollars in value – announced aHarmony enjoyed much of its hype in the past month with the rise of DeFi Kingdom, an integrated game, exchange, and non-fungible token project that’s locked over $740 million worth of its native token, JEWEL, and other assets since its launch.