Fantom (FTM) Faces Increased Competition from Toncoin (TON) and Elluminex (ELX)

The recent market rally is seeing big moves from many crypto assets. With more people entering the market, dynamics among major chains are changing

As the recent market rally continues, many crypto assets are seeing big moves. With more people entering the market, the dynamics among major chains are changing, and new challengers are emerging.

In this environment, several sources are presenting increased competition to Fantom. One of the biggest potential competitors is Toncoin, which is rapidly expanding due to its Telegram links. At the same time, the new DeFi hub Elluminex promises to boost Toncoin further.

Meanwhile, despite several significant developments, such as a rebrand and efforts toward decentralization, including reducing the validator self-staking requirement by 90%, to enable more validators to participate in the network, and several partnerships, such as TON’s partnership with Pyth Network for data oracle services, and Elluminex’s cross-chain liquidity network, which will connect TON to the rest of the crypto space, to bring liquidity to TON, and boost its ecosystem.

Despite these developments, and efforts by both networks to expand their ecosystems and attract users, both are facing challenges due to the presence of several other major chains, each with its own strengths and weaknesses.

For example, while Toncoin has seen strong growth this year, on the heels of its network growth, with Toncoin rising 150.70% since the same time last year, to reach its current level of $5.30, the network’s growth has slowed down in recent months.

This is due in part to the fact that several other chains, such as Polygon and Arbitrum, have also seen strong growth this year, thanks to their lower fees and faster transaction times.

As a result, Toncoin is now facing increased competition from these other chains, which are making it more difficult for Toncoin to attract new users and drive up its price.

On the other hand, while several developments are boosting Fantom, including the chain’s recent rebrand to Sonic, to project its high-speed capabilities, and efforts toward decentralization, including reducing the validator self-staking requirement by 90%, these developments have not yet had a major impact on the network’s user base.

As a result, despite the fact that Fantom has seen significant volatility during the last cycle, after doubling to its multi-year high of $1.44, the token lost most of its gains, and is currently trading at $0.5935, down 2.0% from before the cycle started, several other chains, such as Toncoin, are presenting a major challenge to Fantom.