By Menno — 13 years in crypto, 3 bear markets survived, zero paid promotions
Last updated: April 2026
Fantom (FTM) Risk Score
Fantom (FTM) has a composite risk score of 11/100, classified as Very Low Risk. This score is derived from 6 active indicators and updates every 6 hours. DAG-based smart contract platform known for fast finality.
Fantom Risk Score
Very Low Risk
What Does This Score Mean?
A score of 11 means Fantom is in the Very Low Risk zone. Scores below 40 indicate relatively lower risk conditions, while scores above 60 suggest elevated risk.
This composite is computed from up to 9 indicators including on-chain data, market sentiment, and price action. The individual indicator scores are available to Alpha Factory members.
Scoring Indicators
| Indicator | Weight | Status |
|---|---|---|
| Risk Wave | 23% | Core |
| RSI (2-Week) | 18% | Core |
| ATH Distance | 5% | Core |
| Bitcoin Dominance | 5% | Core |
| Fear & Greed Index | 14% | Core |
| ALT/BTC Ratio | 5% | Core |
| BTC Production Cost | 9% | Core |
| Funding Rate | 5% | Modifier |
| Token Unlocks | 18% | Modifier |
Fantom Investment Context
Fantom attracted significant developer activity during the 2021 DeFi expansion due to its low fees and EVM compatibility. Its ongoing Sonic upgrade targets substantially higher throughput, positioning the network for future DeFi and application demand. The chain benefits from a mature validator set and an established ecosystem of DeFi protocols.
Key Features:
- Lachesis consensus achieves asynchronous Byzantine fault tolerance with near-instant finality
- EVM-compatible, allowing Ethereum smart contracts and tooling to be deployed with minimal changes
- Opera mainnet separates transaction ordering from execution to enable high throughput
- Sonic upgrade (2024) targets 10,000+ TPS and includes a new developer incentive program
Key Risks:
- Faces intense competition from other EVM-compatible Layer 1s such as Avalanche, BNB Chain, and newer chains
- Key developer departures in 2023 raised questions about protocol continuity and long-term direction
- Ecosystem activity remains closely tied to broader DeFi market sentiment, amplifying drawdowns in bear markets
Layer 1 Category
Layer 1 blockchains are the foundational networks of crypto — they process transactions, secure the network, and host applications.
Strategy: Layer 1 tokens tend to follow Bitcoin's macro cycles but with higher volatility. A disciplined DCA approach with clear exit targets works best.
View all Layer 1 risk scores →Compare with Layer 1 Peers
| # | Coin | Score |
|---|---|---|
| 1 | Flow FLOW | 5 |
| 2 | Cardano ADA | 7 |
| 3 | Sei SEI | 7 |
Frequently Asked Questions
What is the current risk score for Fantom?
Fantom (FTM) currently has a composite risk score of 11/100, classified as "Very Low Risk". This score is derived from 6 active indicators including Risk Wave, RSI, and market sentiment data.
How risky is Fantom compared to other Layer 1 coins?
Layer 1 coins generally carry medium to high risk. Layer 1 blockchains are the foundational networks of crypto — they process transactions, secure the network, and host applications. Among peers, Flow currently shows the lowest risk in this category.
What indicators are used to score Fantom?
The Fantom risk score uses up to 9 indicators: Risk Wave (momentum), 2-week RSI (overbought/oversold), ATH Distance, Bitcoin Dominance, Fear & Greed Index, ALT/BTC Ratio, BTC Production Cost, Funding Rate, and Token Unlocks. Each indicator is weighted based on its predictive value for altcoin market conditions.
Should I invest in Fantom based on this risk score?
Risk scores are for informational purposes only and do not constitute financial advice. Fantom attracted significant developer activity during the 2021 DeFi expansion due to its low fees and EVM compatibility. Its ongoing Sonic upgrade targets substantially higher throughput, positioning... Always do your own research and consult a financial advisor.