Newbies: A Comparison Between Terra and Fantom in the Crypto Market

Terra and Fantom are fully deployed and functional in their respective capabilities.

Terra and Fantom are often compared in the crypto market for, they are both supported by sovereign wallets. Just in case you are caught in-between, as to which cryptocurrency to choose, as both are secure and are less dependent on the development team, here are some clues to wade through the crypto market maze.

Though Terra’s ultimate goal is to disrupt the traditional banking system, its utility is limited to maintaining a stable rate for terra’s blockchains and governance on protocols compared to LUNA which has validator rewards, securing governance rights, paying network fee functions incorporated into its ecosystem. This gap in utilities can be because Terra is a late entrant in the crypto market. However, it is surprising to note that Terra has a market cap of around US$33.78 billion compared to Fantom’s market cap of US$4.57 billion. Terra is overpriced and this is probably due to its recent increase in the userbase. Recently it has gained a lot of traction through the payment app CHAI, which is used by 25 million South Koreans.

When it comes to transaction speed Fantom is the winner. Luna coins are three times cheaper to send while their transaction speed is two times slower. As users prefer higher transaction speeds to move faster in a dynamic system, Fantom scores over Terra.

Fantom has a higher inflation rate at 7% compared to 2% of Terra in terms of inflation. When you count the supply and inflation rates, it is safe to bet on Luna given its limited and visible amount of coin supply.

While Terra’s uniqueness lies in its feature, Seigniorage, which creates rewards for validators Fantom has a virtual machine – FVM, similar to EVM to store its database and have better performance. Both are fully deployed and functional in their respective capabilities for an investor to feel safe to invest in.