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The super optimistic vision of Frax Finance: TVL of 100 billion dollars by 2026 for the layer-2 Fraxtal

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Yesterday, Frax Finance, one of the most innovative DeFi projects in web3, released the initial phase of its roadmap “Frax Singularity”, which will see the inclusion of 23 appchains or L3 to its cryptographic infrastructure in the next 365 days.

Among the goals set by the Frax team is also the achievement of a TVL of 100 billion dollars by 2026 for the layer-2 Fraxtal that will power the myriad of interconnected independent chains.

This is a very ambitious roadmap, which assumes a general growth of the market in the coming years.

Let’s see all the details below.

Frax Finance’s roadmap foresees a TVL of 100 billion dollars by 2026 for the L2 Fraxtal

Yesterday, Sam Kazemian, founder of the decentralized finance protocol Frax Finance, published together with other community collaborators the roadmap of the project in its first post-singularity phase within the section dedicated to governance decisions.

Let’s talk about a very important document that presents the goals and ambitions of the cryptographic ecosystem in the coming months/years, now that Frax’s annual revenues allow the project to self-sustain without the need for external funding.

Frax released a roadmap, aiming to achieve more than $100 billion in Fraxtal TVL by the end of 2026; launch 23 officially provided L3s in the next 365 days; new assets such as frxNEAR, frxTIA and frxMetis may be launched this year; 50% of the revenue flows to veFXS , and the…

— Wu Blockchain (@WuBlockchain) March 22, 2024

Among the most interesting details to report, we immediately notice the intention to launch 23 different layer-3 networks in the next 365 days, which will be supported by the Fraxtal scaling solution, based on the Ethereum blockchain.

These new networks provide a highly customizable development base according to the needs of the infrastructure, and at the same time interoperable with the rest of the cryptographic sector.

Parallel to the occupation of the 23 slots for independent projects and the launch of these layer-3, the Frax Finance team intends to inaugurate a series of new resources such as frxNEAR, frxTIA, and frxMETIS.

Other existing assets such as FRAX, sFRAX, frxETH (LST token) will be issued on Fraxtal in the near future, expanding the potential opportunities and connections of the blockchain.

It is also worth noting that among the challenges set, there is the achievement of a TVL of 100 billion dollars by 2026 for the layer-2 Fraxtal.

This is a highly ambitious goal considering that currently the Optimium network has a total value of locked funds of only 17.6 million dollars.

Source: L2Beat

According to the roadmap, Frax Finance also intends to push for global adoption of its stablecoin FRAX, with the goal of making it one of the top 10 cryptocurrencies still pegged to the dollar while simultaneously increasing yields in staking (sFRAX)

Analysis of the Frax Share (FXS) token: possible future appreciation

The governance proposal put forward by the Frax Finance community also includes the introduction of a revenue sharing mechanism of the protocol with the stakers of its native tokens.

In particular, the aim is to create greater utility and incentives around the governance token FXS, which was heavily disadvantaged in the initial development phase of the project.

As we can read in the roadmap document:

“To get here, Frax has generated over 45 million dollars to effectively reach 100% CR. It has been a huge effort by everyone, including a significant sacrifice by FXS holders to improve Frax’s overall health. Now the situation can completely change.”

The new proposal, put forward by the founder.Kazemian, involves using 50% of the fees generated by the protocol to purchase spot the FXS token and other Frax assets to be paired in the FXS Liquidity Engine (FLE).

The other 50% will be converted into yield in the form of veFXS (a token offered as income to FXS holders) to incentivize participants to lock their coins in the application.

In this way Frax will continue to significantly increase its liquidity as the protocol earns fees, simultaneously pushing up the demand pressure for the FXS resource.

Graphically, the cryptocurrency in question has been showing disappointing price action for several years now, but we could now be witnessing a phase of rebirth.

If the new proposal were to be successful, FXS would most likely become attractive again to speculators, who would push the price above the $11.5 resistance in the short term.

In the medium/long term, assuming that the project grows and that the Fraxtal layer-2 reaches its set goals, it is possible that the currency exceeds its previous all-time high of 45.9 dollars entering a price discovery phase.

It’s time to reevaluate tokens like FXS, taking money away from useless projects like memecoins and providing economic value to those infrastructures that truly make a difference in the DeFi world.

Extremely bullish on the future of Frax Finance and its tokens.

Weekly price chart of Frax Finance (FXS/USDT), Binance market 

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