> For the complete documentation index, see [llms.txt](https://peakfinance-dao.gitbook.io/documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://peakfinance-dao.gitbook.io/documentation/peak-finance-docs-v2/the-basic-economic-model/understanding-the-rise-and-fall-of-tomb-finance..md).

# Understanding the rise and fall of Tomb Finance.

To make a fair and honest comparison, we will compare $FTM, $TOMB, and $TSHARE Coin Gecko charts from August 28th 2021 to present November 26th 2022.

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$FTM chart

<figure><img src="https://lh3.googleusercontent.com/qiRGwj9izgy69Tpindxg9KvT9Fz3gUDnfdkjjzwklVKoAHxzBK6fWth0r7iUJ6NBv-ho4FJrUhIQMHyNN3BjtdxAYFPcIo14i16Kw6WQRiwFFYdmmwKxSma_ByksqE3B8nKZLadyCiRBLDXxlCi3mWskc4FmxQIENRXUa5Rn4wrC_auDDSESkjZCQYlFnBh9OqQp2pW-5A" alt=""><figcaption></figcaption></figure>

In the three months between August 2021 to the end of October 2021, $FTM went from $0.50 to $3.46. What sent $FTM to all-time highs so quickly?&#x20;

Bull market aside, Fantom Blockchain was a highly competitive layer-1 blockchain that heavily aligned with a primary investment thesis for 2021. At the time and to this day, Ethereum despite all its well-known shortcomings leads the layer-1 blockchain narrative.&#x20;

Fantom, among other L1 competitors, offered a low-cost and high-speed solution to resolve the many pain points of Ethereum.&#x20;

However, history shows that Fantom was not a panacea with crippling network delays and high variance in cost per transaction. If the chart is anything to go by – the market had lost its appetite for Fantom. Without a marketable differentiator compared to L1 competitors the primary investment thesis for Fantom was the involvement of a highly regarded innovator Andre Cronje. Since he had left Fantom… returned to Fantom… left … again… and has since returned, it appears that Fantom has largely lost credibility due to a perceived lack of innovation and internal dramas.

As it stands, Fantom has by and large lost any competitive edge with innovative L1s such as Near, Avalanche, BNB Chain, and Cosmos.

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$TOMB Chart

<figure><img src="https://lh4.googleusercontent.com/_BJPhVckxaWFalV5tRO_y-kkZ1AulPaOBH8ZbjV0nABJcbis7izJv3d9Kt59ykRSdFNyNRyg8OBNAX1u5q9lldhe4Y3Z8ga5ownjnjI_zLdqYCsHgA6duWhVzqLf6v7oZL1ONvFEeWvRyVnh-souvHg9O77oIcCGByQaE6BGYlUsMy_TiGiTiWnpHkLiDrsosonA_GjejQ" alt=""><figcaption></figcaption></figure>

$TOMB, in fact, had reached a higher all-time price in $US dollar terms than $FTM, at $3.86 due to the $TOMB peg being approximately 1.11 at the time. The all-time high recorded around its launch is flawed in the sense that a lower supply led to a greater price impact, or in more relatable terms, a “pump and dump”.&#x20;

While $TOMB spent a significant amount of time below peg, there was a slight latency in $TOMB: $FTM parity being restored, but sure enough it captured enough interest and capital inflows from those pursuing high yields of a derivative asset of $FTM.&#x20;

$TOMB can only do as well as the asset it is pegged to. If faith is lost in the collateral asset, that contagion will diminish the $US dollar value by the algo-peg design.

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$TSHARE chart

<figure><img src="https://lh4.googleusercontent.com/iqu0G5LmD7tpDaK9mnTyj-dCapqs3fWLGMYQJvh6eClMej3U24wFWHZJ7PSr4yCEb9FMQKZjDmqPfe10n0AxNFtUlRuIAsi8PnHgGauda4x4KRYNNysllAWh69FYUslAKRrsasjkCUbksLgLTpH3RTpp3a6G9vlX9rZlRJvBnnBS-1KCAAhK2NQWWB0px-LLVRWBHWPX5g" alt=""><figcaption></figcaption></figure>

In dollar terms, $TSHARE was a lagging indicator for $FTM’s meteoric rise and is the most interesting aspect of the rise and fall in total value locked on Tomb Finance.

$TSHARE began to make its moves due to a supply squeeze at the end of October at $1300 to march toward a staggering all-time high of $24,382.13 on January 4th.&#x20;

Those that were bullish on $FTM at the time, invested into $TOMB to gain exposure to its success. As the peg exceeded parity, much of the profits realized were used to buy the $TSHARE token. By doing so, they were able to stake $TSHARE to receive a greater share of $TOMB emissions above peg.&#x20;

Given it is a low-supply token and is staked in The Masonry to be competitive in emissions discharged during inflationary epochs. As new money entered, and $TOMB profits entered $TSHARE the price impact was mind-boggling.&#x20;

As we can see on the charts, Tomb Finance’s time has come and gone. Can it restore its dominance?&#x20;

For the reasons we will explore in the next section, it may not be likely unless $FTM becomes competitive in the L1 narrative again unless they achieve a level of utility that gives them an edge. Such speculation is beyond the purview of these documents.

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