Currently, Falcon Finance still has a long way to go to compete with top coins in the crypto world, although the project shows significant potential in the stablecoin and hybrid DeFi segments. Here’s the explanation:
Potential and Advantages of Falcon Finance
- Technology Innovation: As a universal guarantee infrastructure, Falcon Finance allows users to mint synthetic stablecoin USDF with various assets (including crypto and tokenized real-world assets) as collateral, without requiring liquidation of ownership. USDF can also be staked to generate SUSDF, an income-generating token driven by institutional trading strategies with an APY of 8-15%. This project also employs delta-neutral strategies, machine learning, and a $10 million insurance fund to manage extreme market risks.
- Rapid Ecosystem Growth: By the end of 2025, the TVL (Total Value Locked) of Falcon Finance reached over $1.9 billion and the supply of USDF exceeded $1.8 billion, making it one of the largest stablecoins in the world. The project has also collaborated with over 50 million merchants through Aeon Pay and is integrated with platforms like BitGo, Morpho, and Euler Frontier.
- Institutional Support: Falcon Finance has received funding from major investors such as M2 Capital, Cypher Capital, and World Liberty Financial, with total funds raised reaching $20 million by October 2025. Relationships with DWF Labs also provide advantages in liquidity, infrastructure, and compliance frameworks.
Challenges and Distance from Top Coins
- Still Small Market Capitalization: As of December 2025, the market capitalization of Falcon Finance's native token (FF) is only around $298 million with a market ranking below #200, which is significantly smaller compared to top coins like Bitcoin (over $1.7 trillion) and Ethereum (over $600 billion).
- Concentration of Governance and Third Party Risk: Despite experiencing rapid growth, Falcon Finance's governance is still concentrated on insiders, and leadership controversies along with relationships with market makers pose unavoidable reputational risks and third-party risks that cannot be mitigated solely through smart contract audits.
- High Competition: In the stablecoin segment, Falcon Finance competes with established players like USDT, USDC, and DAI that have a well-established market share and trust. In hybrid DeFi, there are also other projects offering similar features with different approaches.
- Price Volatility of FF Token: The price of FF has high fluctuations; in the last year (December 2025), the price has dropped over 86% from its peak, indicating significant investment risk.
Therefore, although Falcon Finance has the potential as an innovative DeFi project that connects traditional and decentralized finance, competing with top coins requires exponential market capitalization growth, increased decentralization, and strengthening of competitive advantages that remain in the long term.
