After a powerful 2,000% rally in early 2021, Fantom (FTM) price collapsed alongside a number of altcoins and although the blockchain has a powerful functionality, it has but to search out mass adoption as a result of lack of a compelling use case. FTM price hit an all-time excessive at $3.46, solely to break down to its pre-bull market lows underneath $0.25 after the failure of the Solidly DeFi mission and the departure of developer Andre Cronje.
Knowledge from Cointelegraph Markets Professional and TradingView exhibits that since dropping to $0.238, FTM has rallied 119.23% to $0.5216 on Could 23.
Three causes for the uptrend in FTM price are the launch of the primary native stablecoin on the Fantom community, new protocol upgrades and partnership bulletins that deliver new performance to the community, and hypothesis that Andre Cronje is working with decentralized finance (DeFi) protocols on Ghost.
Fantom launches its first native stablecoin
Essentially the most notable improvement to happen within the Fantom ecosystem prior to now few weeks was the discharge of fUSD, the primary native stablecoin on the community.
The launch of fUSD comes on the heels of the collapse of TerraUSD and appears to be like to seize some of the capital flight from algorithmic stablecoin by providing an over-collateralized various.
On Could 20, the Fantom Basis launched an update outlining the utmost collateral issue and minting cap for every supported type of collateral. The inspiration additionally set the fUSD staking reward at 11.3%
The replace additionally included particulars on Fantom liquid staking, setting a world cap of 150 million staked Fantom (sFTM), eradicating validators for the listing of these eligible to mint sFTM and setting a mortgage to worth (LTV) ratio of FTM at 90% for the needs of minting sFTM.
New partnerships enhance sentiment for FTM
A handful of current protocol updates and new partnerships have additionally helped to deliver a lift in momentum to Fantom, together with the launch of Snapsync, which permits new nodes to shortly be a part of the community.
With the mixing of Snapsync, the time it takes for brand new nodes to synch may very well be decreased from 24 hours to 7 hours and will assist to reinforce community reliability, enhance scalability and create a larger diploma of decentralization.
Fantom has additionally introduced that it’s at present within the course of of launching Gitcoin on the Fantom community to simplify the method of acquiring grants to develop within the Fantom ecosystem.
Fantom additionally partnered with Unmarshal and XP.Community. Unmarshal is a Web3 infrastructure supplier that may combine its indexing providers with the Fantom protocol to provide builders easy accessibility to organized and granular on-chain information.
By the partnership with XP.Community, Fantom customers will have the ability to bridge nonfungible tokens (NFTs) between Ethereum (ETH), BNB Sensible Chain (BNB), Elrond (EGLD), Aurora (AURORA), Tron (TRX), Avalanche ( AVAX) and Velas (VLX).
Associated: Crypto remittances will need to have attract of money with out regulatory constraints — Jeremy Allaire
Did Andre Cronje return?
One other issue, albeit speculative, bringing a lift FTM price is concept that well-known DeFi developer Andre Cronje may very well be contributing towards DeFi improvement on the Fantom community.
Amid rumors in regards to the return of lead DeFi developer Andre Cronje, the price of the native FTM token has risen by nearly 40%. Cronje proposed a quantity of measures geared toward stabilizing the state of affairs and growing the sustainability of the Fantom ecosystem as a complete.
— Ashley Torres (@torresamba) May 23, 2022
The hypothesis began when Cronje submitted an fUSD optimization proposal on Could 20 that’s designed to resolve a significant depegging concern with the stablecoin. A Fantom pockets t is believed to belong to Cronje has additionally added greater than 100 million FTM over the previous two weeks.
VORTECS™ information from Cointelegraph Markets Professional started to detect a bullish outlook for FTM on Could 20, previous to the current price rise.
The VORTECS™ Rating, unique to Cointelegraph, is an algorithmic comparability of historic and present market circumstances derived from a mix of information factors together with market sentiment, buying and selling quantity, current price actions and Twitter exercise.
As seen within the chart above, the VORTECS™ Rating for FTM spiked to a excessive of 89 on Could 20 concurrently its price started to extend 62.3% over the subsequent three days.
The views and opinions expressed listed below are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer includes threat, it is best to conduct your individual analysis when making a call.
