Fantom Emerges as an Outlier, Surging 70% Amid Market Downturn
Fantom (FTM) stands out in the cryptocurrency market, surging 70% over the past 30 days while major players like Bitcoin (BTC) and Ethereum (ETH) faced declines. The renewed optimism around Fantom can be attributed to a broader ecosystem rebrand and anticipated upgrades that have caught investors’ attention.
FTM Price Skyrockets Despite Market Challenges
FTM, the native asset of the Fantom protocol, has seen a substantial increase of 70% in the past month, defying the broader market trend. On Wednesday, October 2, FTM was trading at $0.6850, marking a 5% increase from the previous week.
Fantom’s “Sonic” Upgrade Sparks Rally
The price surge comes amid anticipation of the upcoming “Sonic” upgrade, scheduled for later this year. This upgrade aims to enhance the blockchain’s overall performance through several key improvements:
- Enhanced Carmen database storage
- Development of a new Fantom Virtual Machine (FVM)
- Reduction of finality time to approximately one second
Additionally, the upgrade will optimize the Lachesis consensus mechanism and significantly increase transaction processing speed from 30 to over 2,000 transactions per second. Alongside these technical advancements, Fantom is undergoing a major rebranding effort to provide greater clarity and visibility for its community, including FTM holders, developers, and validators.
Rebranding to Sonic Labs and Token Migration
Fantom relaunched itself as Sonic Labs in preparation for the upcoming changes, with Sonic Labs now fully operational across all of Fantom’s platforms. A notable part of this rebranding involves changing the native token ticker from FTM to “S” by the end of 2024. Existing FTM holders will have the option to convert their tokens to S at a 1:1 ratio during the migration process.
The excitement surrounding these changes has reignited interest in the Fantom ecosystem. According to data from DefiLlama, Total Value Locked (TVL) across Fantom’s DeFi applications rose by 55% over the past month to reach $108.8 million. Though this value is still below the March 2022 peak of $7.93 billion, it reflects a renewed interest in the platform.
Growth in Network Activity
Network activity on Fantom has also seen significant growth. According to Glassnode, daily active addresses spiked by 162% between September 1 and October 1. Data from FTMScan further revealed that daily transactions increased by 66% during the same period, showcasing the rising interest and engagement within the network.
Fantom Stands Out Amid Broader Market Decline
While the broader crypto market continues to struggle, with major cryptocurrencies experiencing declines, Fantom has managed to maintain its momentum. Bitcoin (BTC), the largest cryptocurrency by market cap, is currently trading at $60,433, down 2.5% over the past 30 days. Similarly, Ethereum (ETH) has seen a 4% drop in value, trading at $2,359.
In contrast, FTM has surged 70% in the last 30 days, reaching $0.6359 at the time of writing. The token is currently ranked as the 48th-largest cryptocurrency by market cap, with a valuation of $1.7 billion.
Future Price Predictions for FTM
On-chain metrics suggest that increasing network activity could drive FTM’s price to around $0.86. Bullish predictions for FTM in 2024 range from $1.02 to $1.72, while some optimistic forecasts suggest it could reach $3 soon. However, investors should remain cautious, as the crypto market is known for its volatility, and bearish projections for 2024 put FTM’s potential low at $0.32.
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