FTM Soars 70% in a Month: Key Drivers Revealed!

Price Movement Overview

According to data from Cointelegraph Markets Pro and TradingView, the price of Fantom (FTM) climbed from a low of $0.3574 on September 6 to a four-month high of $0.7642 on October 1, representing an impressive 103% increase.

Additionally, trading activity has mirrored FTM’s price surge, with spot trading volumes surpassing $450 million on October 1. This marks a 77% increase over the last seven days and an astonishing 450% rise over the past month. Currently, Fantom’s market capitalization stands at $9.7 million, solidifying its position as the 46th largest cryptocurrency globally, according to CoinMarketCap.

Factors Behind FTM’s Bullish Momentum

Sonic Upgrade and Rebranding

The recent rally in FTM’s price can be attributed to the community’s excitement surrounding the upcoming Sonic upgrade, scheduled for November or December. The new Sonic chain is anticipated to significantly improve the network’s performance through:

• A new Fantom Virtual Machine (FVM)
• An optimized Lachesis consensus mechanism
• A revamped Carmen database storage

After the upgrade, the Fantom blockchain will have the capacity to process over 2,000 transactions per second (TPS), with a finality time of roughly one second—an impressive enhancement from the current 30 TPS.

In line with these preparations, the Fantom Foundation rebranded Sonic Labs on August 1. The change from FTM to the new token ticker $S is expected to occur by the end of 2024. The new token will feature several distinctions from FTM, including:

• Initial community distribution through an airdrop
• Streamlined staking processes
• New user incentive programs

In May, the Fantom community approved a proposal to migrate their FTM tokens to the $S token at a 1:1 ratio during the transition to the Sonic chain.

Increased Total Value Locked (TVL) and Network Activity

The impending upgrade has reignited investor interest in Fantom’s decentralized finance (DeFi) ecosystem. According to data from DefiLlama, the total value locked (TVL) in Fantom’s DeFi applications has risen by 55% in the last month to $108.8 million. However, this is still a fraction of its peak of $7.93 billion recorded in March 2022.

This increase in TVL indicates a growing user interaction with the blockchain, supported by a rise in daily active addresses (DAA). Data from market intelligence firm Gassnode shows that DAAs on the Fantom blockchain surged by 162% from September 1 to October 1.

Moreover, the number of daily transactions has significantly increased, rising by 66% from 217,487 to 361,345 month-to-date, according to data from FTMScan. This growth in TVL and network activity signals increasing demand for the FTM token, often a precursor to substantial price growth.

Conclusion

As Fantom prepares for the Sonic upgrade and sees a surge in network activity, the outlook for FTM remains optimistic. However, readers should note that this article does not contain investment advice or recommendations. Every investment and trading move involves risk, and it is essential to conduct thorough research before making any decisions.