Popular altcoin project Fantom has reached a major milestone by rebranding as Sonic Labs. Fantom has finally launched Sonic Protocol, a high-throughput and EVM-compatible layer-1 blockchain platform, on the mainnet. This launch aims to provide developers with a robust infrastructure and attractive incentives to develop functional Decentralized Applications (DApps). Based on months of development and community feedback, the Sonic mainnet launch stands out as a critical step for the altcoin project’s future. So, how will these developments affect the price of Fantom?
Sonic Labs announced the new development in a blog post, explaining some of the key features offered by Sonic Protocol. The new protocol is capable of 10,000 transactions per second and offers sub-second confirmation times. It also has a decentralized gateway compatible with Ethereum (ETH). With these capabilities, developers will be able to create next-generation DApps. The aim behind this launch is to provide users with the most seamless Blockchain experience. With this success, Sonic Labs has the potential to gain more share in the Decentralized Finance (DeFi) and NFT spaces. The rebranding and the new protocol aim to accelerate the project.
As we move towards the new milestone, Sonic Labs announced that it has acquired the Genesis Block for its next-generation smart contract blockchain. It then completed the testnet 2.0 called “Blaze”, enabling testing of the new protocol’s EVM compatibility. This was noted as a significant development that strengthens Sonic Protocol’s first steps on the mainnet.
Although the Sonic Protocol mainnet launch has been completed, the price of Fantom (FTM) has extended its losses. In the last 24 hours, FTM is trading at $1.23, down 8.47%. However, in a notable development, FTM holders will now be able to upgrade their tokens to the "S" token on the Sonic Platform. This transaction will be carried out on a 1:1 basis via the Fantom-Sonic upgrade portal. For example, 100 FTM tokens will convert into 100 S tokens after the upgrade.
This upgrade will introduce users to Sonic apps and provide more opportunities. However, users holding FTM tokens on Ethereum or decentralized exchanges (CEX) will first need to migrate their tokens to the Sonic platform. Sonic Gateway will facilitate this migration process and allow users to transfer their FTM tokens to the Sonic platform.
After the Sonic mainnet launch, free swaps will be possible between FTM and S tokens for the first 90 days. However, after this period, upgrades will only be possible from FTM to S token. This change could lead to FTM tokens losing relevance and create a huge token movement. This may cause concern for some users as they may experience value loss and liquidity issues.
The rebranding of Sonic Labs and the mainnet launch of Sonic Protocol stand out as important milestones for the future of Fantom. However, the upgrade of FTM tokens to Sonic and the accompanying price drop may create uncertainty for investors. This process could lead to major token movements and put pressure on the price. Investors should carefully monitor Sonic Labs’ future developments and the impact of the transition from FTM to S.