Fantom (FTM) has seen a markedly 40% increase in its price over the past month. This uptrend has positioned FTM as one of the top-performing cryptocurrencies among the top 100 by market cap, data from CoinMarketCap testifies. This growth is not merely due to temporary market sentiment but is supported by a combination of technical factors, strategic developments, and broader market conditions.
Top gainers over a one-month interval, Source: CoinMarketCap
The Bullish Drivers Are the Known Culprits
The key drivers of this market upsurge are not farfetched.
For one, the upcoming Sonic upgrade, expected in November or December 2024, is a bigtime factor behind the bullish sentiment. This upgrade will introduce the new Fantom Virtual Machine (FVM), an optimized Lachesis consensus mechanism, and the Carmen database storage system. These enhancements are anticipated to significantly boost the network’s performance, enabling over 10,000 transactions per second (TPS) with a finality time of roughly one second.
The way Fantom’s price has been moving technically has played a big role in its recent increase.
Analysts have identified a classic “cup and handle” pattern, which suggests a bullish continuation. The “cup” represents a rounded bottom that forms over time, followed by a slight downward movement (the “handle”) before a significant breakout. In Fantom’s case, this breakout occurred when the token surpassed key resistance levels at $0.30. Since breaking this barrier, the price has moved towards the $0.45 range, with some predicting that FTM could reach $0.60 or even higher if market conditions remain favorable.
Fantom’s speed, scalability, and low transaction costs have equally drawn numerous DeFi developers. The platform is seen as a viable alternative to Ethereum, which faces issues with network congestion and high fees.
The Market, Whales, and Partnerships
Market sentiment and investor activity have also added fuel to the bullish fire. Investors are increasingly bullish on Fantom, with significant social media discussions and positive sentiment surrounding the Sonic upgrade. Similarly, whale activity is not left behind. There has been a notable increase in whale activity, with large holders accumulating FTM ahead of the mainnet launch.
13. Fantom $FTMThis is not a shiny new coin, but an OG coin with a lot of development behind the scenes. It’s one of my major holdings, and I believe it will eventually see a massive leg up. It might take some time, but I think it will happen eventually. pic.twitter.com/hFiGts2X2N
— Mister Crypto (@misterrcrypto) September 10, 2024
Coinfomania FTM analysis predicts that if the whole crypto market maintains a positive trend, FTM could continue its rally and reach new highs in the coming months. Despite the positive momentum, data from DefiLlama shows that the total value locked (TVL) in Fantom’s DeFi applications has bottomed seriously from its $7.93 billion peak in March 2022 to $86.5 million.
Total value locked on Fantom. Source: DefiLlama
But, beyond technical upgrades, Fantom has seized high-profile partnerships that have reasonably beefed up its credibility. These partnerships extend across public and private sectors, including collaborations with financial institutions exploring blockchain technology for digital infrastructure and secure transactions.
We're very excited to announce that Fantom's technology will be used by the Afghanistan Railway Authority.As part of the digitization of Afghanistan program, Fantom will implement blockchain tools and perform a technological upgrade for the ARA. pic.twitter.com/O5z0CqBJXP
— Sonic Labs (prev. Fantom) (@0xSonicLabs) April 5, 2021
CV Pad @FantomFDNProud to announce our latest partnership with the Fantom Foundation.Fantom is a leading Layer 1 blockchain boasting high-speed transactions and scalability.We will be partnering with Fantom to support ecosystem projects in launching the right way! pic.twitter.com/rt6VAMkopp
— CVPad (@CvPad_xyz) June 6, 2024
Big update for $FTM $SFantom now partners up with Google Cloud! Dapp developers can now take advantage of Googles world class AI and infrastructure pic.twitter.com/dF1YkurL6v
— Ijaz Awan (@realijazawan) May 28, 2024
Notable collaborations include Google Cloud, public and private sector entities in Asia and Europe working on using Fantom for national-scale projects. These efforts have increased Fantom’s visibility and strengthened investor confidence.
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