$FTM
Fantom (FTM) is down 12% in the past 24 hours as it approaches key support levels.
The recent shift in market sentiment is supported by the migration to the new Sonic token, which signals a broader trend in the network.
“The number of whale wallets holding 1M-10M FTM tokens has dropped to record lows, and there is a shift in anxious sentiment among major investors,” a COINOTAG observation reads.
Fantom’s price is down 12% and is approaching $0.84, while a decrease in whale activity is observed. The process of FTM’s transition to Sonic token reveals a weak market sentiment.

$FTM


Fantom (FTM), now rebranded as Sonic Labs, has taken a significant step forward with the launch of the Sonic Protocol on the mainnet. This next-generation, high-throughput blockchain platform aims to revolutionize Decentralized Applications (DApps) development and operation. Despite the groundbreaking advancements, FTM continues to face selling pressure. This article explores the implications of the Sonic Protocol launch and its potential impact on FTM, analyzing both the technical and fundamental aspects.

Sonic Protocol: A Game-Changer for Blockchain Developers
The Sonic Protocol is designed to enhance scalability, efficiency, and developer experience. Key features include:

- High Throughput: Capable of executing up to 10,000 transactions per second.
- Sub-Second Finality: Reducing transaction confirmation times to fractions of a second.
- EVM Compatibility: Enabling seamless interaction with Ethereum (ETH) and other blockchain ecosystems.
- Decentralized Gateway: A native bridge to Ethereum for smoother asset and data transfers.

These features position Sonic Labs as a strong contender in the Decentralized Finance (DeFi) and Non-Fungible Token (NFT) spaces, providing developers with the infrastructure to create next-generation DApps.

The launch follows the completion of the “Blaze” testnet, which validated the protocol’s EVM compatibility and performance metrics. Sonic Labs has also achieved the Genesis Block for its new smart contract chain, signaling readiness for widespread adoption.

Fundamental Implications for FTM
The Sonic Protocol introduces a token migration mechanism where FTM holders can upgrade their tokens to “S” tokens on a 1:1 basis using the Sonic upgrade portal. This transition opens users to Sonic’s ecosystem of applications but also raises concerns about FTM’s long-term relevance.

- Free Migration Period: Users can swap FTM for “S” tokens freely within the first 90 days post-launch. After this period, upgrades will only occur from FTM to “S”, potentially phasing out FTM.

- CEX and Ethereum Migration: Holders on centralized exchanges (CEX) or Ethereum must migrate their tokens before upgrading, using the Sonic Gateway.

- Ecosystem Governance: Sonic Labs and the Sonic Foundation will manage DApp development and network governance, ensuring sustainability and innovation.

The introduction of “S” tokens could dilute FTM’s utility, prompting a wave of selloffs as investors adjust to the evolving dynamics.

Technical Analysis
At the time of writing, FTM is trading at $1.166, down 12% over the past 24 hours. The price remains in a bearish zone, showing no immediate signs of recovery. Key technical indicators suggest further downside risk:

- Relative Strength Index (RSI): The RSI stands at 35, indicating oversold conditions but lacking a clear reversal signal.

- Moving Averages: FTM is trading well below its 50-day and 100-day moving averages, reinforcing bearish sentiment.

- Resistance Levels: On the upside, FTM faces resistance at $1.35, a critical level it must reclaim to reverse the current trend.

The MACD indicator also shows a bearish crossover, with the signal line diverging further into negative territory. The lack of sustained buying pressure adds to the concern of continued price declines.

Will Sonic Protocol Spark a Revival?
While the Sonic Protocol offers immense potential for the Fantom ecosystem, the immediate market reaction has been underwhelming. The token migration and uncertainty surrounding FTM’s future utility have overshadowed the protocol’s technical achievements.

However, the long-term outlook remains optimistic. If Sonic Labs can attract significant developer interest and deliver impactful DApps, the ecosystem’s value proposition could strengthen, potentially reviving FTM and its successor, “S”.

Conclusion
The Sonic Protocol’s mainnet launch marks a pivotal moment for Fantom’s evolution. While FTM faces short-term bearish pressure, the protocol’s advanced features and developer-focused approach hold promise for long-term growth. Investors should closely monitor the adoption of Sonic Protocol and the performance of “S” tokens in the coming months to gauge the ecosystem’s trajectory.