Sep 17, 2024

6thTrade

In the last seven days, the price of Fantom (FTM) has surged by 25%, reaching $0.51 as of September 16. This is part of a broader recovery that started on August 6, where the price has jumped more than 40% over the past month. Data from Cointelegraph Markets Pro and TradingView shows that FTM climbed from a low of $0.26 on August 5, marking a significant 103% increase to an intraday high of $0.53 on September 16.

In contrast, Bitcoin (BTC) has seen a decline of 4% in the past 30 days, while Ethereum (ETH) is down 12.6%. However, FTM's recent performance has made it one of the top gainers among the top 100 cryptocurrencies over this period.

According to Mister Crypto, a pseudonymous crypto trader and investor, Fantom’s recent price surge can be attributed to "a lot of development behind the scenes." He added that while it might take time, he expects Fantom to see "a massive leg up" in the future. $FTM

Key Developments Driving Fantom’s Growth

One of the most significant developments fueling Fantom’s rise is the upcoming "Sonic" upgrade, expected in November or December 2024. This upgrade will bring substantial improvements to the network's performance, including the introduction of the Fantom Virtual Machine (FVM), an optimized Lachesis consensus mechanism, and a new Carmen database storage system.

After the Sonic upgrade, Fantom will be able to process over 2,000 transactions per second (TPS), with a finality time of around one second, a massive leap from the current 30 TPS. Tests on the closed testnet have demonstrated that the network can theoretically handle up to 2,000 TPS, with a time to finality of just 729 milliseconds. Sonic will also reduce storage requirements by up to 90%, making node operations more cost-effective and accessible. Additionally, it will be fully compatible with existing Ethereum tools and contracts, enabling support for high-frequency decentralized applications (DApps) without compromising security or decentralization.

DeFi Ecosystem and Investor Sentiment

Despite the exciting upgrades, Fantom’s decentralized finance (DeFi) ecosystem has struggled to regain investor interest. The total value locked (TVL) in Fantom's DeFi applications has dropped significantly to $86.5 million, down from its March 2022 peak of $7.93 billion. However, there has been a glimmer of hope as the TVL has increased by 22% since August 8. Data from Glassnode also shows a 67% rise in daily active addresses (DAA) on the Fantom network, climbing from 203 to 346 month-to-date, suggesting renewed interest in Fantom DApps.

Strong Technical Support and Future Outlook

From a technical standpoint, FTM’s recent performance can be attributed to robust underlying support. On-chain data from IntoTheBlock reveals that 1,560 addresses previously purchased approximately 242.56 million FTM tokens in the demand area between $0.47 and $0.48. This strong base of buyers could help maintain the recovery momentum in the near term.

Furthermore, FTM’s chart is showing signs of a potential bullish move with an inverse head-and-shoulders (IHS) pattern forming. This pattern typically signals a reversal in a downtrend. A daily candlestick close above the neckline at $0.53 could indicate a break towards the pattern’s target of $0.81, which would be a 56% increase from the current price. The relative strength index (RSI) is trending upwards, validating the bullish dominance in the market.

While the potential for future gains is promising, it’s important to remember that all investments carry risks. Investors should do their own research before making decisions.

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Disclaimer: The content of this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and may lead to substantial financial loss. Always perform your own research and consult a qualified financial advisor before making any investment decisions. The opinions expressed are solely those of the author and do not represent the views of the publisher or its affiliates. Investing in cryptocurrencies involves inherent risks, and past performance is not a reliable indicator of future results. Please exercise caution.