As a seasoned analyst with over two decades of experience in the tech and finance industries, I must admit that I am quite intrigued by Fantom’s recent price recovery. The imminent launch of Sonic, its layer-1 network, seems to be the driving force behind this bullish momentum.
Currently, Fantom’s cryptocurrency (FTM) is experiencing a significant surge in bullish energy, and there’s a growing possibility that its value could reach as high as $2. This optimistic outlook stems from the strong fundamental aspects of Fantom, which have ignited a favorable attitude among investors. The upward trend in FTM price can be attributed to these robust foundations.
What Is Driving The FTM Price Recovery
As a researcher, I’ve been closely observing the market trends and I can confidently say that the resurgence in Fantom’s price is primarily fueled by its robust fundamentals, particularly the upcoming launch of the Sonic network. Recently, Sonic Labs disclosed that the Sonic network is slated for release between November and December 2024. The anticipation surrounding this transition to Sonic has been perceived as bullish by investors, which seems to be the reason behind their increased interest and investment in the Fantom (FTM) ecosystem prior to the launch.
As per the announcement, the blockchain network Sonic is set to become EVM-compatible, making it simple for decentralized applications (dApps) constructed on other EVM-based chains to seamlessly join the network. Additionally, the network will offer a secure passageway to Ethereum via its layer-2 network.
The article additionally asserted that during its debut, Sonic promises to offer the swiftest network for digital assets capable of processing over 10,000 transactions per second (TPS) and confirming transactions within a second. This groundbreaking speed could redefine the blockchain sector, positioning Sonic as a leader among its peers.
After Sonic’s release, an airdrop is planned, which should bring more liquidity into the Fantom system and potentially boost FTM prices again. The Sonic Foundation will distribute 190 million S tokens from their 500 million reserve to Fantom community members.
It’s notable that FTM holders can exchange their tokens for the S token, Sonic’s native currency, upon the debut of the new layer-1 network. In the initial six months, the supply of the S token won’t increase, which is beneficial as it means investors won’t have to worry about a sudden surge in supply following Fantom’s shift to Sonic.
Other bullish fundamentals sparking the FTM price recovery include the fact that Andre Cronje, Sonic Labs’s co-founder, will build new decentralized finance (DeFi) primitives, with 90% of gas spent said to be going back to applications and developers.
The Charts Also Support Fantom’s Bullish Fundamentals
According to crypto analyst Jagoilio, the charts indicate a potential increase in FTM price due to its recovery. He noted that Fantom has surpassed its bearish phase and is aiming to break through its diagonal resistance, suggesting a stronger bullish market pattern and a possibility of reaching new highs.
Analysts predict a significant price surge for Fantom (FTM) in the final quarter, particularly after the Federal Reserve’s interest rate reductions and the US presidential elections. Jagoilio even suggested that FTM could surpass Bitcoin and Ethereum in performance. Moreover, he believes Sonic will rise to be the top layer-1 solution, outperforming Solana.
As per data from CoinMarketCap, Filecoin (FTM) is currently being traded at approximately $0.57, marking an increase of more than 9% within the past 24 hours.
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2024-09-19 04:43