Fantom Rebounds 45% on Andre Cronje Comeback Speculation

Fantom’s FTM token has rallied since Andre Cronje issued a proposal to recuperate fUSD’s peg.

Andre Cronje Submits fUSD Proposal

Fantom is gaining important bullish momentum as hypothesis mounts about Andre Cronje’s doable return to DeFi.

Cronje has prompted a stir within the Fantom group over the previous few days after he submitted a fUSD optimization proposal that goals to resolve the stablecoin’s extreme de-pegging situation. Cronje, who turned identified for creating the yield optimization device Yearn Finance and a number of different DeFi protocols, introduced he can be leaving crypto to return to the normal finance sector in March, days after launching his long-awaited Solidly undertaking on Fantom.

Furthermore, a Fantom address broadly believed to belong to Cronje has added over 100 million FTM up to now two weeks, which has added to the hypothesis surrounding his doable return to the Fantom ecosystem.

The fUSD proposal comes throughout a turbulent interval for the stablecoin market. Earlier this month, Terra suffered a dramatic collapse after its UST stablecoin misplaced its peg to the greenback. Nonetheless, the Fantom Basis not too long ago put out a Twitter update stating that “fUSD shouldn’t be UST,” including that fUST is “over-collateralized” and backed by staked FTM. “Customers create fUSD by borrowing towards their staked FTM. If the worth of the FTM goes beneath the minimal collateral ratio, then the FTM is progressively auctioned off to customers who bid utilizing fUSD (to maintain peg),” the publish learn.

Nonetheless, it stays to be seen whether or not Cronje’s proposal will help fUSD regain its $1 peg.

FTM Meets Resistance

FTM rallied by greater than 45% over the weekend, indicating that market contributors trust that fUSD will be saved. The sudden upswing derived from a symmetrical triangle breakout that developed on the four-hour chart.

Regardless of the numerous positive factors, Fantom seems to have reached resistance.

Transaction historical past reveals that 207 addresses have beforehand bought practically 85 million FTM between $0.49 and $0.51. This important provide barrier might stop costs from advancing additional as addresses look to interrupt even on their underwater positions.

A sustained four-hour shut above $0.51 might assist Fantom achieve additional momentum to advance to $0.56. Failing to beat the $0.51 might encourage merchants to promote their holdings, doubtlessly pushing FTM again to the $0.43 assist degree.

Disclosure: On the time of writing, the creator of this piece owned BTC and ETH.