After a powerful 2,000% rally in early 2021, Fantom (FTM) worth collapsed alongside a number of altcoins and regardless that the blockchain has a powerful functionality, it has but to search out mass adoption because of the lack of a compelling use case. FTM worth hit an all-time excessive at $3.46, solely to break down to its pre-bull market lows below $0.25 after the failure of the Solidly DeFi challenge and the departure of developer Andre Cronje.
Information from Cointelegraph Markets Professional and TradingView reveals that since dropping to $0.238, FTM has rallied 119.23% to $0.5216 on Could 23.
Three causes for the uptrend in FTM worth are the launch of the primary native stablecoin on the Fantom community, new protocol upgrades and partnership bulletins, which convey new performance to the community, and hypothesis that Andre Cronje is working with decentralized finance (DeFi) protocols on Fantom.
Fantom launches its first native stablecoin
Probably the most notable improvement to happen within the Fantom ecosystem prior to now few weeks was the discharge of fUSD, the primary native stablecoin on the community.
The launch of fUSD comes on the heels of the collapse of TerraUSD and appears to seize a number of the capital flight from algorithmic stablecoin by providing an over-collateralized different.
On Could 20, the Fantom Basis released an replace outlining the utmost collateral issue and minting cap for every supported type of collateral. The inspiration additionally set the fUSD staking reward at 11.3%
The replace additionally included particulars on Fantom liquid staking, setting a worldwide cap of 150 million staked Fantom (sFTM), eradicating validators for the listing of these eligible to mint sFTM and setting a loan-to-value (LTV) ratio of FTM at 90% for the needs of minting sFTM.
New partnerships enhance sentiment for FTM
A handful of current protocol updates and new partnerships have additionally helped to convey a lift in momentum to Fantom, together with the launch of Snapsync, which permits new nodes to shortly be a part of the community.
With the combination of Snapsync, the time it takes for brand spanking new nodes to synch may very well be decreased from 24 to seven hours, serving to to reinforce community reliability, enhance scalability and create a higher diploma of decentralization.
Fantom has additionally introduced that it’s at present within the strategy of launching Gitcoin on the Fantom community to simplify the method of acquiring grants to develop within the Fantom ecosystem.
Fantom additionally partnered with Unmarshal and XP.Community. Unmarshal is a Web3 infrastructure supplier that may combine its indexing companies with the Fantom protocol to offer builders quick access to organized and granular on-chain knowledge.
By means of the partnership with XP.Community, Fantom customers will be capable to bridge nonfungible tokens (NFTs) between Ethereum (ETH), BNB Good Chain (BNB), Elrond (EGLD), Aurora (AURORA), Tron (TRX), Avalanche (AVAX) and Velas (VLX).
Associated: Crypto remittances will need to have attract of money with out regulatory constraints — Jeremy Allaire
Did Andre Cronje return?
One other issue, albeit speculative, bringing a lift FTM worth is concept that well-known DeFi developer Andre Cronje may very well be contributing towards DeFi improvement on the Fantom community.
Amid rumors in regards to the return of lead DeFi developer Andre Cronje, the worth of the native FTM token has risen by nearly 40%. Cronje proposed a variety of measures aimed toward stabilizing the state of affairs and rising the sustainability of the Fantom ecosystem as a complete.
— Ashley Torres (@torresamba) May 23, 2022
The hypothesis began when Cronje submitted an fUSD optimization proposal that designed to unravel a serious depegging challenge with the stablecoin on Could 20 . A Fantom pockets that’s believed to belong to Cronje has additionally added greater than 100 million FTM over the previous two weeks.
VORTECS™ knowledge from Cointelegraph Markets Professional started to detect a bullish outlook for FTM on Could 20, previous to the current worth rise.
The VORTECS™ Rating, unique to Cointelegraph, is an algorithmic comparability of historic and present market situations derived from a mixture of information factors together with market sentiment, buying and selling quantity, current worth actions and Twitter exercise.
As seen within the chart above, the VORTECS™ Rating for FTM spiked to a excessive of 89 on Could 20 similtaneously its worth started to extend 62.3% over the subsequent three days.
The views and opinions expressed listed here are solely these of the creator and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer includes danger, you need to conduct your individual analysis when making a call.
