After a robust 2,000% rally in early 2021, Fantom (FTM) price collapsed alongside a number of altcoins and regardless that the blockchain has spectacular functionality, it has but to seek out mass adoption because of the lack of a compelling use case. FTM price hit an all-time excessive at $3.46, solely to break down to its pre-bull maket lows below $0.25 after the failure of the Solidly DeFi undertaking and the departure of developer Andre Cronje.
Data from Cointelegraph Markets Pro and TradingView exhibits that since dropping to $0.238, FTM has rallied 119.23% to $0.5216 on May 23.
Three causes for the uptrend in FTM price embrace the launch of the primary native stablecoin on the Fantom community, new protocol upgrades and partnership bulletins that carry 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
The most notable growth to happen within the Fantom ecosystem previously 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 some of the capital flight from algorithmic stablecoina by providing a over-collateralized various.
On May 20, the Fantom Foundation launched an replace outlining the utmost collateral issue and minting cap for every supported type of collateral. The basis additionally set the fUSD staking reward at 11.3%
The replace additionally included particulars on Fantom liquid staking, setting a world cap of 150 million staked Fantom (sFTM), eradicating validators for the listing of these eligible to mint sFTM and setting a mortgage to worth (LTV) ratio of FTM at 90% for the needs of minting sFTM.
New partnerships enhance sentiment for FTM
A handful of latest protocol updates and new partnerships have additionally helped to carry a lift in momentum to Fantom, together with the launch of Snapsync, which permits new nodes to shortly be part of the community.
With the mixing of Snapsync, the time it take for brand new nodes to synch might be diminished from 24 hours to 7 hours and will assist to reinforce community reliability, enhance scalability and create a larger diploma of decentralization.
Fantom has additionally introduced that it’s at present within the course of 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.Network. Unmarshal is a Web3 infrastructure supplier that can combine its indexing providers with the Fantom protocol to provide builders quick access to organized and granular on-chain information.
Through the partnership with XP.Network, Fantom customers will have the ability to bridge nonfungible tokens (NFTs) between Ethereum (ETH), BNB Smart Chain, Elrond (EGLD), Aurora (AURORA), Tron (TRX), Avalanche (AVAX) and Velas (VLX).
Related: Crypto remittances should have attract of money with out regulatory constraints — Jeremy Allaire
Did Andre Cronje return?
Another issue, albeit speculative, bringing a lift FTM price is theory that well-known DeFi developer Andre Cronje might be contributing towards DeFi growth on the Fantom community.
Amid rumors in regards to the return of lead DeFi developer Andre Cronje, the price of the native FTM token has risen by virtually 40%. Cronje proposed a quantity of measures geared toward stabilizing the scenario and rising the sustainability of the Fantom ecosystem as an entire.
— Ashley Torres (@torresamba) May 23, 2022
The hypothesis began when Cronje submitted an fUSD optimization proposal on May 20 that’s designed to resolve a serious de-pegging difficulty with the stablecoin. A Fatnom pockets which is believed to belong to Cronje has additionally added greater than 100 million FTM over the previous two weeks.
VORTECS™ information from Cointelegraph Markets Pro started to detect a bullish outlook for FTM on May 20, previous to the latest price rise.
The VORTECS™ Score, unique to Cointelegraph, is an algorithmic comparability of historic and present market circumstances derived from a mix of information factors together with market sentiment, buying and selling quantity, latest price actions and Twitter exercise.
As seen within the chart above, the VORTECS™ Score for FTM spiked to a excessive of 89 on May 20 concurrently its price started to extend 62.3% over the following three days.
The views and opinions expressed listed here are solely these of the creator and don’t essentially replicate the views of Cointelegraph.com. Every funding and buying and selling transfer entails danger, you need to conduct your individual analysis when making a call.
