After a robust 2,000% rally in early 2021, Fantom (FTM) value collapsed alongside a number of altcoins and despite the fact that the blockchain has a powerful functionality, it has but to search out mass adoption as a result of lack of a compelling use case. FTM value 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 mission and the departure of developer Andre Cronje.
Knowledge from Cointelegraph Markets Professional and TradingView reveals that since dropping to $0.238, FTM has rallied 119.23% to $0.5216 on Might 23.
Three causes for the uptrend in FTM value are the launch of the primary native stablecoin on the Fantom community, new protocol upgrades and partnership bulletins, which deliver 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
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Essentially the most notable growth 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 among the capital flight from algorithmic stablecoin by providing an over-collateralized various.
On Might 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 world 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 latest protocol updates and new partnerships have additionally helped to deliver a lift in momentum to Fantom, together with the launch of Snapsync, which permits new nodes to rapidly be part of the community.
With the mixing of Snapsync, the time it takes for brand new nodes to synch could possibly be lowered from 24 to seven hours, serving to to reinforce community reliability, enhance scalability and create a better diploma of decentralization.
Fantom has additionally introduced that it’s at the moment within the technique 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 providers with the Fantom protocol to provide builders quick access to organized and granular on-chain knowledge.
By the partnership with XP.Community, Fantom customers will have the ability 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 should have attract of money with out regulatory constraints — Jeremy Allaire
Did Andre Cronje return?
One other issue, albeit speculative, bringing a lift FTM value is theory that well-known DeFi developer Andre Cronje could possibly be contributing towards DeFi growth on the Fantom community.
Amid rumors concerning the return of lead DeFi developer Andre Cronje, the worth of the native FTM token has risen by virtually 40%. Cronje proposed quite a few measures geared toward stabilizing the state of affairs and growing 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 resolve a significant depegging concern with the stablecoin on Might 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 Might 20, previous to the latest value rise.
The VORTECS™ Rating, unique to Cointelegraph, is an algorithmic comparability of historic and present market situations derived from a mixture of knowledge factors together with market sentiment, buying and selling quantity, latest value actions and Twitter exercise.
As seen within the chart above, the VORTECS™ Rating for FTM spiked to a excessive of 89 on Might 20 similtaneously its value started to extend 62.3% over the following three days.
The views and opinions expressed listed here are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer includes threat, it’s best to conduct your personal analysis when making a choice.
The journalist is a writer and digital nomad. Loves thinking, learning, and writing about all things Web3, particularly its impact on major creative industries.