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Fantom shows 40% rise in price amid network developments

GrafaGrafa2024/09/17 03:50
By:Isaac Francis

Fantom (CRYPTO:FTM) has experienced a notable surge, with its price rising by 40% over the past month, reaching $0.51 as of September 16. 

This uptrend began on August 6, when FTM's price was at a low of $0.26. 

The token’s performance over the last 30 days makes it one of the top gainers among the 100 largest cryptocurrencies by market capitalization.

The recent rally can be attributed to several developments within the Fantom network. 

Pseudonymous crypto trader Mister Crypto pointed out that there has been “a lot of development behind the scenes” and predicted that “it will eventually see a massive leg up.” 

One of the most anticipated updates is the upcoming Sonic upgrade, which is expected to be launched in November or December 2024. 

This upgrade will introduce a new Fantom Virtual Machine (FVM), an optimized Lachesis consensus mechanism, and a Carmen database storage system. 

These enhancements will reportedly allow the Fantom blockchain to process over 2,000 transactions per second (TPS) with a finality time of about one second, a significant improvement from the current 30 TPS.

Furthermore, Sonic is designed to reduce storage requirements by up to 90%, making node operations more cost-efficient and accessible. 

It is fully compatible with existing Ethereum tools and contracts, making it a robust platform for high-frequency decentralized applications (DApps) without compromising security or decentralization. 

Despite the price surge, Fantom's DeFi ecosystem has not yet seen a revival of investor interest. 

The total value locked (TVL) in Fantom’s DeFi applications is currently $86.5 million, far below its March 2022 peak of $7.93 billion. 

However, there has been a 22% increase in TVL since August 8, indicating some renewed interest in Fantom DApps.

Technically, FTM is positioned just below the neckline of an inverse head-and-shoulders (IHS) pattern. 

A daily close above $0.53 could signal a potential bullish trend, with a target price of $0.81.

At the time of reporting, the Fantom (FTM) price was $0.5139.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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