Fantom (FTM), the native token of the Fantom blockchain platform, has been on a bullish trajectory over the past month, climbing an impressive 71%. From a low of $0.3574 on September 6 to a high of $0.7642 on October 1, FTM has outperformed much of the crypto market. As of October 2, FTM is trading at $0.6850, having gained 5% in just seven days.
This surge in FTM’s price has sparked renewed attention in the cryptocurrency, which now holds a market capitalization of $9.7 million, placing it as the 46th largest cryptocurrency globally, according to CoinMarketCap. So, what’s fueling this bullish momentum?
Anticipation Builds For The Sonic Upgrade And Rebrand
One of the main catalysts behind FTM’s rally is the excitement surrounding the upcoming Sonic Upgrade. Set to launch in November or December, this upgrade promises to dramatically improve the network’s performance, propelling Fantom into the next generation of blockchain efficiency.
The Sonic upgrade will introduce the Fantom Virtual Machine (FVM) and optimize the Lachesis consensus mechanism, enabling the platform to process over 2,000 transactions per second (TPS) with a finality time of just one second. In comparison, Fantom currently processes around 30 TPS, making this upgrade a significant leap forward in the platform’s scalability.
Additionally, Fantom is preparing for a complete rebranding, including the migration from the FTM token to the new ticker symbol S by the end of 2024. This rebrand will bring about several changes, including new staking mechanisms, community airdrops, and incentive programs, all of which are designed to enhance user participation and network security.
Surging Trading Volumes and Investor Interest
FTM’s bullish run isn’t just about anticipation—it’s backed by strong trading activity. On October 1, FTM’s spot trading volumes surged to $450 million, marking a 77% increase over the previous seven days and a staggering 450% jump over the past month. This surge in volume underscores the growing investor confidence in Fantom’s long-term potential.
At the same time, the number of daily active addresses (DAAs) on the Fantom blockchain has skyrocketed, increasing by 162% between September 1 and October 1. This indicates that more users are interacting with the platform, a trend that typically signals increased demand for the native token.
DeFi Ecosystem Revival and Increased TVL
The impending Sonic upgrade has also breathed new life into Fantom’s decentralized finance (DeFi) ecosystem. According to DeFiLlama, the total value locked (TVL) in Fantom’s DeFi applications rose by 55% in September, reaching $108.8 million. While still far from its March 2022 peak of $7.93 billion, this recent increase in TVL reflects growing user interest in Fantom’s DeFi protocols.
An increase in TVL is often a positive indicator for a blockchain platform, as it signifies higher user engagement and confidence in the network’s DeFi offerings. Along with this, Fantom’s daily transaction count surged by 66% in September, further demonstrating the rising network activity.
Also Read: Fantom (FTM) Skyrockets 20% – Whale Transactions Surge 980% In 24 Hours!
As Fantom approaches its Sonic upgrade and rebrand, market sentiment remains overwhelmingly bullish. With enhanced scalability, faster transactions, and an active user base, FTM is poised for further growth. If the upgrade meets expectations, it could solidify Fantom’s position as a leading layer-1 blockchain, driving additional demand for the new S token and potentially pushing prices even higher.
For now, all eyes are on Fantom’s November upgrade. Will this be the catalyst that propels FTM back to its former highs? Only time will tell, but the signs are promising for this rapidly rising blockchain platform.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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