Key Takeaways
- FTM Price Surge
Fantom (FTM) has surged 103% since August 5, reaching $0.53 by September 16. It has outperformed major cryptocurrencies like Bitcoin and Ether. - Sonic Upgrade Anticipation
The upcoming Sonic upgrade, scheduled for late 2024, is expected to boost network performance to over 2,000 TPS. It will also reduce storage needs by up to 90%. - Strong On-Chain Support
FTM has solid on-chain support between $0.47 and $0.48, with 1,560 addresses holding 242.56 million tokens in this price range. - DeFi Ecosystem Struggles
Despite FTM’s price growth, Fantom’s DeFi ecosystem remains weak. The total value locked (TVL) stands at $86.5 million, far below its March 2022 peak of $7.93 billion. - Renewed Interest in DApps
Daily active addresses on Fantom have jumped 67% in September, signaling renewed interest in its DApps.
FTM’s Performance Compared to Major Cryptos
FTM has climbed 25% over the past week, reaching $0.51 by September 16. Since August 5, it has risen more than 40%. In comparison, Bitcoin has dropped 4%, and Ether has decreased by 12.6% over the same period. The total crypto market capitalization has also fallen 2.5% to $2.02 trillion.
FTM’s remarkable growth makes it one of the top-performing cryptocurrencies by market cap over the last month.
Source | Coinmarketcap
Development Behind the Surge
Crypto trader and investor Mister Crypto attributed Fantom’s rise to ongoing developments behind the scenes. He said, “I believe it will eventually see a massive leg up. It might take some time, but I think it will happen eventually.”
The Impact of the Sonic Upgrade
The most notable development is the upcoming Sonic upgrade, set to launch in late 2024. It will introduce the Fantom Virtual Machine (FVM), an optimized Lachesis consensus mechanism, and Carmen database storage. With Sonic, Fantom will process over 2,000 transactions per second (TPS), up from the current 30 TPS. Sonic will also reduce storage requirements by 90%, making node operation more efficient.
DeFi Ecosystem Struggles Despite Growth
Despite FTM’s price surge, its DeFi ecosystem has not recovered fully. Data from Defillama shows Fantom’s TVL at $86.5 million, down significantly from its $7.93 billion peak in March 2022. However, TVL has increased by 22% since August 8, reflecting renewed interest in Fantom DApps.
Source | Defillama
Glassnode data also shows that daily active addresses (DAA) on Fantom increased by 67% month-to-date, from 203 to 346.
Source | Glassnode
FTM’s Strong On-Chain Support
FTM’s strong performance is supported by robust underlying demand. On-chain data from IntoTheBlock shows that 1,560 addresses purchased approximately 242.56 million FTM tokens in the $0.47-$0.48 range. Increased buying from these investors is likely to sustain FTM’s recovery momentum.
Source | Into The Block
Conclusion
Fantom (FTM) has experienced significant price growth, driven by anticipation of the Sonic upgrade and strong on-chain support. Although Fantom’s DeFi ecosystem is still recovering, growing interest in its DApps and the upcoming network improvements position the network for further expansion.
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