Fantom Price Rises 70% In 30 Days – What Is FTM Driving?
FTM, native to the Phantom Layer-1 smart contract platform, rose 5% to $0.6850 in seven days on October 2. This started on September 6 and the price has increased by more than 71%. In the last 30 days.
According to data from Cointelegraph Markets Pro and TradingView Fantom (FTM), it rose from a low of $0.3574 on September 6, climbing as much as 103% to a four-month high of $0.7642 on October 1.
FTM/USD Daily Chart. Source: TradingView
Trading activity also moved along with the increase in FTM prices. FTM spot trading volume increased to $450 million on October 1, up 77% over the past seven days and approximately 450% over the past 30 days. Its market capitalization is currently $9.7 million, confirming its position as the 46th largest cryptocurrency in the world, according to CoinMarketCap data.
Let's take a look at the factors behind FTM's latest bullying activity.
The price of the FTM increased prior to the Sonic upgrade and rebranding to the S.
FTM's price rally follows public excitement for a so-called sonic upgrade scheduled for November or December.
The new Sonic Chain is expected to significantly boost network performance by introducing a new Phantom Virtual Machine (FVM), optimized Lachesis consensus mechanism, and Carmen database storage.
After this upgrade, the Fantom blockchain can process more than 2,000 transactions per second (TPS) with a completion time of around one second. This will be a big improvement from the current 30 TPS.
In connection with these events, the Phantom Foundation changed the name of Sonic Labs on August 1. The native token FTM is expected to be the new token ticket $S by the end of 2024.
The Phantom Foundation has rebranded as Sonic Labs. Source: Sonic Labs
The S token differs from FTM in several aspects, including the initial community distribution via airdrop, streamlined staking processes, and new user incentive programs.
In May, the Fantom community approved a proposal to transfer their FTM tokens to S Tokens at a 1:1 ratio during the transition to the Sonic chain.
Related: Fantom Unveils Sonic Foundation for New Sonic Chain
Increase in TVL and network activity
The impending reforms have renewed investor interest in Phantom's decentralized financial ecosystem.
According to data from Defillama, the total value locked (TVL) in Fantom's DeFi applications rose by 55% to $108.8 million last month. However, this is only a shadow of the $7.93 billion peak recorded in March 2022.
Total value locked on Phantom. Source: Defillama
This increase in TVL is a sign of increasing user interaction on the blockchain, as evidenced by the increasing number of addresses that are active every day.
Daily Active Addresses (DAA) refers to the number of unique addresses that have participated in a successful transaction on the blockchain in a given period of time.
According to data from market intelligence firm Gassnode, DAAs on the Phantom blockchain increased by 162% between September 1st and October 1st.
Number of DAAs on FTM. Source: Glassnode
According to data from FTMScan, the number of daily transactions increased significantly, from 217,487 to 361,345 in the month, a 66% increase.
This increase in TVL and network activity is a sign of increasing user interaction on the blockchain, which is driving demand for the FTM token. High demand is often a prerequisite for price growth.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
