Fantom (FTM): Will It Repeat the Success of SOL
Fantom (FTM) is a coin standing out in the past days, with a bid to climb above $1 and possibly continue to higher valuations. FTM made a strong recovery on Monday, up more than 35% while other assets remained stagnant.
FTM is back to $0.68, on track to repeat a previous high of $0.71. The recent price hike hinges on trading volumes going to a three-month high. FTM activity currently takes more than $432M in the past 24 hours.
FTM Joins the DeFi Trend
The rise of FTM shows there is more space for new networks in the DeFi space. The Fantom project resembles Terra (LUNA) in its potential to mint Fantom USD through staking FTM. Thus, the platform is another source of stablecoin liquidity, as well as stablecoin arbitrage on decentralized exchanges.
FTM is a potential competitor to other DeFi platforms, such as Polygon (MATIC) and Solana (SOL). The asset is still attractive for its low per-unit price, and may get a boost from more FTM getting locked for minting stablecoins.
The Fantom network is compatible with the Ethereum virtual machine, and the platform already hosts tokens for decentralized trading.
FTM Shows Favorable Trading Profile
A relatively new arrival to crypto space, FTM enjoys significant liquidity through its Binance trading pairs. The FTM/USDT pair leads the pack with a 52% share of all activity and relatively low price slippage.
FTM is also active on decentralized exchanges, building up Uniswap liquidity where the ETH/FTM liquidity pool gives a slight premium at $0.70. Currently, FTM is in price discovery and may see significant volatility with corrections.
How High Can FTM Go
The recent FTM expansion coincided with price action also boosting SOL, as well as Avalanche, (AVAX). While legacy coins lagged, interest shifted to DeFi tokens.
FTM has no target price, but can be seen as following the path of LUNA and SOL, possibly reaching $10 in the near future.
The recent breakout sparked new optimism, but also caution for newcomers waiting to buy FTM close to its peak price.
Can Fantom Create CBDCs
One of the latest bids for platform operators is to suggest their network can carry Central Bank Digital Currencies, or CBDCs. So far, no public blockchain has been adopted by a central bank.
A similar bid has been made by Quant (QNT), a recently popular Ethereum-based network that promises scaling and decentralized financial operations.
CBDCs are viewed with caution by the cryptocurrency community. On the one hand, they are a sign of technological adoption. On the other hand, central banks are still in control of CBDCs and may control supply and ownership.
The Fantom project has offered a dual option for CBDCs – in theory, they can be moved through existing public blockchains, as well as through a specifically created private network. Fantom plans to present its dual CBDC plan to central banks in the coming months, competing for attention with other technological options.
Fantom Grows its User Base
Since July, the Fantom network is on track to grow its number of active wallets by 300%. The project keeps growing its social media influence, as well as network participants staking FTM for validator nodes.
The FTM token coexists as an asset on the native Fantom network, as well as a token on both Ethereum and Binance Smart Chain. This gives FTM the opportunity to move to various DeFi protocols and decentralized exchanges.
Binance Offers Support for Fantom Chain
The Binance exchange recently announced it will carry FTM in three versions, as ERC-20 token, as Binance Smart Chain token, and as a native asset of the Fantom blockchain.
The new asset is already supported for deposits and withdrawals. The native FTM token can be staked with a dual purpose – as a network verification tool to run a node, or as collateral to create the Fantom USD stablecoin.
Fantom Joins the NFT Hype
Most users seem to regret missing the CryptoPunks hype train. In a single weekend, data showed the cheapest Punk collectible actually raised its price from 78 ETH to above 120 ETH.
NFTs in rare collections are now working like digital real estate. For late arrivals, the Solana network has opened its own SolPunks collection.
Fantom will also carry its own form of NFTs, with the competition open for airdrops and early purchases that may become the next hot collection.
The opening of NFT marketplaces and airdrops will further raise demand for FTM, which can work as a purchasing token for rare items. The Fantom network has already come up with its own form of Punks.
The Fantom community is keen on creating another hub for collectible sales, as the low fees and fast transactions of Fantom makes NFT minting more predictable in comparison to Ethereum-based collectibles.
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