After a strong rally of 2000% in early 2021, the price of Phantom (FTM) it crashed along with several altcoins and while the blockchain has impressive capacity, it has yet to find mass adoption due to the lack of a compelling use case. FTM price hit an all-time high of $3.46, only to collapse to its pre-market lows on the rally below $0.25 following the failure of the Solidly DeFi project and the departure of developer Andre Cronje.
Data from Cointelegraph Markets Pro and TradingView shows that since falling to $0.238, FTM is up 119.23% to $0.5216 on May 23.
Three reasons for the bullish trend in the price of FTM They include the launch of the first native stablecoin on the Fantom network, new protocol updates and partnership announcements that bring new features to the network, and as a bonus, speculation that Andre Cronje is working with Fantom-based decentralized finance (DeFi) protocols. .
Fantom launches its first native stablecoin
The most notable development that happened in the Fantom ecosystem in recent weeks was the launch of fUSD, the first native stablecoin on the network.
The launch of fUSD comes on the heels of the debacle of TerraUSD Y seeks to capture some of the capital flight from the algorithmic stablecoin by offering an overcollateralized alternative.
On May 20, the Fantom Foundation published a update which describes the maximum collateral factor and mintage limit for each form of collateral supported. The foundation also set the fUSD staking reward at 11.3%.
The update also included details on Fantom’s liquid stake, setting a global limit of 150 million staked Fantom (sFTM), removing validators from the list of those eligible to mint sFTM, and setting an FTM loan-to-value (LTV) ratio at 90% for SFTM minting purposes.
New partnerships enhance FTM sentiment
A handful of recent protocol updates and new partnerships have also helped push Fantom forward, including the release of Snapsync, which allows new nodes to quickly join the network.
With the integration of Snapsync, the time it takes for new nodes to sync could be reduced from 24 hours to 7 hours and will help improve network reliability, improve scalability, and create a higher degree of decentralization.
Fantom has also announced that it is currently in the process of launching Gitcoin on the Fantom network to simplify the process of obtaining grants to develop in the Fantom ecosystem.
Fantom also partnered with unmarshal Y XP.Network. Unmarshal is a Web3 infrastructure provider that will integrate its indexing services with the Fantom protocol to give developers easy access to organized and granular on-chain data.
Through the partnership with XP.Network, Fantom users will be able to pool non-fungible tokens (NFTs) between Ethereum (ETH), BNB Smart Chain, Elrond (EGLD), Aurora (AURORA), Tron (TRX), Avalanche (AVAX ) and Candles (VLX).
Is André Cronje back?
Another factor, albeit speculative, that increases the price of FTM is speculation that well-known DeFi developer Andre Cronje might be contributing to DeFi development on the Fantom network.
Amid rumors about the return of lead DeFi developer Andre Cronje, the price of the native FTM token has risen by almost 40%. Cronje proposed a number of measures aimed at stabilizing the situation and increasing the sustainability of the Fantom ecosystem as a whole.
— Ashley Torres (@torresamba) May 23, 2022
Amid rumors of the return of lead DeFi developer Andre Cronje, the price of the native token FTM has jumped nearly 40%. Cronje proposed a series of measures aimed at stabilizing the situation and increasing the sustainability of the Fantom ecosystem as a whole.
The speculation began when Cronje submitted an optimization proposal for fUSD on May 20 that is designed to solve a major decoupling issue with the stablecoin. A Fatnom wallet believed to belong to Cronje has also added more than 100 million FTMs in the last two weeks.
Cointelegraph Markets Pro’s VORTECS™ data began spotting a bullish outlook for FTM on April 20, prior to the recent price rally.
Exclusive to Cointelegraph, the VORTECS™ Score is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trade volume, recent price movements, and online activity. Twitter.
As seen in the chart above, the VORTECS™ Score for FTM reached a high of 89 on May 20 at the same time its price began to rise 62.3% over the next three days.
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