After a strong 2,000% spike in early 2021, Fantom’s (FTM) price collapsed alongside multiple altcoins and even though the blockchain has an impressive capability, it has yet to get large adoption due to the lack of a compelling use case. FTM price hit an all-time high at $3.46, only to collapse to its pre-bull market lows under $0.25 after the failure of the Solidly DeFi project and the departure of developer Andre Cronje.
Data from Cointelegraph Markets Pro and TradingView reveals that since dropping to $0.238, FTM has rallied 119.23% to $0.5216 on May 23.
Three reasons for the spike in FTM prices are the release of the first native stablecoin on the Fantom network, new protocol upgrades and collaboration announcements, which bring fresh operationality to the network, and speculation that Andre Cronje is working with decentralized finance (DeFi) protocols on Fantom.
Fantom launches its first native stablecoin
The most notable development to occur in the Fantom ecosystem in the past few weeks was the release of fUSD, the first native stablecoin on the network.
The release of the fUSD comes on the heels of the collapse of TerraUSD and looks to get some of the capital flight from algorithmic stablecoins by offering an over-collateralized alternative.
On May 20th, the Fantom Foundation launched an update highlighting the maximum collateral factor and minting cap for each supported form of collateral. The foundation also set the fUSD staking reward at 11.3%
The update also included details on Fantom liquid staking, setting a global cap of 150 million staked Fantom (FTM), removing validators for the list of those eligible to mint sFTM, and setting a loan-to-value (LTV) ratio of FTM at 90% to mint FTM.
New partnerships improve sentiment for FTM
A handful of late protocol news and new collaborations have also aided to bring a spike in momentum to Fantom, 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 synch could be reduced from 24 to seven hours, helping to enhance network reliability, improve scalability and create a greater 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 joined the Unmarshal and XP.Network. Unmarshal is a Web3 infrastructure provider that will promote its indexing services with the Fantom protocol to give developers easy access to organized and granular on-chain data.
Via the collaboration with XP. Network, Fantom users will be able to bridge NFTs between Ethereum (ETH), BNB Smart Chain(BNB), Elrond(EGLD), Aurora(AURORA), Tron(TRX), Avalanche(AVAX), and Velas(VLX).
Another factor, albeit speculative, bringing a boost to FTM price is speculation that well-known DeFi developer Andre Cronje could be contributing toward DeFi development on the Fantom network.
The speculation started when Cronje submitted an fUSD optimization proposal that was designed to solve a major debugging issue with the stablecoin on May 20. A Fantom wallet that is believed to belong to Cronje has also added more than 100 million FTM over the past two weeks.
VORTECS™ data from Cointelegraph Markets Pro began to get a bullish outlook for FTM on May 20, before the recent price rise.
The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements, and Twitter activity.
As stated in the chart above, the VORTECS™ Score for FTM spiked to a high of 89 on May 20 at the same time as its price began to increase 62.3% over the next three days.