FTM price is recovering from the May 12 low after the launch of stablecoin fUSD and the possible return of Andre Cronje.
After a sharp 2000% surge in early 2021, Fantom (FTM) price collapsed along with several altcoins, and while the blockchain has impressive capabilities, it has yet to find mass adoption due to the lack of a compelling use case. The price of FTM hit an all-time high of $3.46 but fell to its pre-bullish market bottom below $0.25 after the failure of the Solidly DeFi project and the departure of developer Andre Cronje.
Data from Cointelegraph Markets Pro and TradingView shows that FTM is up 119.23% to $0.5216 since falling to $0.238 on May 23.
FTM/USDT 4 hour chart. Source: Trade View
Three reasons for the FTM price uptrend are the launch of the first native stablecoin on the Fantom network, new protocol upgrades and partnership announcements bringing new features to the network, and speculation that Andre Cronje is working with decentralized finance (DeFi) protocols. on the phantom.
Fantom launches its first native stablecoin
The most notable event that has taken place in the Fantom ecosystem over the past few weeks was the release of fUSD, the network’s first native stablecoin.
fUSD’s launch follows the TerraUSD crash and hopes to capture some of the capital outflow from the algorithmic stablecoin by offering an over-collateralised alternative.
On May 20th, the Fantom Foundation released an update listing the maximum pledging rate and coin limit for each supported form of pledging. The fund also set the fUSD staking reward at 11.3%.
The update also includes details on Fantom’s liquid stakes, setting a global limit of 150 million Fantom stakes (sFTM), removing validators from the list of those authorized to create sFTMs, and fixing the credit limit FTM’s LTV to 90%. for sFTM mining purposes.
New partnerships improve attitudes towards FTM
Several recent protocol upgrades and new partnerships have also helped boost Fantom’s momentum, including the introduction of Snapsync, which allows new nodes to quickly join the network.
With the integration of Snapsync, the time required to synchronize new nodes can be reduced from 24 hours to seven hours, which will improve network reliability, improve scalability and increase decentralization.
Fantom also announced that it is currently in the process of launching Gitcoin on the Fantom network to make it easier to receive grants for development in the Fantom ecosystem.
Fantom has also partnered with Unmarshal and XP.Network. Unmarshal is a Web3 infrastructure provider that integrates its indexing services with the Fantom protocol to give developers easy access to organized and granular data on the web.
Through a partnership with XP.Network, Fantom users can trade non-fungible tokens (NFTs) between Ethereum (ETH), BNB Smart Chain (BNB), Elrond (EGLD), Aurora (AURORA), Tron (TRX), Avalanche (AVAX) and Velas (VLX).
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Has André Cronje returned?
Another factor, albeit speculative, that has driven the FTM price higher is speculation that well-known DeFi developer Andre Cronje could contribute to DeFi development on the Fantom network.
Amid rumors of the return of leading DeFi developer Andre Cronje, the native FTM token has surged nearly 40% in price. Cronje proposed a series of measures aimed at stabilizing the situation and increasing the sustainability of the Fantom ecosystem as a whole.
— Ashley Torres (@torresamba) May 23, 2022
Speculation began when Cronje submitted an fUSD optimization proposal on May 20 to address a serious Depeg issue with the stablecoin. The Fantom wallet, believed to be owned by Cronje, has also added over 100 million FTM in the last two weeks.
Cointelegraph Markets Pro VORTECS™ data began revealing a bullish outlook for the FTM on May 20, ahead of 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 such as market sentiment, trading volume, recent price movements, and Twitter activity.
VORTECS™ score (green) compared to FTM price. Source: Cointelegraph Markets Pro.
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