Fantom (FTM) Price Rises Over 17%, Making It Today’s Top Gainer
FTM is the biggest gainer today, potentially due to an anticipated Sonic Launch. More upside expected in the near term.
Key Takeaways
- FTM surged 60% since its $0.36 monthly low on Sept. 6.
- Sonic migration will boost FTM demand with a 1:1 token swap.
- FTM targets $0.70 resistance, possible rise above $1 soon.
The price of Fantom (FTM) increased by 60% from its recent $0.36 low on Sept. 6, reaching a high of $0.57 today, Sept. 17. While the overall market showed some bullish signs in the past 24 hours, FTM jumped over 17%, making it the biggest gainer on the day.
The Sonic Launch is expected in Q3, when the migration between FTM and Sonic (S) will occur in a 1:1 ratio, which could be the fundamental driving force behind this rise. But is this anticipation enough to maintain the upward momentum, and what’s the upside potential?
Sonic Expected Launch
In 2019, the Opera network was launched as a groundbreaking DAG-based blockchain, significantly improving scalability and finality compared to Ethereum. Despite its success, including reaching over $10 billion in TVL, the network faced congestion issues during high demand.
To address this, the Fantom team has developed Sonic, a more scalable technology capable of processing 2,000 TPS with sub-second finality. Sonic will support L1 and L2 chains, introduce a decentralized bridge with Ethereum access, simplify staking, and encourage DeFi growth with liquid staking tokens. Future updates will include supersets and further performance enhancements, with Fantom aiming to relaunch as a community-driven brand.
Fantom’s new Sonic network is expected to launch in late summer or early fall of 2024
Migration Drives Demand For FTM
The launch of the Sonic network is expected to increase demand for the FTM token for several key reasons:
- Enhanced Network Utility: Sonic’s improved scalability and sub-second finality will attract more decentralized applications (dApps) and users to the network, increasing the overall transaction volume. As FTM is used to pay for gas fees, this higher activity will drive demand for the token.
- Staking and Liquid Staking: Sonic will introduce simplified staking mechanisms with a 14-day unbonding period, unlocking over $1 billion in opportunities for liquid staking tokens (LSTs). This will encourage more users to stake FTM to secure the network, thereby reducing the circulating supply and increasing demand.
- DeFi Expansion: Introducing a canonical stablecoin on Opera and Sonic will likely boost DeFi activity. As more liquidity and decentralized finance projects develop on Fantom, the FTM token will see increased utility as the primary medium for interacting with DeFi protocols.
- Developer Incentives: The Sonic Labs Innovator Fund, which includes $120 million in FTM tokens, will support developers in building new applications and infrastructure. This will create more use cases for the FTM token, as these projects require the token for fees and staking.
Overall, the increased utility, staking opportunities, and expanded DeFi ecosystem will likely drive demand for FTM as Sonic goes live.
FTM Price Analysis
Fantom began a new bullish cycle after hitting a low of $0.17 on Oct. 18, 2023, and surged to a yearly high of $1.20 by March 22. However, this rally followed a sharp 55% decline, bringing the price down to $0.56 by April 13. After a 70% recovery, reaching $0.97 on May 21, another downtrend led to a low of $0.26 on Aug. 5.
The price action suggests a three-wave corrective phase after an initial five-wave upward movement. The asset started moving upward and finally broke out from the descending triangle, confirming a new bull cycle.
This is further highlighted by today’s peak surpassing its previous high, and considering that FTM is still moving upward, there is more upside room. The next significant resistance is around $0.70, the next likely target. However, if a new bullish phase begins, FTM should rise, regaining values above $1 in the coming months.
