Thursday, April 22, 2021

3 reasons why Fantom (FTM) price continues to rally to new all-time highs

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Interoperability has emerged as the recent subject in February as platforms like Binance Sensible Chain and Polkadot work on constructing Ethereum community bridges that enable customers to flee excessive transaction prices and community congestion.

Fantom (FTM) is the most recent mission to obtain a lift by providing cross-chain performance with Ethereum, and information from Cointelegraph Markets and TradingView reveals a 1,570% improve in FTM value from $0.025 on Jan. 23 to a brand new excessive of $0.43 on Feb. 21.

FTM/USDT 4-hour chart. Supply: TradingView

Three elementary causes for Fantom’s present rally are the discharge of a cross-chain bridge between Ethereum and Fantom, the roll-out of on-chain governance options and the flexibility to stake tokens on the community whereas nonetheless accessing their worth to be used within the decentralized finance ecosystem.

Yearn.finance helps facilitate a cross-chain bridge to Ethereum

On Feb. 21, Fantom, with the assistance of Andre Cronje of Yearn.finance, announced the event of a cross-chain bridge with Ethereum that enables customers to switch ERC-20 tokens to Fantom to “take pleasure in quick and low cost transactions.”

In accordance with the crew, transactions on Fantom “are confirmed in 1-2 seconds” and “price a fraction of a cent.” The crew additionally promised that cross-chain performance with different chains will probably be quickly to observe.

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VORTECS™ information from Cointelegraph Markets Pro started to detect a bullish outlook for FTM on Feb. 21, previous to the latest value rise.

The VORTECS™ rating, unique to Cointelegraph, is an algorithmic comparability of historic and present market circumstances derived from a mix of information factors together with market sentiment, buying and selling quantity, latest value actions and Twitter exercise.

VORTECS™ rating (inexperienced) vs. FTM value. Supply: Cointelegraph Markets Pro

As seen on the chart above, the VORTECS™ rating for FTM reached a excessive of 82 on Feb. 16, a number of days earlier than the latest value rally started. On Feb. 17, Cronje posted a tweet mentioning the advantages of deploying new cross-chain belongings to Fantom. 

Cronje mentioned: 

Customers will not even know they’re on one other chain, issues will simply all of the sudden turn into low cost and quick.

At some point after the tweet, FTM value elevated from $0.154 to $0.218 and the altcoin surged once more on Feb. 19 because it rallied to a brand new 2021 excessive at $0.277.

VORTECS™ rating (inexperienced) vs. FTM value. Supply: Cointelegraph Markets Pro

The VORTECS™ rating for Fantom then proceeded to extend from a low of 56 on Feb. 19 to a excessive of 74 on Feb. 21, shortly earlier than the worth broke out to a brand new all-time excessive. 

On-chain governance boosts group involvement

One other one of many widespread themes of the present bull market is the flexibility of tokenholders to take part within the growth of the ecosystem through a governance mechanism.

On Jan. 12, the Fantom Basis unveiled the discharge of on-chain governance for the Fantom community, changing into one of many first chains to assist such functioning for a totally decentralized blockchain.

Via the governance mechanism, every FTM token equals one vote, and any tokenholder can submit a proposal on methods to enhance the ecosystem, in addition to vote on any pending proposal.

Proposal submissions price 100 FTM, which is burned through the operation, and voting prices a fraction of 1 FTM.

The Fantom voting system differs from different governance platforms, because it gives a wide range of proposal templates and the flexibility to specific the diploma of settlement with the proposal versus casting a easy “sure” or “no” vote.

Fantom plans to combine staking and DeFi options

A 3rd motivating issue behind the latest value rise of FTM is the introduction of liquid staking, or the flexibility to stake tokens on the community and concurrently entry the worth of the token to be used in DeFi.

On most proof-of-stake networks, tokenholders have to decide on between staking their tokens to safe the community and earn rewards or quit these rewards to entry the worth of the token as collateral or for buying and selling functions.

FTM holders are in a position to stake their tokens on the community and mint an equal quantity of sFTM, which might then be used as collateral on the Fantom Finance DeFi platform.

Offering tokenholders with an additional option to earn a yield has proved to be a beautiful incentive, and after FTM was listed on SushiSwap and 1inch on Jan. 25, its value exploded from $0.05 to $0.26 over the following three days.

Since then, FTM has been added to Coinbase Custody and the Ledger {hardware} pockets, in addition to being chosen by the Ministry of Digital Transformation of Ukraine because the platform for the change of mental property.

Every of those developments helps the sturdy breakout in FTM value, and the upcoming public launch of its Ethereum cross-chain bridge has positioned Fantom in a great place to obtain a brand new stage of DeFi engagement. Moreover, the prospect of transaction charges that price lower than $0.01 could show to be an attractive incentive for crypto merchants and will result in liquidity migration. 

The views and opinions expressed listed here are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails danger, you need to conduct your individual analysis when making a choice.