A flurry of fundamental and Fantom ecosystem updates fuelling the rally
Sellers took over the FTM rally on overbought concerns
JAIPUR (Coinchapter.com) – Fantom’s native blockchain asset FTM resumed its uptrend on Tuesday with a near-vertical jump to a new all-time high of $1.75. The FTM/USDT pair logged 34% gains in the rally, rising from lows near $1.18 during Monday’s noon trading session. Key platform developments led to FTM’s bullish momentum.
These include launching the $370 million FTM incentive program, DeFi protocols on Fantom, hitting $1.2 billion in total value locked (TVL). Plus, Coinbase wallet’s support for Fantom’s mainnet, the announcement of the first Fantom Devcon, and Yearn Finance creator Andre Cronje launching Rarity (read the core of a game).
$370 Million FTM Incentive Program
Fantom is a public, EVM-compatible blockchain with smart contract functionality. The network’s aBFT consensus mechanism drastically lowered transaction fees and confirmation times, attracting prominent projects such as Curve Finance, SushiSwap, Cream Finance, etc.
To boost Fantom’s DeFi ecosystem, the foundation announced a total of 370 million FTM tokens as incentives for protocols.
The total value of the funds locked on Fantom’s native DeFi’s protocols pushed north of $1.2 billion throughout August. Plus, unique Fantom addresses went up by 68% to 485,000, with users engaging in 12 million transactions alone in August. A total of 12 million transactions took place in the last month, pulling the all-time transaction count to 52 million.
On September 1, cryptocurrency exchange heavyweight Coinbase announced support for the Fantom network on the Coinbase wallet. As a result, over a million Coinbase users would now interact with the Fantom network and access dapps (decentralized applications).
The Fantom also enabled support for the Coinbase wallet within the blockchain’s native fWallet for users to sync both wallets to avail of FTM rewards and staking opportunities.
First Fantom DevCon and Zero Ethereum Bridging Fees
Fantom’s Developer Conference will take place in Dubai from October 25 – 29, 2021. Speakers include Andre Cronje, Harry Yeh (Managing Director, Quantum Fintech Group), and Roger Ver.
Also, trustless blockchain bridging protocol, Anyswap waived off bridging fees for token transfer from Ethereum to Fantom. As a result, bridge users would only need to pay Ethereum gas fees. Reverse bridge transactions from Fantom to Ethereum would, however, cost a minimum of 30 FTM tokens.
The Loot’s success inspired Fantom’s Technical Adviser and Yearn Finance founder Andre Cronje to launch Rarity, a game core with composable NFT architecture. The reason Andre leveraged the Fantom blockchain for Rarity goes to low transaction costs.
The latest leg of the FTM/USD rally can be largely attributed to this crucial development.
While explaining the design behind Rarity, Andre pointed at how there is a “summoner NFT” containing “class, XP amount, and level at the very foundation.” The said features would grow through time.
Along with summoner NFTs, Rarity contains Attributes that build on top of the summoner NFT. Individual building blocks such as “skills,” “economy,” “feats,” etc., make up for the third aspect.
“So why not combine all the above into 1 NFT? For one, complexity, and two, composability…”
In Overbought Zone And Under Selling Pressure
While bulls continued playing the long game under the influence of the above pointers, sellers interfered in between dragging prices down by 12.5% from $1.75 to $1.53. Since FTM/USDT is trading in the overbought territory, the downside pressure could continue.
Relative strength index (RSI) soared to 81.28 before retreating to 75.82, which indicates that a correction is around the corner. Buyers looking to enter new positions should look ahead for a drop towards $1.48 and $1.38. In the worst-case scenario, the FTM/USDT pair risks retesting the support at $1.23 (lower trendline of the Ascending Channel pattern.)
Himadri is an active investor in cryptocurrencies and upcoming blockchain technology projects. He has been a part of the digital asset space since 2017 and has held multiple positions as Social Media Manager, Assistant Editor, Sponsored Content Manager, Cryptocurrency Journalist roles in reputed news outlets like NewsBTC, Bitcoinist and CryptoPotato. He has also helped numerous blockchain projects gain prominence through terse and succinct marketing/technical content. Himadri comes with a marketing and engineering background, and has worked with reputed names such as GE Healthcare, Volvo Trucks and Polycom before moving into crypto.