Key Takeaways:
- Fantom launched Geist Finance protocol on Oct. 6.
- The latter boosted the Fantom TVL more than twice in 24 hours.
- FTM gained 35% and scored a new all-time high.
YEREVAN (CoinChapter.com) — FTM, the native token of Fantom, a smart contract platform, has gained over 35% in the previous two days. The digital asset spiked to $2.06, registering a new all-time high. Its price action slid back hours later and stood at $1.85 in the New York session Thursday.
The FTM rally surfaced in the wake of an overall boom across the crypto market. Meanwhile, its gains also took cues from the launch of Geist Finance, a lending and borrowing protocol, atop the main Factom chain on Oct 6.
FTM demand improves
The total value locked (TVL) inside the Geist’s liquidity pool surged to $2.15 billion, pushing Fantom’s TVL higher by 178%, in tandem. Additionally, Fantom’s smart contracts collected funds from AnySwap, a decentralized exchange (DEX) running atop its blockchain; its TVL surged 116% in the previous 24 hours.
The main reason behind the massive success of the Geist protocol was the GEIST token reward, which the protocol grants to lenders and borrowers through the liquidity mining program. Geist allocated 40% of its tokens on a “first come first serve” basis. As a result, first adopters earned a large portion of the rewards.
Furthermore, the DeFi protocol used a token incentive to attract more users. Geist will airdrop its token to AAVE holders. Fantom also committed FTM incentives to the protocol, meaning users who stake their GEIST tokens can earn FTM rewards.
All the active developments on the Fantom blockchain allowed FTM to rocket 35% and reach an all-time high.
Also read: Fantom’s FTM token surges by 34% amid key ecosystem developments
FTM daily chart
Before the recent rally, the FTM daily chart looked a lot like another “Ethereum-killer” Solana’s. However, the past two days gave FTM a confident uptrend. The digital asset retested a confluence of support before the take-off. FTM traded above its 20-day exponential moving average (EMA-20) and also relied on the $1.32 line for assistance.
The bullish price action also affected the relative strength index (RSI; purple graph at the bottom). The momentum indicator passed the value of 70. When the RSI gets above 70, traders might consider the asset overbought and wish to secure their gains by pulling back.
Also read: Bitcoin looks to pump higher as George Soros’ fund confirms holding BTC
