The native token FTM of the layer-1 network Fantom has recorded an impressive performance in recent weeks: on October 2, 2024, the price of the crypto rose by 5% in seven days, reaching $0.6850.
This rise is part of a broader movement that began on September 6, which has seen the price of Fantom increase by over 71% in the last 30 days. This development has attracted the attention of investors and enthusiasts in the cryptocurrency sector, consolidating FTM as one of the most followed assets in the layer-1 blockchain landscape.
What is Fantom (FTM)? What has driven the price increase of the crypto?
Fantom is a layer-1 smart contract platform designed to provide a highly scalable, secure, and efficient infrastructure for decentralized applications (dApp).
Launched in 2018, the network stands out for the use of a unique consensus algorithm called Lachesis, based on a Directed Acyclic Graph (DAG) model. This approach allows Fantom to achieve high transaction speed and near-instant finality, making it an attractive option for developers and companies seeking high-performance blockchain solutions.
FTM is the native token of Fantom and is used to power transactions, pay fees on the network, participate in protocol governance, and secure the blockchain through staking.
Thanks to its versatility, FTM has seen a significant increase in interest and demand over time, leading to strong price movements, such as the one observed recently.
The recent increase in the price of FTM can be attributed to several fundamental and technical factors. Below are some of the main drivers that have fueled the growth of the token.
The factors related to the increase in the price of the crypto Fantom (FTM)
1. Renewed confidence in the bull market of cryptocurrencies
The cryptocurrency market, after a period of uncertainty, began to show signs of recovery starting from September 2024. Bitcoin (BTC) and other high-profile cryptocurrencies recorded significant gains, strengthening the positive sentiment of investors. This improvement in the overall climate likely contributed to the increase in the price of FTM, which benefited from the renewed confidence in the sector.
2. Technological innovations and updates of the Fantom network
Another key factor that has supported the growth of FTM has been the continuous development of the Fantom network. The platform’s developers have implemented significant updates aimed at further improving the scalability, security, and compatibility of the network with other blockchains.
In particular, the integration of tools that facilitate interoperability with Ethereum and other networks has made Fantom a more attractive platform for dApp developers and for those who wish to migrate from other blockchains.
3. Rise of DeFi and projects on Fantom
In recent months, Fantom has seen a significant increase in decentralized applications (dApp) and DeFi projects launched on its network. DeFi (decentralized finance) represents one of the main uses of blockchain, and the growth of this ecosystem on Fantom has contributed to increasing the demand for FTM.
Some of the most important DeFi protocols on Fantom, such as SpookySwap and Geist Finance, have attracted a growing number of users and liquidity, leading to an increase in network activity and, consequently, in the demand for FTM.
4. Improvement of the technical sentiment
From a technical standpoint, FTM has benefited from a strong rebound after hitting multi-month lows at the beginning of September. Technical analysts have highlighted that the price of FTM had reached an oversold level, creating the conditions for a natural rebound.
FTM Price Forecast: What to Expect in the Future?
With the price of FTM having seen an increase of 71% in the last 30 days, many investors are wondering if this trend can continue. Although it is difficult to accurately predict the future performance of such a volatile asset as FTM, there are some signals indicating a potential further bull, at least in the short term.
1. Continuous development and growing adoption
One of the key factors that could further support the price of FTM is the continuous development of the network and the growing adoption of dApps and DeFi projects on Fantom. If the platform manages to maintain its innovative momentum and expand its ecosystem, the demand for FTM could continue to increase, supporting the price.
2. Favorable macroeconomic conditions
The global macroeconomic conditions, including a potential reduction in interest rates by central banks and an improvement in the general sentiment towards cryptocurrencies, could offer a favorable context for the crypto market as a whole. If the general cryptocurrency market continues to regain ground, FTM could benefit further from it.
3. Risks and uncertainties
Despite the positive aspects, it is important to recognize that the cryptocurrency market is highly volatile and subject to rapid changes. Future regulations, investor sentiment, and potential technological risks all represent elements of uncertainty for FTM and the entire crypto ecosystem.
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Conclusions
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Fantom (FTM) has demonstrated impressive growth, with the price rising by 5% in a week and 71% in the last 30 days. This bull run has been supported by technical factors, an improvement in the overall crypto market conditions, and the growing adoption of the Fantom network.
While the signals for the future of FTM are promising, investors should also consider the risks associated with a constantly evolving and highly volatile market.
