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Friday, December 9, 2022

fUSD stablecoin launch and rumors of Cronje’s return send Fantom (FTM) price higher

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After a powerful 2,000% rally in early 2021, Fantom (FTM) price collapsed alongside a number of altcoins and though the blockchain has a powerful functionality, it has but to seek out mass adoption because of the lack of a compelling use case. FTM price hit an all-time excessive at $3.46, solely to break down to its pre-bull market lows below $0.25 after the failure of the Solidly DeFi venture and the departure of developer Andre Cronje.  

Data from Cointelegraph Markets Pro and TradingView exhibits that since dropping to $0.238, FTM has rallied 119.23% to $0.5216 on May 23.

FTM/USDT 4-hour chart. Source: TradingView

Three causes for the uptrend in FTM price are the launch of the primary native stablecoin on the Fantom community, new protocol upgrades and partnership bulletins, which convey new performance to the community, and hypothesis that Andre Cronje is working with decentralized finance (DeFi) protocols on Fantom.

Fantom launches its first native stablecoin

The most notable growth to happen within the Fantom ecosystem up to now few weeks was the discharge of fUSD, the primary native stablecoin on the community.

The launch of fUSD comes on the heels of the collapse of TerraUSD and appears to seize some of the capital flight from algorithmic stablecoin by providing an over-collateralized various.

On May 20, the Fantom Foundation released an replace outlining the utmost collateral issue and minting cap for every supported type of collateral. The basis additionally set the fUSD staking reward at 11.3%

The replace additionally included particulars on Fantom liquid staking, setting a worldwide cap of 150 million staked Fantom (sFTM), eradicating validators for the listing of these eligible to mint sFTM and setting a loan-to-value (LTV) ratio of FTM at 90% for the needs of minting sFTM.

New partnerships enhance sentiment for FTM

A handful of latest protocol updates and new partnerships have additionally helped to convey a lift in momentum to Fantom, together with the launch of Snapsync, which permits new nodes to shortly be part of the community.

With the combination of Snapsync, the time it takes for brand new nodes to synch could possibly be lowered from 24 to seven hours, serving to to reinforce community reliability, enhance scalability and create a higher diploma of decentralization.

Fantom has additionally introduced that it’s at present within the course of of launching Gitcoin on the Fantom community to simplify the method of acquiring grants to develop within the Fantom ecosystem.

Fantom additionally partnered with Unmarshal and XP.Network. Unmarshal is a Web3 infrastructure supplier that may combine its indexing companies with the Fantom protocol to provide builders quick access to organized and granular on-chain information.

Through the partnership with XP.Network, Fantom customers will be capable of bridge nonfungible tokens (NFTs) between Ethereum (ETH), BNB Smart Chain (BNB), Elrond (EGLD), Aurora (AURORA), Tron (TRX), Avalanche (AVAX) and Velas (VLX).

Related: Crypto remittances must have allure of cash without regulatory constraints — Jeremy Allaire

Did Andre Cronje return?

Another issue, albeit speculative, bringing a lift FTM price is concept that well-known DeFi developer Andre Cronje could possibly be contributing towards DeFi growth on the Fantom community.

The hypothesis began when Cronje submitted an fUSD optimization proposal that designed to unravel a significant depegging problem with the stablecoin on May 20 . A Fantom pockets that’s believed to belong to Cronje has additionally added greater than 100 million FTM over the previous two weeks.

VORTECS™ information from Cointelegraph Markets Pro started to detect a bullish outlook for FTM on May 20, previous to the latest price rise.

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

VORTECS™ Score (inexperienced) vs. FTM price. Source: Cointelegraph Markets Pro

As seen within the chart above, the VORTECS™ Score for FTM spiked to a excessive of 89 on May 20 similtaneously its price started to extend 62.3% over the subsequent three days.

The views and opinions expressed listed below are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Every funding and buying and selling transfer includes danger, it’s best to conduct your individual analysis when making a choice.