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Fantom (FTM) is currently experiencing a strong bullish momentum, with rising predictions suggesting the coin could reach as high as $2. This price recovery is largely attributed to Fantom’s robust fundamentals, which have fostered a positive sentiment among investors.
What Is Driving The FTM Price Recovery?
Fantom’s recent price recovery is primarily driven by its solid fundamentals, particularly the upcoming launch of the Sonic network. In a recent blog post, Sonic Labs announced that Sonic’s launch is scheduled for November/December 2024. Investors view Fantom’s transition to Sonic as a bullish development, prompting increased investment in the FTM ecosystem ahead of the launch.
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According to the announcement, the layer-1 network Sonic will be EVM-compatible, which will allow decentralized applications (dApps) built on other EVM chains to integrate seamlessly into the network. Additionally, the network will provide a secure gateway to Ethereum through its layer-2 network. The post also mentioned that Sonic will offer the “fastest settlement layer for digital assets with over 10,000 TPS and one-second confirmation times for transactions” upon launch. This achievement is expected to set a new benchmark in the blockchain space, positioning Sonic ahead of its competitors.
Furthermore, following Sonic’s launch, there will be an airdrop event, bringing more liquidity into the Fantom ecosystem and further catalyzing the FTM price recovery. The Sonic Foundation plans to airdrop 190 million S tokens out of its 500 million treasury to Fantom users.
FTM holders will have the opportunity to swap their coins 1:1 for the S token, Sonic’s native token, when the new layer-1 network launches. Notably, the S token will not undergo any inflation for the first six months, ensuring that investors will not face a supply shock following Fantom’s transition to Sonic.
Other bullish factors contributing to the FTM price recovery include the involvement of Andre Cronje, Sonic Labs’ co-founder, who will develop new decentralized finance (DeFi) primitives. Additionally, 90% of gas fees will be returned to applications and developers, further boosting the ecosystem’s appeal.
The Charts Also Support Fantom’s Bullish Fundamentals
Crypto analyst Jagoilio has recently highlighted how the charts support the FTM price recovery, suggesting that the coin is poised to rise higher. He noted that Fantom has moved past its bearish trend and is now attempting to break its diagonal resistance. This indicates that the cryptocurrency is establishing a bullish market structure and aiming for a higher high.
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Jagoilio expects Fantom to experience a significant price rally in the fourth quarter, especially in light of the anticipated Fed rate cuts and the US presidential elections. He even suggested that FTM could outperform Bitcoin and Ethereum, asserting that Sonic will emerge as the leading layer-1 solution, surpassing Solana.
According to data from CoinMarketCap, FTM is currently trading at around $0.57, up over 9% in the last 24 hours.
Conclusion
In summary, Fantom (FTM) is experiencing a notable price recovery driven by strong fundamentals and the upcoming launch of the Sonic network. With the support of bullish chart patterns and positive investor sentiment, FTM appears well-positioned for further growth. As the cryptocurrency market continues to evolve, Fantom’s innovative developments and strategic moves could pave the way for significant advancements.
