After a sharp 2,000% increase in early 2021, the Phantom (FTM) price collapsed alongside many altcoins and even though the blockchain has glorious capabilities, it has yet to find mass adoption due to the lack of a compelling use case. FTM prices peaked at $ 3.46, only to collapse to a minimum for the $ 0.25 market after a failure in the Solidly DeFi project and the departure of developer Andre Cronje.
Data from Cointelegraph Markets Pro and TradingView show that since it dropped to $ 0.238, the FTM has risen 119.23% to $ 0.5216 on May 23rd.
Three reasons for the rise in FTM prices include the introduction of the first native stablecoin on the Fantom network, new protocol updates and announcements of collaborations bringing new online activity, and speculation that Andre Cronje is working on distributed finance protocols ( DeFi) on Phantom.
Fantom introduces its first native stablecoin
A notable development that has taken place in the Phantom ecosystem in recent weeks was the release of fUSD, the first online stablecoin online.
The introduction of fUSD follows the collapse of TerraUSD and looks set to cover part of the capital flight from algorithmic stablecoina by offering over-mortgaged alternatives.
On May 20, the Fantom Foundation released update which describes the maximum insurance coefficient and currency ceiling for each supported form of insurance. The agency also set the fUSD mortgage at 11.3%
The update also included information on the Fantom liquidity ratio, set a global maximum of 150 million Fantom (sFTM), removes the certifier for the list of those eligible for the sFTM currency and sets the FTM loan-to-value ratio (LTV) at 90% for the purpose of sFTM coin minting.
New collaboration improves attitudes towards FTM
Several recent protocols and new partnerships have also helped boost Phantom’s momentum, including the introduction of Snapsync, which allows new nodes to enter the web quickly.
With the integration of Snapsync, the time it takes for new nodes to synchronize could be reduced from 24 hours to 7 hours and will help increase network reliability, improve flexibility and create more distribution.
Fantom has also announced that it is now in the process of putting Gitcoin on the Fantom network to simplify the process of getting funding to evolve in the Fantom ecosystem.
Fantom also partnered with Unmarshal and XP.Network. Unmarshal is a Web3 infrastructure provider that will integrate its classification service with the Fantom protocol to provide developers with easy access to structured and granular data on a chain.
Through the partnership with XP.Network, Phantom users will be able to bridge inflexible tokens (NFT) between Ethereum (ETH), BNB Smart Chain (BNB), Elrond (EGLD), Aurora (AURORA), Tron (TRX), Avalanche (AVAX) and Velas (VLX).
Connected: Cryptocurrencies must have cash magic without controlled restrictions – Jeremy Allaire
Did Andre Cronje come back?
Another factor, albeit speculative, that raises FTM prices is speculation that well-known DeFi developer Andre Cronje could contribute to the DeFi development of the Phantom network.
Amid rumors of the return of leading DeFi developer Andre Cronje, the price of the native FTM symbol has risen by almost 40%. Cronje proposed a number of measures aimed at stabilizing the situation and increasing the sustainability of the Phantom ecosystem as a whole.
– Ashley Torres (@torresamba) May 23, 2022
Speculation began when Cronje submitted a fUSD optimization proposal on May 20 that is designed to solve a major depegging problem with stablecoin. It is estimated that Cronje’s Phantom wallet has also added more than 100 million FTM over the past two weeks.
VORTECS data from Cointelegraph Markets Pro began to forecast a good outlook for the FTM on May 20, ahead of a recent price increase.
The VORTECS ™ cut, for Cointelegraph only, is an algorithm comparison of historical and current market conditions derived from a combination of data points, including market attitudes, trading volume, recent price changes and Twitter activity.
As can be seen in the chart above, the VORTECS fyrir level for the FTM rose to a high of 89 on May 20, at the same time as its price began to rise by 62.3% over the next three days.
The views and opinions expressed herein are those of the authors only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading business involves risk, you should conduct your own research when making a decision.
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