Fantom (FTM) is enjoying bullish momentum at the moment, and the chances of the coin rising to $2 have increased. The FTM price rally is due to Fantom fundamentalswhich sparked positive sentiment among investors.
What’s Driving the FTM Price Recovery
Fantom’s price rally is primarily driven by its bullish fundamentals, especially the imminent launch of the Sonic chain. In a recent blog post, Sonic Labs announced that Sonic is scheduled to launch in November/December 2024. Investors consider The transition from Fantom to Sonic optimistic, which explains why they are investing in the FTM ecosystem ahead of launch.
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According to the announcement, the Sonic Layer 1 Network will be EVM-compatible, allowing decentralized applications (dApps) built on other EVM chains to be easily integrated into the network. The network will provide a secure gateway for Ethereum through its layer 2 network.
The post also stated that Sonic will provide the “fastest settlement layer for digital assets with over 10,000 TPS and one-second confirmation times for transactions” upon launch. This feat will set a new standard in the blockchain space and put Sonic ahead of its competitors.
Meanwhile, an airdrop will follow the Sonic launch, which will cause more liquidity to flow into the Fantom ecosystem and further trigger the FTM price rally. The Sonic Foundation will airdrop 190 million S tokens from its 500 million treasury to Ghost users.
It is worth noting that FTM holders can exchange their coins 1:1 for Sonic’s native token S token upon the launch of the new layer-1 network. Meanwhile, S token will not experience any inflation in the first six months, which is positive as investors can rest assured that there will be no supply shock after the transition from Fantom to Sonic.
Other bullish fundamentals triggering FTM price recovery include the fact that Sonic Labs co-founder Andre Cronje will build new decentralized finance (DeFi) primitives, with 90% of gas spent returning to applications and developers.
Charts also support Fantom’s bullish fundamentals
Crypto Analyst Jagoilio recently featured as the charts support FTM price recovery, with the coin likely to rally further. He stated that Fantom has surpassed its downtrend and is now looking to break its diagonal resistance. He added that this presents the notion that the crypto is enforcing a bull market structure and seeking a higher high.
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The analyst expects Fantom to enjoy a major price recovery in the fourth quarter, especially after the Fed Rate Cuts and the US presidential elections. Jagoilio even stated that the FTM could outperform Bitcoin and Ethereum. He also stated that Sonic will become the ultimate layer 1 solution and will surpass Solana.
According to data from CoinMarketCap, FTM is trading at around $0.57 at the time of writing, up over 9% in the past 24 hours..
Featured image created with Dall.E, chart from Tradingview.com