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FTM’s Key Support At Risk As Fantom Launches Sonic Foundation And Wraps $10M Funding

The Fantom Foundation has recently disclosed its plans to establish the Sonic Foundation and Sonic Labs in preparation for the launch of its Sonic blockchain. 

In an announcement on Thursday, the foundation expressed its commitment to leveraging its technology and revealed additional details about the upcoming developments.

Fantom Introduces Sonic Chain

According to the foundation’s blog post, with the completion of the upgrade for their Opera chain on the horizon, Fantom is directing its focus towards creating a new “high-throughput” chain called Sonic (S). 

The introduction of the Sonic network will coincide with the establishment of the Sonic Foundation, which will assume responsibility for governance and treasury management functions. Additionally, Sonic Labs will spearhead the growth of decentralized applications (dApps), partnerships, and user engagement.

Developed under the guidance of Professor Bernhard Scholz, a virtual machine developer, and led by decentralized finance (DeFi) expert Andre Cronje, the Sonic chain represents a new type of Layer-1 platform with a native Layer-2 bridge connected to the Ethereum (ETH) network.

The Sonic chain is reportedly designed to serve as a Layer 1 solution connected to Ethereum via a Layer 2 bridge. This integration is intended to allow Sonic to leverage Ethereum’s liquidity, user base, and protocols. 

As a result, the network will combine the benefits of a Layer-1 platform, such as affordability, scalability, and speed, with the security of a Layer-2 bridge, providing access to native ETH and other assets on Ethereum. 

$10 Million Raised In Strategic Funding Round

Regarding the “S” token, a recent governance vote has secured compatibility and migration between the decentralized platform’s native token FTM and S on a 1:1 basis. 

Fantom also announced the successful completion of a $10 million strategic funding round led by Hashed, one of Korea’s cryptocurrency funds. This funding initiative for the foundation is expected to expand further in the coming months. 

In addition to Hashed, UOB Ventures, Signum Capital, and Aave (AVE) Foundation, along with angel investors Stani Kulechov, Robert Leshner, Michael Egorov, Fernando Martinelli, Tarun Chitra, and Sam Kazemian, and individual partners from UOB, have all provided support during the funding round.

The capital raised in the latest round of funding will be used exclusively to support strategic growth initiatives and ecosystem development within the Fantom network, according to the foundation’s statement, which concluded by saying:

Our team is steadfast in exploring how the Sonic chain can impact and elevate several different DeFi and real-world use cases. Industries and applications such as real-world assets, perpetual DEXs, payments, trading, and high-transaction-based games, can be transformed by the speed and high throughput of Sonic.

FTM Faces Potential Downtrend Continuation

Despite these developments, the FTM token has exhibited a lackluster response to the successful funding round and the potential benefits of the Sonic chain. 

As a result, the token has declined by over 4% within a 24-hour period, putting a significant level of support for the native token at risk.

Currently trading at $0.8033, the FTM token’s immediate prospects hinge on the crucial $0.7994 support level. A breach of this support could lead to further price declines, with the next major support at $0.755.

Fantom

On the other hand, if renewed bullish momentum and increased buying pressure emerge, the token may encounter resistance at the $0.844 and $0.8750 levels before potentially retesting the key $0.9 zone. Reclaiming the $1 milestone remains pivotal for the token’s overall outlook.

Featured image from Shutterstock, chart from TradingView.com

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Fantom (FTM) Bull Run: 8% Price Surge And Robust Double-Digit Growth In Key Metrics

Fantom (FTM), a Layer-1 (L1) protocol, and its native token, FTM, have experienced significant gains and notable achievements in the first quarter (Q1) of 2024. 

According to a comprehensive performance analysis conducted by Messari, amid the emerging crypto bull market, Fantom has emerged as one of the major beneficiaries, showing significant growth in key metrics and market capitalization. 

FTM Market Cap Soars 101% QoQ

By the numbers, FTM’s circulating market capitalization saw a substantial 101% quarter-over-quarter (QoQ) increase, jumping from $1.3 billion to $2.6 billion, vaulting it up ten spots to 48th among all tokens (currently 58th). The token’s rally extended for two consecutive quarters, resulting in a fourfold increase since the end of Q3 2023.

Fantom

Although Fantom experienced a decrease of 53% QoQ in revenue measured in FTM, amounting to 1.8 million FTM, revenue denominated in USD exhibited a 4% QoQ increase, reaching $1.2 million. 

According to Messari, the revenue decline was primarily due to reduced inscription activity across all smart contract platforms in Q1. 

Despite this, Fantom maintained an upward trend in average daily transactions, excluding inscription-related activity, surpassing the Q3 average and reaching 247,000 daily transactions. Daily active addresses also rebounded, rising by 24% QoQ to 40,500.

In Q1, the staking requirement for Fantom validators was significantly reduced from 500,000 FTM to 50,000 FTM, aiming to increase accessibility. However, the number of active validators remained unchanged at 55. 

Notably, the total amount of FTM staked increased by 17% QoQ, from 1.1 billion to 1.3 billion FTM, resulting in a 135% QoQ surge in the total dollar value of staked FTM, reaching $1.2 billion. Among proof-of-stake (PoS) networks, Fantom ranked 22nd in the dollar value of funds staked by the end of Q1.

Memecoin Mania Boosts Fantom On-Chain Activity

During the year’s first quarter, Total Value Locked (TVL) denominated in USD experienced a substantial 59% QoQ increase, rising from $810.8 million in Q4 to $1.28 billion. 

Conversely, TVL-denominated in FTM decreased by 21% QoQ, indicating that the surge in USD-denominated TVL was partly attributed to FTM’s price appreciation.

Fantom’s average daily decentralized exchange (DEX) volume surged by 64% QoQ, from $10.2 million to nearly $176.8 million. In Q1, the “Memecoin Mania” trend contributed to elevated on-chain activity across various networks, including Fantom.

Fantom

Fantom’s monthly DEX volume surpassed $1 billion in March, marking the first time since March 2023. The number of DEXs on Fantom increased to 31 by the end of Q1, with no single DEX dominating more than 30% of the market share.

Lastly, following an exploit in the Multichain: Fantom Bridge, which affected stablecoins on Fantom in Q3 2023, the Fantom Foundation took steps to increase the liquidity of stablecoins. 

As of Q1 2024, two independent third-party bridging solutions, Axelar (axlUSDC and axlUSDT) and LayerZero (lzUSDC and lzUSDT), have emerged. USDC remains the predominant stablecoin on Fantom, accounting for 98% of the stablecoin market cap. USDT also experienced considerable growth, with an 86% QoQ increase.

Fantom

The FTM token is currently trading at $0.7037, reflecting an 8.7% increase in price over the past seven days. However, it has experienced a decline of nearly 20% in the monthly time frame.

Featured image from Shutterstock, chart from TradingView.com

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Fantom Launches Recovery Plan For Funds Lost In Multichain’s $200M Exploit, FTM Soars

The Fantom (FTM) Foundation has taken decisive steps to recover assets lost in the Multichain exploit that devastated various chains, including its own, resulting in a staggering $210 million loss.

After failed attempts to engage with the Multichain Foundation, the Protocol has announced that it filed a lawsuit for “breach of contract” and “fraudulent misrepresentations.” 

Fantom Foundation Takes Legal Action Against Multichain

The exploit, which occurred in July 2023, targeted the Multichain bridge and affected multiple chains, including Fantom, Ethereum (ETH), Binance’s BNB, Cronos (CRO), Polygon (MATIC), Arbitrum (ARB), zkSync, Optimism (OP), and Moonbeam (GLMR). 

Fantom’s ecosystems suffered losses of approximately one-third of the total damage. In addition, the Fantom Foundation claims that the recovery process has faced numerous challenges due to legal complexities, jurisdictional issues, uncooperative former directors, and ongoing police investigations.

To pursue justice, the Fantom Foundation initiated several measures. They filed a police report in Singapore, where the Multichain Foundation is incorporated, and in Kunming, China, where Multichain and its founder are under investigation. 

Legal counsel was engaged in the United States, China, Hong Kong, and Singapore to navigate the diverse jurisdictions involved. Additionally, Fantom partnered with the blockchain intelligence firm TRM Labs to conduct a comprehensive forensic analysis of the asset flow. As a decisive move, legal action against the Multichain Foundation for losses incurred by Fantom was commenced in Singapore.

Empowered To Liquidate Multichain

The Fantom Foundation has also disclosed that a recent default ruling by Judge Tan Boon Heng of the General Division of the High Court of Singapore has ruled in favor of the Protocol’s claim.

According to the foundation’s blog post, the ruling paves the way for the protocol to petition the court to dissolve the Multichain Foundation and appoint a court-appointed liquidator.

The liquidator, equipped with specialized expertise, legal powers, and authority to act on behalf of Multichain, will reportedly assist in the tracing, recovering, and distributing of missing or frozen assets.

However, it is worth noting that while the current ruling addresses explicitly the Fantom Foundation’s losses, it sets an important precedent for all affected users to pursue their claims against Multichain.

Ultimately, the Foundation intends to use this legal victory to facilitate the appointment of “suitably qualified” experts to recover and distribute assets on behalf of all creditors. This milestone marks a significant step forward in the ongoing legal saga and underscores the team’s approach to righting the wrongs caused by the exploit.

Riding The Bull Market

Despite the ongoing legal battle faced by the protocol, its native token, FTM, has experienced significant gains across all time frames, taking advantage of the current bullish sentiment in the overall market.

In the year-to-date period, the FTM token has recorded a remarkable increase of 67%, followed by gains of over 92% in the past thirty days. Furthermore, in the past seven and fourteen days alone, the token has seen gains of 50% and 57%, respectively.

Fantom

This continuous upward trend propelled FTM to reach a 20-month high of $0.751 on Monday. However, it has since retraced and is trading for $0.681, with a modest recovery of 1.8% in the past few hours.

Featured image from Shutterstock, chart from TradingView.com

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Q4 Triumph For Fantom (FTM): Circulating Market Cap Outpaces All Cryptos With 140% Surge

In the fourth quarter of 2023, the cryptocurrency market experienced a notable resurgence, accompanied by the anticipation of a potential Bitcoin ETF approval. Among the standout performers during this period was Fantom (FTM), a Layer-1 protocol launched in 2018. 

According to a recent report by Messari, Fantom witnessed significant growth, with its circulating market cap soaring by 140% quarter-over-quarter, from $0.5 billion to $1.3 billion.

This performance surpassed all cryptocurrencies’ overall market cap growth at 54% in Q4. Additionally, Fantom climbed up the market cap rankings, ascending five spots from 63 to 58 by the end of the quarter.

FTM’s Potential For Future Growth

The circulating supply of FTM remained relatively stable quarter-over-quarter, with changes in supply dynamics between Q4 2022 and Q1 2023. 

Notably, Fantom introduced the Ecosystem Vault and Gas Monetization program during Q4 2023, reducing the burn rate of transaction fees and reallocating a portion of fees to the Gas Monetization program and Ecosystem Vault. 

The number of daily active addresses on the Fantom network experienced a 27% decline quarter-over-quarter, averaging 32,700 in Q4’23. However, a steady increase in daily active addresses throughout December indicates potential future growth as the crypto market emerges from the bearish phase. 

Average daily transactions on Fantom reversed their declining trend, surging by 126% to 531,000. This increase was primarily attributed to the emergence of Fantom Inscription FRC20s, with November 25 marking an all-time high of 5.11 million transactions, including 4.99 million inscriptions. 

Fantom

In terms of new addresses, Q4’23 saw a 10% increase to an average of 21,100 daily new addresses. Messari suggests that the surge in daily new addresses can be attributed to the launch of Estfor Kingdom, a popular blockchain-based game on Fantom that gained traction in late Q3’23. December also witnessed an uptick in daily new addresses, likely influenced by improved market conditions.

Fantom DeFi Ecosystem 

Per the report, Fantom’s Total Value Locked (TVL) denominated in USD increased by 58% quarter-over-quarter, from $51 million in Q3 to $81 million in Q4. However, TVL denominated in FTM decreased by 29% in the same period, primarily due to asset price fluctuations. 

Q4’23 also witnessed shifts in the top DeFi applications on Fantom, with new entrants such as Equalizer Exchange, WigoSwap, and SpiritSwap gaining market share. Notable protocols by TVL included Spookyswap, Beethoven X, Equalizer Exchange, WigoSwap, Tomb Finance, and SpiritSwap. 

Fantom

These protocols collectively gained $29 million in TVL, accounting for nearly 100% of Fantom’s TVL growth in Q4. Equalizer and WigoSwap experienced the most significant market share increases.

The average daily decentralized exchange (DEX) volume on Fantom declined by 10% to $10.2 million in Q4 2023. Still, emerging new DEXs like Equalizer Exchange and WigoSwap contributed to the ecosystem’s overall growth.

In summary, Fantom’s performance was notable in the fourth quarter of 2023. The protocol experienced a surge in market cap, robust revenue growth, and an expanding DeFi ecosystem. However, its native token has declined significantly. 

Fantom

Despite the recent sharp correction across the cryptocurrency market, Fantom’s native token FTM has not been an exception. Presently, the token is trading at $0.3306, reflecting a decline of over 3% within the last 24 hours, 37% over the past 30 days, and a year-to-date decrease of 18%.

Featured image from Shutterstock, chart from TradingView.com

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Bullish Trend Ahead: Fantom (FTM) Rise Signals Potential For Powerful Rally Towards $0.65

Fantom (FTM) has recently displayed remarkable performance, surpassing several leading digital assets such as Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB) among others. 

Over the past 24 hours, FTM has experienced a notable surge of 9%, propelling its price to the $0.4950 level. This upward momentum has sparked optimism within the market, with the potential to drive FTM towards its yearly high of $0.65.

Fantom Poised For Upward Surge?

Crypto analyst Ali Martinez has shared insights into the promising outlook for Fantom. Martinez emphasizes that FTM trading above the critical resistance level of $0.47 signifies a significant bullish turning point. 

Furthermore, the analyst notes that there are no major obstacles in sight until the $0.65 level. As long as FTM remains above this crucial level, Martinez predicts a strong rally for the token.

Fantom

With FTM’s breakthrough above the $0.47 resistance level, the stage is set for further gains. The absence of significant barriers until the $0.65 mark provides an encouraging backdrop for FTM’s potential upward trajectory. 

Analyst Ali Martinez’s assessment reinforces the belief that as long as FTM maintains its position above $0.47, investors should prepare for a robust rally in the token’s price.

Social Media Buzz Surrounding FTM

In recent weeks, Layer 1 (L1) blockchain protocols have taken center stage in the cryptocurrency community. Tokens such as Injective (INJ), Kaspa (KAS), Avalanche (AVAX), and Solana (SOL) have outperformed major cryptocurrencies. 

However, amid this L1 surge, Alpha Scan highlights that Fantom has emerged with impressive sentiment strength, capturing the attention of market participants and further bolstering the protocol’s native token price surge.

According to a recent post on X (formerly Twitter) by the sentiment analytics firm, an analysis of social media conversations reveals that a staggering 61% of all monthly mentions of FTM have occurred within the last seven days. 

Fantom

This sudden surge in mentions commenced on December 9th, indicating a heightened interest and positive sentiment surrounding the token.

Over the past 30 days, 28 key accounts have actively discussed FTM, further emphasizing its growing significance. 

Notably, 20 of these key accounts have specifically highlighted FTM within the last seven days, reflecting a heightened level of attention and engagement within a relatively short period. This ratio of key account engagement during the past week indicates a distinct rise in interest and potential market influence.

Annualized Increase Reinforces Positive Outlook

According to Token Terminal data, in addition to the social media buzz surrounding the protocol and its native token, Fantom’s market capitalization has reached approximately $1.38 billion, with a remarkable increase of 18.47%. This surge reflects the growing demand for FTM and its expanding market presence. 

In terms of revenue, the token has witnessed substantial growth, with a 30-day revenue increase of 734.11% to $171.73k. Moreover, the annualized revenue has surged to $2.09 million, representing a significant rise of 813.75%. 

Moreover, Fantom’s fully diluted market capitalization stands at around $1.57 billion, indicating a substantial increase of 43.39%. This growth further reinforces the market’s confidence in the protocol’s prospects. 

When considering performance ratios, the P/F ratio (fully diluted) is calculated at 203.80x, while the P/S ratio (fully diluted) is reported at 679.33x. Although both ratios have dipped by 82.8%, they still suggest a strong valuation for Fantom relative to its performance.

Featured image from Shutterstock, chart from TradingView.com