Staking Made More Accessible, Token in Downtrend

The Fantom blockchain network has lately experienced a significant change in its staking system to achieve lesser decentralization. The Fantom Foundation reduced the validator staking demand from 500,000 FTM to 50,000 FTM commemoratives on January 15.

This reduction came as a result of a governance vote. The Foundation stated that having more validators is pivotal for any decentralized network. The addition of further validators also makes it more difficult for vicious users to launch an attack.

In addition, with more validators to choose from, deals will be reused by a validator much faster. The Foundation believes that having more validators won’t decelerate down the network.

Smaller validators who can now participate with just 50,000 FTM tokens will play a vital role in the ecosystem. However, this reduced amount is still a significant investment at current token prices, equating to approximately $19,500. Previously, validators had to invest ten times that amount to participate.

The power of a validator to confirm transactions is proportional to their stake amount and not the number of validators they run. This has been noted by the Foundation.

Technical Analysis & Prediction of FTM Coin Price 

FTM, the native token of the network, experienced a decline of 30.4% in its value since the end of December last month. FTM price is currently trading at $0.394 after the bullish investors took the 50-Day EMA for support.

Despite the staking reduction, FTM prices haven’t been impacted, and they are down by 88% from the all time high of $3.26 in October 2021. Fantom presently has a total value locked( TVL) of $74 Million in DeFi.

The support level for the FTM price is at $0.348 while the 2nd support is intact at $0.279 Moreover, the resistance level is currently at $0.4391 and if the bulls can break this then the next target price for the FTM price will be at $0.5564.

Summary

The Fantom blockchain network reduced its validator staking demand from 500,000 FTM to 50,000 FTM commemoratives to achieve lesser decentralization. Despite the staking reduction, FTM prices remain down by 88% from their all time high of$3.26 in October 2021. Currently, Fantom has a TVL of $74 Million in DeFi.

Technical Levels

• Support Levels: $0.348 and $0.279
• Resistance Levels: $0.439 and $0.556

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.