Fantom Token Rises 71% as Network Prepares for Sonic Upgrade

TLDR

• FTM price rose 71% in 30 days, reaching $0.6850 on October 2
• Upcoming Sonic upgrade expected to boost network performance to over 2,000 TPS
• Fantom Foundation rebranded to Sonic Labs, with plans to change token ticker from FTM to S
• Total Value Locked (TVL) in Fantom’s DeFi ecosystem increased 55% to $108.8 million
• Daily active addresses on Fantom blockchain grew 162% between September 1 and October 1

The cryptocurrency market has witnessed a notable surge in the price of Fantom (FTM), the native token of the Fantom layer-1 smart contract platform.

Over the past 30 days, FTM has experienced a remarkable 71% increase, reaching $0.6850 on October 2, 2024. This upward trend began on September 6, when the token was trading at $0.3574.

The primary catalyst behind this price movement appears to be the anticipation surrounding the upcoming Sonic upgrade, scheduled for implementation in November or December.

This upgrade promises to significantly enhance the network’s performance by introducing a new Fantom Virtual Machine (FVM), an optimized Lachesis consensus mechanism, and improved Carmen database storage.

Once implemented, the Sonic upgrade is expected to boost the Fantom blockchain’s transaction processing capabilities from the current 30 transactions per second (TPS) to over 2,000 TPS.

Additionally, the upgrade aims to reduce transaction finality time to approximately one second, marking a substantial improvement in overall network efficiency.

In preparation for these changes, the Fantom Foundation announced a rebranding to Sonic Labs on August 1. This rebranding effort extends to the native token itself, with plans to change the ticker from FTM to S by the end of 2024.

The transition to the new S token will involve a 1:1 migration ratio from FTM, a proposal that received community approval in May.

The upcoming S token is set to differ from FTM in several key aspects. These include an initial community distribution through an airdrop, streamlined staking processes, and the introduction of new user incentive programs.

These changes are designed to enhance user engagement and potentially drive further adoption of the platform.

The anticipation surrounding these upgrades has reignited investor interest in Fantom’s decentralized finance (DeFi) ecosystem.

Data from DefiLlama shows that the Total Value Locked (TVL) in Fantom’s DeFi applications has increased by 55% over the last month, reaching $108.8 million. While this figure represents significant growth, it’s worth noting that it remains far below the platform’s peak TVL of $7.93 billion recorded in March 2022.

The increase in TVL corresponds with a rise in user activity on the Fantom blockchain. Market intelligence firm Glassnode reports that the number of daily active addresses on the network grew by 162% between September 1 and October 1.

This metric is a key indicator of user engagement and typically correlates with increased demand for the native token.

Data from FTMScan reveals a 66% increase in daily transactions, rising from 217,487 to 361,345 month-to-date. This surge in network activity suggests growing adoption and usage of the Fantom platform.

The combination of these factors – the upcoming network upgrade, rebranding efforts, and increased user activity – has contributed to a notable uptick in FTM’s trading volumes.

On October 1, FTM’s spot trading volumes exceeded $450 million, marking a 77% increase over the previous seven days and an impressive 450% growth over the past 30 days.

As of the latest data, FTM’s market capitalization stands at $9.7 million, solidifying its position as the 46th largest cryptocurrency by market cap, according to CoinMarketCap.