The leading altcoin project Fantom‘s mainnet asset FTM token gained 13% value in the last 7 days and made a notable rise by performing better than the general cryptocurrency market as seen from many indices. This rise in FTM’s price occurred as investors positively reacted to the ongoing Sonic update of the Fantom Blockchain network and the significant increase in the total value locked (TVL) in its decentralized applications (dApps).
Showing Strength Against the General Market Trend
Currently, the performance of the FTM token is notable, reaching approximately $0.81 with a 13% increase in the last seven days. In contrast, the index measuring the performance of the top 20 cryptocurrencies indicates only a 1.5% rise in the same period. This situation is considered a sign of a certain bullish expectation towards Fantom due to recent developments in its ecosystem.
One of the main driving forces behind this positive market sentiment for Fantom’s main asset is the Sonic update that the Fantom Foundation has been implementing over the past few weeks. The Sonic update aims to significantly increase the transaction speeds of the Blockchain network, targeting 2,000 transactions per second (TPS) with a finality of 1.1 seconds. This represents a significant improvement over the current rate of just over 2.5 TPS observed last month.
Following the update process, a progress chart shows that currently 25 out of 60 nodes have completed compatibility with the Sonic update, and the Blockchain network will officially transition to the new version once two-thirds of the nodes adopt the new update.
Increase in Fantom’s TVL
Another factor contributing to FTM’s rise is the increase in the TVL of the Fantom protocol. DeFiLlama shows that Fantom’s TVL rose from $111 million to $203 million on May 16, just two days ago. This increase is attributed to a broad rise in TVL across various decentralized exchanges, lending applications, yield aggregators, and other dApps supporting the Fantom Blockchain.
The combined effect of the Sonic update and the TVL increase has boosted investors’ confidence in the potential of the altcoin. Many dApps on the Fantom network saw their TVLs increase by 10% – 20% last week, reflecting the growing usage and adoption of the network’s decentralized services. This increase in TVL indicates that more capital is being locked into the ecosystem, showing increased confidence and interest from both investors and users.
Overall, Fantom’s better performance compared to the rest of the cryptocurrency market is a result of specific factors that have increased interest in the altcoin. Currently, the developments and growing ecosystem in Fantom’s network position it as a standout player in the cryptocurrency market. If the Sonic update is successfully implemented, TVL growth continues, and the network continues to deliver on its technological promises, it seems likely to maintain this momentum.
