Fantom [FTM] Price Analysis: Sonic Network Mainnet Launch Could Rekindle On-Chain Activity and Propel Prices

The majority of cryptocurrencies were trading in the green on the 22nd of August, notwithstanding a slight retreat from late Wednesday’s prices. Fantom [FTM] has stood out among

The majority of cryptocurrencies were in the green on the 22nd of August, showing a slight retreat from late Wednesday’s prices. However, some coins, like Fantom [FTM], stood out with decent gains.

According to AMBCrypto’s analysis on TradingView, FTM printed a 15.64% daily green candle on the 21st of August and was on its way to completing a minor green candle.

Outside the market, Fantom has seen growing interest and user engagement, thanks to the ongoing rebranding, which will eventually see the network transitioning to a new identity. In May, the Fantom Foundation introduced the Sonic Foundation and Sonic Labs as the new entities associated with a new high-throughput chain, the Sonic Network.

Sonic Network will operate as a high-speed layer-1 chain with a native layer-2 bridge connecting to Ethereum [ETH], unlocking more liquidity. The launch of Sonic is expected to bring a new phase of growth for the ecosystem, given the network’s greater scalability and faster transaction speeds. Sonic Labs claims the new chain can process over 10,000 transactions per second (TPS), a vast improvement over the Opera network’s 2000 TPS.

This week, Sonic Labs kicked off the Sonic Boom bounty program on the 20th of August to encourage developer activity. The program, which marks the first major initiative of Sonic’s airdrop, will run until the 4th of November, rewarding developers building on the chain with Sonic Gems.

Earlier this month, Sonic Labs announced that DeFi veteran Andre Cronje had taken up the role of Chief Technology Officer. Cronje will steer the development of Sonic, particularly the native bridging technology, Sonic Gateway. The bridge aims to enhance interoperability across blockchain ecosystems and features a failsafe, enabling users to recover their funds on the chain.

Last month, Sonic Labs introduced a gas-free trading program in partnership with Rabby, a wallet for Ethereum and all EVM chains. The program began on the 22nd of July and will continue until the 20th of October or if the allocated funds are exhausted.

FTM has charted nearly 25% gains in the last seven days. This price uptick has been accompanied by significant daily trading volumes, a result of increased market engagement. CoinMarketCap’s data showed that FTM’s 24-hour trading volume surpassed $200 million on several instances on the 21st of August.

Sonic’s upcoming mainnet launch could rekindle on-chain activity and potentially propel prices, positioning FTM as a strong buy. FTM has already seen growing interest in the lead-up to the rollout of the Sonic blockchain later this year.

Technical indicators suggested that FTM’s near-term and long-term prospects were strong. At press time, FTM was trading between the 50- and 100-day simple moving averages (SMA).

The $0.54 mark, which coincides with the 200-day exponential moving average (EMA), poses as the next price target for bulls. Flipping resistance at this level would bring $0.68 and May’s high of $0.97 in sight.

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