Fantom (FTM) Token Rallies 71% in 30 Days Ahead of Sonic Upgrade and Rebrand to $S

The FTM price rally follows the community's excitement for the upcoming update known as the Sonic upgrade, which is scheduled for November or December.

The price of FTM, the native token of the Fantom layer-1 smart contract platform, has seen a significant 5% increase over the last seven days, reaching $0.6850 on Oct. 2. This marks a notable rebound from Sept. 6, with the token price surging by more than 71% over the last 30 days.

According to data from Cointelegraph Markets Pro and TradingView, the price of Fantom FTM $0.6983 rose from a low of $0.3574 on Sept. 6, clocking in a maximum gain of 103% to hit a four-month high of $0.7642 on Oct. 1.

FTM

$0.6983

FTM/USD daily chart. Source: TradingView

This bullish momentum is further supported by a surge in trading activity, with FTM's spot trading volumes reaching a peak of $450 million on Oct. 1. This translates to an increase of 77% over the last seven days and an impressive 450% over the last 30 days. At the time of writing, FTM's market capitalization stands at $9.7 million, securing its position as the 46th largest cryptocurrency in the world, as per data from CoinMarketCap.

Now, let's delve into the key factors contributing to FTM's recent bullish performance.

FTM price rallies ahead of Sonic Upgrade and rebrand to $S

The rally in FTM price comes amid growing excitement within the community for the upcoming update, known as the Sonic upgrade, which is slated for either November or December.

The new Sonic chain is poised to dramatically enhance the network's performance through the introduction of a new Fantom Virtual Machine (FVM), an optimized Lachesis consensus mechanism, and Carmen database storage.

After this upgrade, the Fantom blockchain will be capable of processing more than 2,000 transactions per second (TPS) with a finality time of about one second. This marks a significant improvement from the current capacity of 30 TPS.

In line with these preparations, the Fantom Foundation completed a rebrand of Sonic Labs on Aug. 1. As part of this transition, the native token FTM is also set to receive a new token ticker, $S, by the end of 2024.

Fantom Foundation rebrands to Sonic Labs. Source: Sonic Labs

The S token will differ from FTM in several aspects, including an initial community distribution via airdrop, streamlined staking processes and new user incentive programs.

Back in May, the Fantom community approved a proposal to migrate their FTM tokens to the S token at a 1:1 ratio during the migration to the Sonic chain.

Related: Fantom unveils Sonic Foundation for new Sonic Chain

Surging TVL and network activity bodes well for FTM price

The impending upgrade has also served to pique investor interest in Fantom's decentralized finance ecosystem.

Data from DefiLlama shows that the total value locked (TVL) in Fantom's DeFi applications has seen a remarkable 55% increase over the last month, now sitting at $108.8 million. However, it's worth noting that this is a far cry from its peak TVL of $7.93 billion, which was recorded in March 2022.

Total value locked on Fantom. Source: DefiLlama

This increase in TVL suggests that users are actively engaging with the blockchain, which is further corroborated by a surge in daily active addresses.

Daily active addresses (DAA) refers to the number of unique addresses that were involved in a successful transaction on a given blockchain over a specific time period.

According to data from market intelligence firm Glassnode, DAAs on the Fantom blockchain have seen an impressive 162% increase between Sept. 1 and Oct. 1.

Number of DAAs on FTM. Source: Glassnode

The number of daily transactions has also seen a significant uptick, increasing by 66% from 217,487 to 361,345 month-to-date, based on data from FTMScan.

This surge in TVL and network activity is indicative of increasing user interaction with the blockchain, which in turn leads to growing demand for the FTM token. Ultimately, high demand tends to serve as a precursor for substantial price growth.

This article is for informational purposes only and not intended to be used as legal, tax, investment, financial, or other advice.

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