fUSD stablecoin launch and rumors of Cronje’s return send Fantom (FTM) price higher

May 24, 2022
fUSD stablecoin launch and rumors of Cronje’s return send Fantom (FTM) price higher

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After a robust 2,000% rally in early 2021, Fantom (FTM) worth collapsed alongside a number of altcoins and although the blockchain has spectacular functionality, it has but to search out mass adoption as a result of lack of a compelling use case. FTM worth hit an all-time excessive at $3.46, solely to break down to its pre-bull maket lows beneath $0.25 after the failure of the Solidly DeFi venture and the departure of developer Andre Cronje.  

Information from Cointelegraph Markets Professional and TradingView reveals that since dropping to $0.238, FTM has rallied 119.23% to $0.5216 on Could 23.

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FTM/USDT 4-hour chart. Supply: TradingView

Three causes for the uptrend in FTM worth embody the launch of the primary native stablecoin on the Fantom community, new protocol upgrades and partnership bulletins that convey new performance to the community and hypothesis that Andre Cronje is working with decentralized finance (DeFi) protocols on Fantom.

Fantom launches its first native stablecoin

Essentially the most notable growth to happen within the Fantom ecosystem previously few weeks was the discharge of fUSD, the primary native stablecoin on the community.

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The launch of fUSD comes on the heels of the collapse of TerraUSD and appears to seize among the capital flight from algorithmic stablecoina by providing a over-collateralized various.

On Could 20, the Fantom Basis launched an update outlining the utmost collateral issue and minting cap for every supported type of collateral. The inspiration additionally set the fUSD staking reward at 11.3%

The replace additionally included particulars on Fantom liquid staking, setting a world cap of 150 million staked Fantom (sFTM), eradicating validators for the record of these eligible to mint sFTM and setting a mortgage to worth (LTV) ratio of FTM at 90% for the needs of minting sFTM.

New partnerships enhance sentiment for FTM

A handful of current protocol updates and new partnerships have additionally helped to convey a lift in momentum to Fantom, together with the launch of Snapsync, which permits new nodes to rapidly be a part of the community.

With the combination of Snapsync, the time it take for brand new nodes to synch might be diminished from 24 hours to 7 hours and can assist to boost community reliability, enhance scalability and create a larger diploma of decentralization.

Fantom has additionally introduced that it’s at the moment within the means of launching Gitcoin on the Fantom community to simplify the method of acquiring grants to develop within the Fantom ecosystem.

Fantom additionally partnered with Unmarshal and XP.Community. Unmarshal is a Web3 infrastructure supplier that may combine its indexing companies with the Fantom protocol to present builders easy accessibility to organized and granular on-chain knowledge.

By means of the partnership with XP.Community, Fantom customers will be capable to bridge nonfungible tokens (NFTs) between Ethereum (ETH), BNB Sensible Chain, Elrond (EGLD), Aurora (AURORA), Tron (TRX), Avalanche (AVAX) and Velas (VLX).

Associated: Crypto remittances will need to have attract of money with out regulatory constraints — Jeremy Allaire

Did Andre Cronje return?

One other issue, albeit speculative, bringing a lift FTM worth is concept that well-known DeFi developer Andre Cronje might be contributing towards DeFi growth on the Fantom community.

The hypothesis began when Cronje submitted an fUSD optimization proposal on Could 20 that’s designed to unravel a significant de-pegging problem with the stablecoin. A Fatnom pockets which is believed to belong to Cronje has additionally added greater than 100 million FTM over the previous two weeks.

VORTECS™ knowledge from Cointelegraph Markets Professional started to detect a bullish outlook for FTM on Could 20, previous to the current worth rise.

The VORTECS™ Rating, unique to Cointelegraph, is an algorithmic comparability of historic and present market circumstances derived from a mixture of information factors together with market sentiment, buying and selling quantity, current worth actions and Twitter exercise.

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VORTECS™ Rating (inexperienced) vs. FTM worth. Supply: Cointelegraph Markets Professional

As seen within the chart above, the VORTECS™ Rating for FTM spiked to a excessive of 89 on Could 20 similtaneously its worth started to extend 62.3% over the following three days.

The views and opinions expressed listed here are solely these of the creator and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer entails danger, you need to conduct your personal analysis when making a call.