- Fantom has laid out the Sonic upgrade and governance proposals.
- Sonic upgrade to boost Fantom in the long run, as indicators say.
As a seasoned researcher with years of experience in analyzing blockchain projects, I find myself quite optimistic about Fantom’s [FTM] Sonic upgrade and governance proposals. The potential for this high-throughput layer-1 blockchain to combine the best of both L1 and L2 worlds is truly exciting.
Under its new identity, Fantom (FTM), now known as Sonic Labs, is preparing for its most significant overhaul by unveiling the Sonic testnet. This upgrade presents a fresh, high-speed layer-1 blockchain, complete with an inherent bridge to Ethereum [ETH] at layer-2.
Sonic aspires to unite the affordability, flexibility, and swiftness of Layer 2 with the protection offered by Layer 1. Its goal is to process a staggering 10,000 transactions per second (TPS), having already achieved 2,000 TPS on its test network. The official launch is slated for the final quarter of 2024.
The Q2 2024 Messari report spotlights significant advancements at Sonic Labs, particularly four pivotal suggestions in their governance structure.
In addition to authorizing a 190.5 million S token airdrop for user rewards, Sonic Labs has also endorsed equal compatibility between FTM (Fantom) and S tokens, along with an updated reward system for validators and developers. The specifics of this revamped system are outlined in a post on X.
The thread read,
“The plan has been accepted to issue 190,500,000 dollars worth of $S tokens as rewards for Opera and Sonic users through an airdrop.”
The plans are designed to establish a neighborhood-endorsed Sonic network and encourage creativity via the Sonic incentive program.
This program provides incentives for creating applications spanning diverse fields such as lending, Non-Fungible Tokens (NFTs), financial transactions, and artificial intelligence.
FTM falling wedge pattern breakout
Fantom [FTM], which had been experiencing a decline, recently managed to break free from a descending triangle formation on the daily chart. It then climbed up to approximately $0.50 but later retreated to around $0.40 – an essential support level.
Previously, when the price increased by approximately 37.48% following the $0.4-level, it created a chance for traders to potentially reenter the market with an aim of reaching $0.50 once more.
As the Sonic update approaches, there’s a strong possibility that the FTM (Fantom) price will surge, possibly right away or following additional supportive factors emerging.
Will the Sonic upgrade reverse FTM’s weekly losses?
As an analyst, I observed that the market capitalization of Fantom [FTM] stood around $1.14 billion. The trading volume for this period was approximately $62 million, resulting in a volume-to-market ratio of 5.53%. This ratio suggests that Fantom’s market stability is maintained by an adequate level of liquidity.
As a researcher, I’ve observed that, as of now, CoinMarketCap indicates a 17.83% price fluctuation for Fantom (FTM) over the past seven days. However, with the impending Sonic upgrade, there’s potential for this trend to reverse, given that the current circulating supply stands at approximately 2.8B out of a total 3.2B.
Market sentiment and potential upside
Furthermore, the Open Interest for FTM reduced by about 3.57% to reach $112.87 million. Yet, the overall picture, taking into account both Open Interest and Funding Rates, shows a slightly bullish trend with an OI-Weighted Funding Rate of 0.0065%. In simpler terms, while the Open Interest dropped, the combined factors suggest a slightly optimistic outlook for the market.
Over a period of time, the FTM chart has consistently shown robust performance in terms of the On-Balance Indicator (OI)-weighted Funding Rate, which adds further credibility to the bullish outlook and potential breakthrough for FTM.
Read Fantom’s [FTM] Price Prediction 2024–2025
To sum up, by integrating the OI-Weighted Funding Rate with the latest surge in Social Dominance and trading volumes due to the Sonic update, it appears that FTM may be on the verge of a price increase.
As a crypto enthusiast, I’m excited about the ongoing developments with FTM, as they significantly boost my confidence in its potential price growth. The Weighted Sentiment also adds to this optimism. However, the timeline for this increase will largely hinge on how swiftly the Sonic upgrade resonates and impacts the market fundamentals.
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2024-09-02 12:08