The Fantom price rebounded on Wednesday as interest in cryptocurrencies and Decentralized Finance (DeFi) increased. The FTM token is trading at $1.4782, which is about 47% above its lowest level this week. This rally brought its total market capitalization to more than $3.7 billion.
FTM rebounds
Fantom is one of the fastest-growing Ethereum-killers in the world. The platform helps developers build decentralized applications (DApps) and decentralized autonomous organizations (DAOs).
It differs from Ethereum in several ways. First, it was built from scratch using a proof-of-stake mechanism that is known for its efficiency since it does not involve mining.
Second, the network was built using a new model based on the Directed acyclic Graph (DAG) smart contract technology that boosts its scalability.
It also uses lachesis, which is a secure, fast, and scalable platforms that make it useful for developers, banks, and even governments. Third, Fantom is extremely faster than Ethereum, which processes less than 20 transactions per second.
Fantom has also created an all-in-one DeFi suite that helps people mint, trade, lend, and borrow digital assets. These solutions are known as liquid staking, fMint, fLend, and fTrade.
The Fantom price is rising because many investors believe that the platform can become a major challenger to Ethereum. Another reason is that the DeFi industry has rebounded, with the total value locked (TVL) of all DeFi platforms rising to more than $183 billion.
According to DeFi Llama, there are 27 DeFi platforms built using the Fantom network. These platforms have a total value locked (TVL) of more than $1.29 billion. The biggest of these DeFi platforms are SpookySwap, Scream, SpiritSwap, and Tarot.
The biggest challenge for Fantom is that it faces a heavy challenge competing with Ethereum, which has hundreds of DeFi platforms that have a combined TVL of more than $85 billion.
Fantom price prediction
The four-hour chart shows that the FTM price has been in a strong bullish trend in the past few days. It has pared most of the loses made in the past few days and is still about 25% below its all-time high. The coin has managed to move above the 25-day and 50-day exponential moving averages (EMA) while the Relative Strength Index (RSI) moved from about 30 to the current 56.
Therefore, there is a likelihood that the coin will keep the upward momentum going on as bulls attempt to move to the key resistance level of $2. However, a drop below the key support at $1.25 will invalidate the bullish view.
