- Fantom price has bounced back in the past few days.
- This rally is because of the close correlation that exists between altcoins.
Fantom price has rallied in the past few days as investors move back to Bitcoin and other altcoins. The FTM token jumped to a high of $0.3343, which was the highest level since June 10th of this year. It has surged by about 68% from its lowest point this year. According to CoinGecko, it has a total market cap of over $751 million.
Why is FTM rising?
Fantom is an Ethereum-killer that has hopes to be the best platform for developers building decentralized applications. It is powered by a technology known as lachesis, which is a Byzantine Fault Tolerant (BFT) consensus algorithm.
Lachesis enables Fantom to have extremely fast throughput, meaning that it can settle thousands of transactions within a few seconds. It is asynchronous, leaderless, and final. Its key benefits over Ethereum are that it is significantly faster and more environmentally friendly.
Fantom has been used to build hundreds of applications mostly in the DeFi industry. As such, like all platforms, the past few months have not been good for Fantom. For one, the total value locked (TVL) in its ecosystem has crashed from more than $10 billion to about $880 million. The biggest DeFi apps in Fantom are Biswap, SpookySwap, Curve, and Beethoven X.
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Many investors have simply removed their money from DeFi after the recent crash of well-known brands like Terra, Anchor Protocol, Voyager, and Vauld among others.
The Fantom price has also struggled after the resignation of Andre Cronje. Cronje was one of the leading players in the ecosystem having built some of the best-known DeFi platforms. As such, many investors left Fantom because they believed that it had some challenges.
The FTM is now rising because of the overall correlation of altcoins. Ethereum has surged to above $1,500 while the total market cap of all cryptocurrencies has jumped to over $1 trillion.
Fantom price prediction
The four-hour chart shows that the FTM price has been in a strong recovery in the past few days. The token has rallied from June’s low of $0.1940 to today’s high of $0.3380. It has managed to cross the important resistance level at $0.3166, which was the highest point on June 25th.
Fantom has rallied above the 25-day and 50-day moving averages while the Average Directional Index (ADX) has risen to 33. Therefore, Fantom will likely keep rising as bulls target the key resistance at $0.40. This view is in line with my Near Protocol prediction.
