The Fantom price rose for the second straight day on Monday as the market sentiment improved. FTM, its native token, is trading at $1.9876, which is about 9.56% above the lowest level during the weekend.
Fantom crawls back
Fantom is a fast-growing blockchain project that seeks to provide better solutions for developers than Ethereum.
It is a layer-1 project that solves the speed, scalability, and cost challenges that developers face. As a result, its network is incredibly faster than Ethereum. While the latter handles less than 30 transactions per second, Fantom can process over a thousand. Its time to finality is also better than most platforms.
Apps built using Fantom are significantly cheaper, making them better for end-users. The average cost is a few cents, while Ethereum costs are more than $30.
In the past few months, Fantom’s ecosystem has been growing as developers seek to take advantage of these benefits. For example, data compiled by DefiLlama shows that the number of verified apps in the network is 158. Their total value locked (TVL) has risen by 10% in the past 30 days to over $8.8 billion.
It is now the fifth-biggest platform in the industry after Ethereum, Terra, Binance, and Avalanche. The biggest apps in the platform are MultiChain, SpookySwap, Yearn Finance, and Geist Finance.
Additionally, Fantom is becoming a major player in the non-fungible token (NFT) industry. Some of the top NFT platforms in the industry are PaintSwap, Artion, and NFTKEY. Its yield optimizers include Beefy, Liquid Driver, and Eleven.
However, while the number of apps and TVL has jumped, the total transactions in the network remain under pressure. As shown above, the total processes in the network have declined sharply from their all-time high in September last year.
Another main reason why the Fantom price has done well in the past few months is that the developers have embraced partnerships.
For example, the company has increased its brand awareness by being a leading sponsor in Formula 1. It has a long-term partnership with Scuderia Alphatauri, one of the top teams in the industry.
In the past few weeks, it announced multiple partnerships with companies like Blocknative, Stader, and Nexo. Its deal with Nexo is important since it means that holders of Fantom in Nexo’s platform will be able to earn interest. Its other agreements are with Shopping.io and Blocknative.
Still, Fantom faces a number of challenges going forward. First, there is the challenge of competition from the likes of Avalanche, Binance Smart Chain, and Kadena. Some of these platforms offer better features.
Second, there is the issue of falling transactions. While their number has risen slightly, it remains significantly below its all-time level.
Further, like all cryptocurrencies, the Fantom price is affected by the Federal Reserve. With inflation soaring and the unemployment rate falling, there is a likelihood that the Fed will deliver several rate hikes this year.
Fantom price prediction
The daily chart shows that the FTM price found strong resistance at about $3.3436. It struggled to move above this level in October last year and January. The coin has moved slightly below the 25-day and 50-day Moving Averages, while the Smart Money Index (SMI) has been in a bearish trend. It has also formed an ascending triangle pattern.
Therefore, there is a possibility that the coin will resume the bullish trend as bulls target the upper side of the triangle pattern. If this happens, the next key resistance level to watch will be at $3.34.