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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) value collapsed alongside a number of altcoins and despite the fact that the blockchain has a powerful functionality, it has but to seek out mass adoption as a result of lack of a compelling use case. FTM value hit an all-time excessive at $3.46, solely to break down to its pre-bull market lows below $0.25 after the failure of the Solidly DeFi venture and the departure of developer Andre Cronje.  

Knowledge from Cointelegraph Markets Pro and TradingView reveals that since dropping to $0.238, FTM has rallied 119.23% to $0.5216 on Might 23.

FTM/USDT 4-hour chart. Supply: TradingView

Three causes for the uptrend in FTM value are the launch of the primary native stablecoin on the Fantom community, new protocol upgrades and partnership bulletins, which deliver 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

Probably the most notable improvement to happen within the Fantom ecosystem prior to now few weeks was the discharge of fUSD, the primary native stablecoin on the community.

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

On Might 20, the Fantom Basis released an replace outlining the utmost collateral issue and minting cap for every supported type of collateral. The muse additionally set the fUSD staking reward at 11.3%

The replace additionally included particulars on Fantom liquid staking, setting a worldwide cap of 150 million staked Fantom (sFTM), eradicating validators for the listing of these eligible to mint sFTM and setting a loan-to-value (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 deliver 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 takes for brand new nodes to synch may very well be lowered from 24 to seven hours, serving to to boost community reliability, enhance scalability and create a larger diploma of decentralization.

Fantom has additionally introduced that it’s presently within the strategy 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 providers with the Fantom protocol to provide 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 (BNB), Elrond (EGLD), Aurora (AURORA), Tron (TRX), Avalanche (AVAX) and Velas (VLX).

Associated: Crypto remittances must have allure of cash without regulatory constraints — Jeremy Allaire

Did Andre Cronje return?

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

The hypothesis began when Cronje submitted an fUSD optimization proposal that designed to resolve a serious depegging subject with the stablecoin on Might 20 . A Fantom pockets that’s believed to belong to Cronje has additionally added greater than 100 million FTM over the previous two weeks.

VORTECS™ knowledge from Cointelegraph Markets Pro started to detect a bullish outlook for FTM on Might 20, previous to the current value rise.

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

VORTECS™ Rating (inexperienced) vs. FTM value. Supply: Cointelegraph Markets Pro

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

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