Fantom token FTM grew by 13% in one day and is probably going to continue to grow

The native token of the Fantom blockchain ecosystem has risen 13% in the past 24 hours. This growth is especially impressive against the backdrop of other cryptocurrencies’ not-so-successful attempts to climb out of the pit after the FTX crash. Here’s what FTM is and why it’s growing rapidly while others are suffering. 

What is FTM and its current price? 

FTM is a native token that supports the Fantom blockchain ecosystem. In practice, it is used for staking, payments, and fees on the network, and allows holders to vote on decisions about the network’s future. A total of 3,175B coins are available at the time of writing, 2,545B of which are already in circulation.

The developers’ goal is to solve problems associated with smart contract platforms, especially the speed of transactions, which, according to Fantom’s representatives, was reduced to two seconds.

FTM has gained 32.49% in the last week, and at the time of writing is trading at $0.2401 with a market capitalization of $611M.

Possible reasons for the growth of FTM

He’s back? 

According to one of the versions, the growth of the coin began after rumors about the possible return of legendary DeFi-developer André Cronje to the Fantom project were leaked online. On LinkedIn, the expert indicated that he works as “vice president of memes” at Fantom Foundation, and on Twitter, he referred to his account on Medium with a post about the company. The relevant information was discovered by crypto analyst Miles Deutscher. 

Andre Cronje today:

• Adds .ftm to his bio
• Updates his LinkedIn to “Vice President of Memes” at @FantomFDN
• Updates profile picture
• Posts “here we go again” photo

He’s back. $FTM pic.twitter.com/Riutxvnu1J

— Miles Deutscher (@milesdeutscher) November 3, 2022

 

In the article, Cronje pointed to Fantom’s positive cash flow and noted the company’s successful 3-year track record. Immediately after opening, Fantom raised $40M. 

However, some influencers are confident that the expert didn’t actually go anywhere, but worked for the company throughout the year. Thus, if this is in fact true, the rise of the coin was triggered simply by a rumor. According to the user under the nickname Tree of Alpha, Cronje himself raised over $233K on this. If he purposely put a tag about working at Fantom, I guess that could be considered a dump of the coin outright.

1/ People in general have always had a tendency towards cults of personality, and Crypto exacerbates that.

For quite some time during the bull run, Andre Cronje was THE ambassador for $FTM.
Him leaving in the first place was a great short opp. on $FTM (which I also took then). https://t.co/3IlGDbm0AA pic.twitter.com/AtHAbCv9jR

— Tree of Alpha (@Tree_of_Alpha) November 3, 2022

Singapore investments 

According to another version, the growth of the cryptocurrency is due to the fact that digital assets management company Hyper Chain Capital (Singapore) decided to invest in Fantom and the development of a native token of $15M. 

There is a chance that this is not the last investment in the company, as it has recently been considered one of the most innovative in the digital asset market. Fantom, as we mentioned above, deals with smart contracts and also specializes in providing secure and highly secure transactions and trading accounts without intermediaries. 

Fantom also has a subsidiary called Hyperblocks, which uses validators to protect its own blockchain. Probably because of these and other metrics, Fantom has become the platform with the most users in the last week, surpassing market leaders such as Ethereum, Solana and Polygon.

How high can FTM go? Price prediction 

Before we say how high FTM can rise, it is relevant to talk about its path. Like all cryptocurrencies, the coin has both fallen and risen many times, depending on market conditions: 

• From $0.034 in June 2019 to $0.001953 in March 2020.
• To $0.05 in September 2020, and then a sudden drop at the end of the year to $0.016.
• Down to $0.8 in early 2021 to $0.25 in June 2021.
• FTM recorded an all-time high of $3.3043 in January 2022. It has fallen significantly since then but is probably on the upswing again.

Based on this data, as well as the popularity of Fantom recently, analysts at Cryptonewsz have made a forecast of the coin for the next four years. In their opinion: 

• In 2022, the average value of FTM will be around $3.38, and the minimum value will be $3.2. Quite an optimistic forecast, given that, recall, now the token is worth only $0.2401.
• There is a possibility that FTM will fall in 2023. This could be affected by any changes in cryptocurrency policy and other market negative circumstances. However, if the coin holds the $3.9 support level, investors can relax.
• If FTM goes well in 2023, the token will continue to grow and could reach at least $4.3 in 2024, and at the best, go beyond $4.7.
• Even if FTM doesn’t do well in 2023, analysts are sure that since the coin is supported by many industry experts, it is more likely to trade at $4.7 by 2025.
• FTM’s value has also been affected by the growing popularity of DeFi apps, which is expected to continue. That’s why at a minimum, the token can fix at $4.9, and the average price by 2026 will be $5.1.

How can I make money on this?

If you don’t look that far into the future and expect the price to soar above $3 in 2022, things are not so rosy. Technical analysis of FTM shows that at the moment the token is trading at the Fibonacci level of 0.382 above $0.2218. According to experts, the coin needs to break out of this resistance level (up to 0.5) in order to continue rising. 

Generally speaking, the coin has a high chance for growth. The main thing is to watch the market and not make rash decisions, as well as to pay attention to other growing coins. GMX and HEX are also among those at the time of writing, which rose in value by 7.8% and 7.7% respectively.