Fantom Price Up 35.9% – TIme to Buy FTM Coin?

While many large-cap assets have slowed down, the FTM price has been doing relatively well this week. This has led to piqued investor interest, with many considering whether the asset will make an integral part of their portfolios. This analysis explores the token FTM and its platform, Fantom. How does it work? What are the benefits that investors can gain? What has been the driving force behind the recent rally in the FTM price? Let’s dig right into it.

FTM: A Unique Etherem-Killer Blockchain

Fantom is a high-performance and scalable smart contract platform that enables the creation of decentralized applications (dApps) and digital assets.

The Fantom mainnet was launched in December 2019. Its network offers a solution to the blockchain trilemma, providing a mixture of speed and security with scalability. It is one of the famed “Ethereum killers” – blockchain networks that have risen in prominence due to users’ issues with the Ethereum blockchain.

Like the many Ethereum alternatives, Fantom looks to increase scalability and reduce costs. Its infrastructure runs on the Asynchronous Byzantine Fault Tolerant (aBFT) Proof-of-Stake (PoS) consensus mechanism, which keeps it operationally efficient.

Fantom operates on a”leaderless” PoS consensus mechanism known as “Lachesis,” which secures its network and ensures both security and speed optimization. Lachesis is a consensus mechanism and part of the aBFT system. It enables network data to be processed at different times, while the network itself can maintain security even if 33 percent of participants engage in malicious behaviour.

Lachesis also offers near-instant finality. So, transactions are finalized and confirmed in less than a second. There’s no need for the lengthy mining process involved in Proof-of-Work (PoW) chains.

FTM is Fantom’s native token. It powers the entire ecosystem, with the token being used for multiple functions – governance, payments, and even staking on the network. As expected, the FTM price varies based on its adoption and use.

FTM: Price Movements in 2021

The FTM price has moved similarly to several coins this year. The asset started 2021 trading at $0.018, and it quickly saw its price rise. The FTM price hit $0.876 by February 15, and it continued to surge until it hit $0.955 by May 15. The all-time high marked a rise of 5,205 percent from the starting point for the year.

When the downturn hit, the FTM price hit $0.1181 by May 23 – a drop of 79.3 percent in less than two weeks. The asset’s price continued to hover around this region, until it finally bottomed out at $0.141 on June 20 following another market slump.

Despite the market downturn, investors remained resolute. While several large-cap assets started to make big moves from August, it took a while for FTM to pick. The asset only hit $0.5 on August 116, but it never looked back from that point.

As FTM’s one-month chart shows, the asset is trading up 539 percent in the past month – moving from $0.28 to a current price of $1.79.

Like many other coins, FTM has been especially profitable over the past week. The asset crossed its previous all-time high just on August 30, and it has already doubled that mark. With a current price of $1.79, the FTM price is up 35.9 percent in the past day and 125.06 percent in the past week.

FTM: Technical & Fundamental Analysis

Thanks to its recent price moves, FTM is doing very well technically. The asset is trading well above its 20-day moving average (MA) of $0.761, as well as its 200-day MA of $0.414. The recent price jump has brought more attention to FTM, so its relative strength index (RSI) shows an overbought level of 90.80. That’s quite high, but it’s not uncommon for a cryptocurrency.

So far, there isn’t much to attribute the growth in the FTM price to. The asset’s most recent boost came when its developers launched a 370 million FTM incentive program to encourage developers in the decentralized finance (DeFi) space.

Under the program, developers who launch on the Fantom network can apply for rewards and get between 1 million and 5 million FTM depending on their protocol’s total value locked (TVL).

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