fUSD stablecoin launch and rumors of Cronje’s return send Fantom (FTM) price higher

Fantom (FTM), despite a strong rally of 2000% in early 2021, crashed along with other altcoins. Despite its impressive capabilities, the blockchain is still struggling to gain mass adoption because it lacks a compelling use case. FTM’s price reached an all-time high of $3.46. However, it fell to below $0.25 following the collapse of Solidly DeFi and the departure from developer Andre Cronje.

Data from TradingView and Cointelegraph Markets Pro shows that FTM’s dropped to $0.238, but has rallied to $0.5216 since May 23, according to TradingView and Cointelegraph Markets Pro.

FTM/USDT 4-hour chart. Source: TradingView

The three main reasons behind the increase in FTM prices are: the launch of the first native stablecoin, protocol upgrades and announcements that bring new functionality to Fantom, as well as speculation that Andre Cronje may be working with Decentralized Finance (DeFi) protocols on Fantom.

Fantom launches the first native stablecoin

In the Fantom ecosystem, the most significant development in the last few weeks was the release fUSD. This native stablecoin is now available on the network.

fUSD was launched just after the collapse of TerraUSD. It aims to capture capital flight from algorithmic stabilitycoins by offering an over-collateralized option.

The Fantom Foundation published an update on May 20 that outlined the maximum collateral factor for each form of collateral and the minting limit. The fUSD staking reward was also established by the foundation at 11.3%

Update also includes details about Fantom liquid Staking, setting a global limit of 150 million staked Fantoms (sFTM), and removing validators from the list of those who are eligible to mint sFTM. Also, the update included information on loan-tovalue (LTV), ratios of FTM at 90 percent for the purpose of minting sFTM.

FTM sentiment is improved by new partnerships

Fantom has seen a few recent protocol updates and partnerships that have helped boost its momentum, including the launch Snapsync which allows new nodes quickly to join the network.

Snapsync integration could reduce the time required for new nodes synch from 24 hours to seven hours. This will help to improve network reliability, increase scalability, and encourage greater decentralization.

Fantom also announced that Gitcoin is being launched on the Fantom network. This will make it easier to obtain grants to help you develop in the Fantom ecosystem.

Fantom has also partnered up with XP.Network and Unmarshal. Unmarshal, a Web3 infrastructure provider, will integrate its indexing services and the Fantom protocol. This will give developers easy access of organized and granular data on-chain.

Fantom users can now bridge nonfungible tokens between XP.Network (ETH), BNB Smart Chain, BNB), Elrond(AURORA), Tron [TRX], Avalanche [AVAX] and Velas (“VLX”) through the partnership with XP.Network

Related: Crypto remittances should have the allure of cash, without regulatory constraints — Jeremy Allaire

Did Andre Cronje return?

A second factor that could boost FTM prices is speculation that Andre Cronje, a well-known DeFi developer, might be helping to develop DeFi on the Fantom network.

The native FTM token’s price has increased by nearly 40% amid rumors of Andre Cronje’s return to DeFi. Cronje suggested a variety of measures to stabilize the situation and increase the sustainability of the Fantom ecosystem in general.
— Ashley Torres (@torresamba) May 23, 2022

Cronje submitted an optimization proposal for fUSD that was intended to fix a major problem with stablecoin depegging on May 20. Cronje is believed to have purchased a Fantom wallet, which has added over 100 million FTM in the last two weeks.

VORTECS(tm), data from Cointelegraph Markets Pro, began to detect a bullish outlook on FTM on May 20th, prior to the recent price increase.

Cointelegraph’s exclusive VORTECS(tm), Score is an algorithmic comparison between historical and current market conditions. It is derived from a combination data points, including trading volume, market sentiment and recent price movements, as well as Twitter activity.

VORTECS(tm), Score (green), vs. FTM Price. Source: Cointelegraph Markets Pro

The chart shows that FTM’s VORTECS(tm Score) spiked to an all-time high of 89 on May 20, while its price increased 62.3% in the following three days.

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