Sonic

Fantom

FTM, the native token of the Fantom layer-1 smart contract platform, rose 5% in seven days to $0.6850 on Oct. 2. This is part of a rebound that began on Sept. 6 and has seen the price rise more than 71% over the last 30 days.
According to data from <a data-ct-non-breakable="null" href="https://subscription.cointelegraph.com/?_gl=1*7499wx*_ga*MTQ0MzQ0NzI4Ny4xNzE2MzY1NTA0*_ga_53R24TEEB1*MTcxNjM2NTUwNC4xLjEuMTcxNjM2Njg2MC4wLjAuMA.." rel="noopener noreferrer nofollow" target="null" text="null" title="null">Cointelegraph Markets Pro</a> and <a data-ct-non-breakable="null" href="https://www.tradingview.com/symbols/BTCUSD/?exchange=BINANCE" rel="noopener noreferrer nofollow" target="null" text="null" title="null">TradingView</a> Fantom (<a data-ct-non-breakable="null" href="https://cointelegraph.com/fantom-ftm-price-index" rel="noopener noreferrer nofollow" target="null" text="null" title="null">FTM</a>) price rose from a low of $0.3574 on Sept. 6, climbing as much as 103% to a four-month high of $0.7642 on Oct. 1.
<figure><img alt="Fantom price gains 70% in 30 days — What’s driving FTM?" name="" src="https://s3.cointelegraph.com/uploads/2024-10/01924ef5-e5d3-743c-9c18-e8d381736621">
 <figcaption style="text-align: center;">
 FTM/USD daily chart. Source: <a data-ct-non-breakable="null" href="https://www.tradingview.com/x/496BiLBM/" rel="noopener noreferrer nofollow" target="null" text="null" title="https://www.tradingview.com/x/496BiLBM/">TradingView</a>
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Trading activity has also moved in tandem with <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/fantom-ftm-price-surges-40-in-a-month-what-s-behind-the-momentum" rel="noopener noreferrer nofollow" target="null" text="null" title="null">FTM’s price surge</a>. FTM’s spot trading volumes topped $450 million on Oct. 1, rising by 77% over the last seven days and approximately 450% over the last 30 days. Its market capitalization is currently $9.7 million, cementing its position as the 46th largest cryptocurrency in the world, per data from CoinMarketCap.
Let’s look at the factors behind FTM’s recent bullish momentum.
<h2 id="strong-ftm-price-rallied-ahead-of-the-sonic-upgrade-and-rebrand-to-s-strong">FTM price rallied ahead of the Sonic Upgrade and rebrand to S</h2>
The FTM price rally follows the community’s excitement for the upcoming update known as the <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/fantom-unveils-sonic-foundation-for-new-sonic-chain" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Sonic upgrade</a>, which is scheduled for November or December.
The new Sonic chain is expected to significantly enhance the network’s performance by introducing a new Fantom Virtual Machine (FVM), optimized Lachesis consensus mechanism, and Carmen database storage.&nbsp;
After this upgrade, the Fantom blockchain will be able to process over 2,000 transactions per second (TPS) with a finality time of roughly one second. This will be a substantial improvement from the current 30 TPS.&nbsp;
In line with these preparations, the Fantom Foundation rebranded Sonic Labs on Aug. 1. The change of the native token FTM to the new token ticker $S is expected to happen by the end of 2024.
<figure><img alt="Fantom price gains 70% in 30 days — What’s driving FTM?" name="" src="https://s3.cointelegraph.com/uploads/2024-10/01924ef6-7d72-780e-afc3-9b087a48e5c8">
 <figcaption style="text-align: center;">
 Fantom Foundation rebrands to Sonic Labs. Source: <a data-ct-non-breakable="null" href="https://x.com/0xSonicLabs/status/1819057799722414538" rel="noopener noreferrer nofollow" target="null" text="null" title="https://x.com/0xSonicLabs/status/1819057799722414538">Sonic Labs</a>
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The S token will differ from FTM in several aspects including initial community distribution through an airdrop, streamlined staking processes and new user incentive programs.&nbsp;
In May, the Fantom community approved a proposal to migrate their FTM tokens to the S token at a 1:1 ratio during the migration to the Sonic chain.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/fantom-unveils-sonic-foundation-for-new-sonic-chain" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Fantom unveils Sonic Foundation for new Sonic Chain</a>
<h2 id="strong-increased-tvl-and-network-activity-strong">Increased TVL and network activity</h2>
The impending upgrade has revived investor interest in Fantom’s <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/defi-a-comprehensive-guide-to-decentralized-finance" rel="noopener noreferrer nofollow" target="null" text="null" title="null">decentralized finance </a>ecosystem.
Data from DefiLlama shows that the <a data-ct-non-breakable="null" href="https://cointelegraph.com/explained/what-is-total-value-locked-tvl-in-crypto-and-why-does-it-matter" rel="noopener noreferrer nofollow" target="null" text="null" title="null">total value locked</a> (TVL) in Fantom’s DeFi applications has risen by 55% in the last month to $108.8 million. However, this is a mere shadow of its peak of $7.93 billion recorded in March 2022.
<figure><img alt="Fantom price gains 70% in 30 days — What’s driving FTM?" name="" src="https://s3.cointelegraph.com/uploads/2024-10/01924ef7-37d3-70b2-ae5b-82fc7d302174">
 <figcaption style="text-align: center;">
 Total value locked on Fantom. Source: DefiLlama
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This increase in TVL is a sign of increasing user interaction with the blockchain as evidenced by an increasing number of daily active addresses.&nbsp;
<a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/active-vs-new-addresses-in-crypto-key-differences-explained" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Daily active addresses</a> (DAA) refers to the number of unique addresses that were involved in a successful transaction on a given blockchain over a specific time period.&nbsp;
Data from market intelligence firm Gassnode reveals that DAAs on the Fantom blockchain increased 162% between Sept. 1 and Oct. 1.
<figure><img alt="Fantom price gains 70% in 30 days — What’s driving FTM?" name="" src="https://s3.cointelegraph.com/uploads/2024-10/01924ef7-9189-7835-8b44-e22cfc6f39e2">
 <figcaption style="text-align: center;">
 Number of DAAs on FTM. Source: Glassnode
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The number of daily transactions has also significantly increased, rising by 66% from 217,487 to 361,345 month-to-date, according to <a data-ct-non-breakable="null" href="https://ftmscan.com/chart/tx" rel="noopener noreferrer nofollow" target="null" text="null" title="null">data</a> from FTMScan.
This increase in TVL and network activity is a sign of increasing user interaction with the blockchain, which leads to growing demand for the FTM token. High demand is usually a precursor for substantial price growth.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Fantom price gains 70% in 30 days — What’s driving FTM?

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