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

After a beardown 2,000% rally successful aboriginal 2021, Fantom (FTM) terms collapsed alongside aggregate altcoins and adjacent though the blockchain has awesome capability, it has yet to find wide adoption owed to the deficiency of a compelling usage case. FTM terms deed an all-time precocious astatine $3.46, lone to illness to its pre-bull maket lows nether $0.25 aft the nonaccomplishment of the Solidly DeFi task and the departure of developer Andre Cronje.  

Data from Cointelegraph Markets Pro and TradingView shows that since dropping to $0.238, FTM has rallied 119.23% to $0.5216 connected May 23.

FTM/USDT 4-hour chart. Source: TradingView

Three reasons for the uptrend successful FTM terms see the motorboat of the archetypal autochthonal stablecoin connected the Fantom network, caller protocol upgrades and concern announcements that bring caller functionality to the web and speculation that Andre Cronje is moving with decentralized concern (DeFi) protocols connected Fantom.

Fantom launches its archetypal autochthonal stablecoin

The astir notable improvement to hap successful the Fantom ecosystem successful the past fewer weeks was the merchandise of fUSD, the archetypal autochthonal stablecoin connected the network.

The motorboat of fUSD comes connected the heels of the illness of TerraUSD and looks to seizure immoderate of the superior formation from algorithmic stablecoina by offering a over-collateralized alternative.

On May 20, the Fantom Foundation released an update outlining the maximum collateral origin and minting headdress for each supported signifier of collateral. The instauration besides acceptable the fUSD staking reward astatine 11.3%

The update besides included details connected Fantom liquid staking, mounting a planetary headdress of 150 cardinal staked Fantom (sFTM), removing validators for the database of those eligible to mint sFTM and mounting a indebtedness to worth (LTV) ratio of FTM astatine 90% for the purposes of minting sFTM.

New partnerships amended sentiment for FTM

A fistful of caller protocol updates and caller partnerships person besides helped to bring a boost successful momentum to Fantom, including the motorboat of Snapsync, which allows caller nodes to rapidly articulation the network.

With the integration of Snapsync, the clip it instrumentality for caller nodes to synch could beryllium reduced from 24 hours to 7 hours and volition assistance to heighten web reliability, amended scalability and make a greater grade of decentralization.

Fantom has besides announced that it is presently successful the process of launching Gitcoin connected the Fantom web to simplify the process of obtaining grants to make successful the Fantom ecosystem.

Fantom besides partnered with Unmarshal and XP.Network. Unmarshal is simply a Web3 infrastructure supplier that volition integrate its indexing services with the Fantom protocol to springiness developers casual entree to organized and granular on-chain data.

Through the concern with XP.Network, Fantom users volition beryllium capable to span nonfungible tokens (NFTs) betwixt Ethereum (ETH), BNB Smart Chain, Elrond (EGLD), Aurora (AURORA), Tron (TRX), Avalanche (AVAX) and Velas (VLX).

Related: Crypto remittances indispensable person allure of currency without regulatory constraints — Jeremy Allaire

Did Andre Cronje return?

Another factor, albeit speculative, bringing a boost FTM terms is speculation that well-known DeFi developer Andre Cronje could beryllium contributing toward DeFi improvement connected the Fantom network.

Amid rumors astir the instrumentality of pb DeFi developer Andre Cronje, the terms of the autochthonal FTM token has risen by astir 40%. Cronje projected a fig of measures aimed astatine stabilizing the concern and expanding the sustainability of the Fantom ecosystem arsenic a whole.

— Ashley Torres (@torresamba) May 23, 2022

The speculation started erstwhile Cronje submitted an fUSD optimization connection connected May 20 that is designed to lick a large de-pegging contented with the stablecoin. A Fatnom wallet which is believed to beryllium to Cronje has besides added much than 100 cardinal FTM implicit the past 2 weeks.

VORTECS™ information from Cointelegraph Markets Pro began to observe a bullish outlook for FTM connected May 20, anterior to the caller terms rise.

The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic examination of humanities and existent marketplace conditions derived from a operation of information points including marketplace sentiment, trading volume, caller terms movements and Twitter activity.

VORTECS™ Score (green) vs. FTM price. Source: Cointelegraph Markets Pro

As seen successful the illustration above, the VORTECS™ Score for FTM spiked to a precocious of 89 connected May 20 astatine the aforesaid clip arsenic its terms began to summation 62.3% implicit the adjacent 3 days.

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.