As a seasoned researcher with years of experience navigating the ever-evolving crypto landscape, I find myself intrigued by Fantom’s current situation. The Sonic testnet going live and the surge in transactions is certainly an exciting development, but it seems to have had an unexpected impact on FTM‘s price.
On Friday, September 6th, Fantom’s token followed a descending path, contrary to the event of Sonic testnet launch and an increase in transactions.
The price of Fantom (FTM) dipped to $0.387, marking its lowest level since late August, and this is 27% lower than its peak in August. In an announcement on X, Sonic Labs mentioned that their testnet has gone live, with the activation phase anticipated to continue for several months.
Data on the testnet website shows that the network had processed over 106 million transactions. It is handling about 11 transactions per second, with the average gas per second being around 335,000.
The duration from when a transaction is sent to a node until it’s validated, known as the time to finality, clocked in at an impressive 0.70 seconds. Such swift performance positions Sonic among the quickest Ethereum Virtual Machines on the market.
The team behind the development envisions that this update will draw in additional innovators to construct within their platform. To further encourage creators, they’ve introduced a reward program worth approximately $27 million, focusing on sectors such as payments, borrowing, digital currencies with stable values, and gaming.
#Sonic testnet is LIVE:
Next up? Play-to-earn testnet games.
— Sonic Labs (prev. Fantom) đŸ’¥ (@0xSonicLabs) September 6, 2024
Following the completion of the testnet stage, Fantom’s FTM token is set to undergo an update, transitioning to version S. This development occurs amid a downturn for Fantom in the cryptocurrency sector, where it has experienced a significant loss of pace and market share. As a result, its market capitalization has shrunk from more than $7 billion to $1 billion.
According to DeFi Llama’s data, the value locked within the DeFi ecosystem has significantly decreased from a peak of over $7.8 billion to approximately $70 million currently. Notable figures in this ecosystem include Beethoven X, WigoSwap, SpookySwap, and Beefy.
In terms of the decentralized exchange sector, Fantom holds a relatively modest portion of the market. Over the past week, transactions on its DEX platforms totaled approximately $57.9 million, placing it as the 26th largest player within this industry.
For Sonic, the primary hurdle it faces lies within the fierce competition present in the market, which includes renowned players such as Tron (TRX) and Solana (SOL). Moreover, it will also contend with secondary networks like Arbitrum and Base, which are specialized layer-2 solutions.
Fantom price under pressure
Over the last few months, the price of FTM token has plummeted drastically. Reaching a high of $1.2267 in March, it’s now fallen more than 68%, settling at approximately $0.40. Notably, it hasn’t managed to surpass the 50-day moving average and remains within the confines of a downward trending channel on the upper side.
Consequently, it appears that Fantom’s trajectory leans towards a decrease, with the key milestone to keep an eye on at around $0.30, which is approximately 21% lower than its previous level from Friday.
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2024-09-06 18:02