- Fantom has revealed that Ethereum will enable token migration.
- FTM price has risen, but it may be difficult to reach $1 in the short term.
Layer 1 Blockchain Fantom [FTM] has released a new set of important details as Sonic Upgrade approaches its final stages before its launch.
For those unfamiliar, Sonic’s upgrade is the next version of Fantom, and the project claims it will increase transactions per second (TPS) to 2000.
However, in addition to performance improvements, recent upgrades mention Ethereum [ETH] As the main player in development.
Ethereum supporting the switch
by memo This project, aimed at FTM holders, starts a new Layer 1 and Layer 2 chain. The project said that for both chains, token holders can bridge their assets to Ethereum.
To explain,
“Sonic Chain will be a Layer 1 platform that connects to Ethereum through a custom-built Layer 2 bridge, giving Sonic access to vast amounts of liquidity, users, and protocols. It combines the low cost, scalability, and speed of a layer 2 bridge to access native ETH and other assets on Ethereum.”
Fantom previously said it plans to release a launch token with the Sonic ticker “S.” Therefore, an FTM holder can use Ethereum to transfer his tokens to S at a 1:1 ratio.
At the time of writing, FTM price was $0.86, up 6.22% in the past 24 hours. The price increase may be related to increased optimism towards upgrades and token introduction.
Additionally, AMBCrypto noticed a spike in 24-hour active addresses on Fantom on May 17th. This increase means that the success rate of transactions on the network has jumped.
Source: Santiment
However, as of this writing, the indicator is decreasing, suggesting that the increase was only short-lived. Similarly, on-chain data showed a decline in daily circulation.
Difficult to maintain network activity
As of this writing, FTM has 2.97 million coins in circulation, supporting the idea that fewer tokens are being used for transactions.
If these indicators continue to fall, it may be difficult for FTM’s price to approach $1.
But that doesn’t mean it won’t increase in value. At the same time, a significant drop may not be an option. We also looked at the total value locked (TVL).
According to DeFiLlama, Fantom’s TVL was $133.38 million. significant increase In the last 30 days. This increase indicates that the health of the protocols operating below the chain has improved.
Source: Defilama
Realistic or not, FTM’s market cap in ETH terms is as follows:
However, this value remains low compared to 2022, when this indicator reached a staggering $7 billion. As it stands, it may be difficult for Fantom to experience that level of locked assets again.
However, starting the Sonic upgrade could bring trust back to the chain and result in a significant influx of deposited assets.
