The Fantom price has defied odds this week. FTM has risen in the past eight consecutive days as investors bet on it becoming the next big thing in cryptocurrencies. The coin is trading at $1.80, which is more than 1,000% above the lowest level in July. This makes it one of the best performing tokens in the industry.
What is Fantom and how does it work?
Fantom is a blockchain project that is implementing a Directed Acyclic Graph (DAG) technology using the OPERA technology. The resulting product is a smart contract platform that enables developers to build versatile decentralized applications (DAPP) of all types.
Fantom uses Lachesis, which is a blockchain technology that can be plugged into any distributed ledger. This results in a highly scalable, secure and environmentally friendly, and open platform.
The FTM token is the native coin for the network. It does the same thing that ETH does for Ethereum’s technology. In this, it secures the network and offers on-chain governance. It is also used to pay for network fees and for payments. There is a supply of 3.175 billion FTMs, with, 2.1 billion of them being in circulation. The others are stored for offering staking rewards.
In the past few months, Fantom has been integrated in several platforms including Band Protocol, Chainlink, The Graph, and Covalent.
This growth has pushed the FTM price to an all-time high and its total market capitalisation to more than $4.7 billion, making it the 32nd biggest cryptocurrency in the world. This is remarkable considering that Fantom was relatively unknown a few months ago.
This growth coincided with the strong performance of other Ethereum-killers like Solana, Algorand, Avalanche, and Elrond.
Fantom price prediction
The four-hour chart shows that the FTM price has been in a parabolic rally in the past few weeks. Precisely, it has risen by more than 1,000% from its lowest level in July.
The bullish trend is being supported by the 25-day and 50-day moving averages. It has also formed a rising channel that is shown in black. Tje current price is slightly below the upper side of the channel.
Similarly, the MACD has been in a strong upward trend. Therefore, the coin will likely keep rising as the Fear of Missing Out (FOMO) period remains. This could sew it rise to more than $2.5 in the near term. Still, in the long term, I suspect that the coin will erase most of these gains as it moves to the distribution phase.
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