Fantom price prediction: will it set new highs or not?
FTM, the native cryptocurrency of the Fantom blockchain, has been trading around record highs in the past week, having soared by as much as 14,300% so far this year.
Several cryptocurrencies have made strong gains, with bitcoin (BTC) leading the charge to approach its previous all-time high ahead of the launch of a long-awaited bitcoin exchange-traded fund (ETF). Others have weakened, likely driven by investors reallocating their portfolios to capitalise on the rally.
What is the Fantom coin and what has been driving the price higher?
Let’s take a look at the protocol and the long-term price outlook to help you decide whether to buy Fantom’s coin for your cryptocurrency portfolio.
Fantom develops new smart contract consensus mechanism
Fantom is a secure and scalable smart contract platform aimed at the development of decentralised finance (DeFi) applications. It’s designed to overcome the limitations in transaction speeds that are affecting older blockchain platforms running smart contracts.
Fantom develops new smart contract consensus mechanism
Fantom is a secure and scalable smart contract platform aimed at the development of decentralised finance (DeFi) applications. It’s designed to overcome the limitations in transaction speeds that are affecting older blockchain platforms running smart contracts.
Launched in 2018, the Fantom Foundation leads the open-source platform’s development. It was founded by Ahn Byung Ik, a South Korean computer scientist. The Fantom mainnet, called Opera, launched in December 2019. The Foundation is currently led by chief CEO and chief information officer (CIO) Michael Kong, along with a team of engineers, scientists and designers with experience in full stack blockchain development.
Fantom uses Lachesis, a new consensus mechanism to facilitate smart contracts. It’s an Asynchronous Byzantine Fault Tolerance (aBFT) consensus protocol that the company claims is faster and cheaper than older technologies, while maintaining high security standards. It’s the consensus layer of the blockchain, and it can be connected to any distributed ledger.
According to the Fantom website: “An aBFT consensus protocol allows for maximum decentralization, high scalability, and bank-grade security.”
“Unlike Proof-of-Work, round-robin Proof-of-Stake, coinage Proof-of-Stake, and sync BFT, Lachesis nodes don’t send blocks to each other. Only the events are being synced between nodes. Validators don’t vote on a concrete state of the network; instead, they periodically exchange observed transactions and events with peers.”
Fantom can scale up to many nodes, and as each application is built on its own blockchain, they avoid becoming bogged down by network congestion. The Opera mainnet uses the Ethereum Virtual Machine (EVM), enabling developers to transfer their Ethereum-based decentralised applications to Fantom. “Its modular architecture allows for full customisation of blockchains for digital assets, with different characteristics tailored to their use-case,” according to the website.
There are three forms of Fantom coins: the FTM token that runs on the Fantom mainnet; an ERC-20 FTM token that runs on the Ethereum blockchain; and a BEP-2 FTM token on the Binance Chain that facilitates transactions on the Binance decentralised exchange (DEX).
The FTM token price has rallied this year as the Fantom Foundation has announced several partnerships and integrations. The FTM coin graph shows that the price started the year at $0.01693 and spiked to $0.8717 in February, retreated and then climbed to $0.9571 in May, and quickly dropped to $0.2634 as the cryptocurrency markets fell. The FTM coin value bottomed out at $0.1533 in July, before starting to rally strongly in August.
