News
Fantom Sonic: Will Ethereum Integration Help FTM Price?
- Fantom revealed that Ethereum will allow token migration.
- Although the price of FTM has increased, reaching $1 may be difficult in the short term.
Layer 1 Blockchain Ghost [FTM] has revealed a new set of important details as it nears the final stages before the launch of the Sonic update.
For those unfamiliar, the Sonic update is the next iteration of Fantom which would reportedly increase the number of transactions per second (TPS) up to 2000.
However, in addition to the performance improvement, the recent update is mentioned Ethereum [ETH] as a main player in the development.
Ethereum to help the transition
According to memorandum Directed at FTM holders, the project would launch a new layer 1 and layer 2 chain. For both chains, the project claims that token holders will be able to transfer assets to Ethereum.
Has explained,
“The Sonic Chain will be a layer 1 platform that connects to Ethereum via a custom-built layer 2 bridge, allowing Sonic to tap into large amounts of liquidity, users and protocols. This allows the network to combine the low cost, scalability, and speed of a layer 1 with the security of a layer 2 bridge for accessing native ETH and other assets on Ethereum.”
Fantom previously mentioned plans to launch a launch token with the ticker “S” for Sonic. Therefore, FTM holders can migrate their tokens to S at a 1:1 ratio using Ethereum.
At the time of writing, FTM price was $0.86, up 6.22% over the past 24 hours. The price increase could be linked to the growing optimism geared towardsassign the update and symbolic introduction.
Additionally, AMBCrypto noted that 24-hour active addresses on Fantom increased on May 17. The increase implied an increase in the rate of successful transactions on the network.
Source: Santimento
However, at the time of this writing the parameter had decreased, implying that the increase only lasted for a short time. Likewise, on-chain data showed that daily circulation has decreased.
Network activity is struggling to sustain
At the time of this writing, FTM circulation was 2.97 million, confirming the idea that tokens used in transactions had shrunk.
If these metrics continue to fall, it may be difficult for FTM price to do so get closer to $1.
But that doesn’t mean the value wouldn’t increase. At the same time, a significant decline could be ruled out. Additionally, we looked at Total Value Locked (TVL).
According to DeFiLlama, Fantom’s TVL was $133.38 million. This was a significant increase in the last 30 days. The increase indicates an improvement in the health of the protocols operating under the chain.
Source: DeFiLlama
Realistic or not, that’s it FTM market capitalization in ETH termsS
However, this value remains low compared to 2022, when the metric reached a staggering $7 billion. As it stands, it may be difficult for Fantom to experience that level of stranded resources again.
But when the Sonic update launches, confidence could return to the chain, which could see a notable influx of goods being deposited.