Here's why Fantom [FTM] has more upside potential this DeFi Summer 2.0
DeFi Summer 2.0 has officially begun. And Fantom is one of those platforms that is currently at the top of the new wave of decentralized finance. The layer one smart contract platform got off to a spectacular start in September.
Its native FTM token is up a staggering 571% from trading near $ 0.154 in July to $ 0.965 on September 1. Over the past week alone, FTM was up 109%. Despite the stellar rise, the digital asset is nowhere near a saturation point. This is why:
Fantom (FTM) prepared for a golden cross
FTM's parabolic rise has been strongly supported by volume. The daily moving averages also showed an optimistic outlook as they held well below the FTM candles. After suffering a bullish crossover with the 100 DMA (Blue), the rising 50 DMA (Pink) appears ready for a golden cross with the 200 DMA (Yellow).
The first stage of FTM in August saw a profit-taking phase that resulted in a short sell-off. The red bars of the Awesome Oscillator (AO) during that time evidenced the same, but the subsequent longer green closing bars represented the bullish momentum in the coin market.
In the increase of On Balance Volume (OBV) we have another positive signal. However, the Relative Strength Index (RSI) forming a bearish divergence threatened the bullish narrative at stake.
If sellers try to lower the price, the FTM demand zone could be tested within the range of $ 0.72 to $ 0.6. Since the market in general appears to be quite bullish, the digital asset can avoid a damaging turn from this level and rebound.
Behind the scenes: what makes Fantom so different?
Since the August rally of Bitcoin and other major altcoins, investors have not focused on DeFi prices that were consolidating before posting gains. Developers from different projects have been able to focus on several crucial protocol updates in the last month. As a result, DeFi-related tokens have been gradually gaining ground and are expecting a breakout in September.
While several projects like Avalanche and Celo have also noticed tremendous price action, many experts note that Fantom is inherently unique. At least with regard to the incentive programs that catalyzed their rallies.
#Fantom key stats:
🔴Purpose: incentivize building on Fantom
🏦Allocation: 370M $ FTM tokens.
🥧% of total supply: 11%
💸Dollar value of incentive: $ 370mhttps: //t.co/F89fLOimJS
– 0xkydo (@ 0xkydo) August 31, 2021
Unlike Avalanche and Celo, Fantom is allocating a higher percentage, 370 million FTM to be precise, which equates to roughly $ 320 million to its incentive program which is designed to attract new protocols and liquidity to its ecosystem. This was enough to stimulate the massive transaction numbers on Fantom's EVM chain, which tripled shortly after the ad. Popular developer Andre Cronje also noted:
Almost a year later.
Cross chain defi is growing.
Bridges are significantly more decentralized.
And L1's are the new L2's.
I'm embracing it. Fantom is an ETH scaling solution. Going to be relentlessly shilling FTM. https://t.co/74uAxpphCZ
– Andre Cronje (@AndreCronjeTech) August 30, 2021