Interoperability became the hot topic in February as platforms like Binance Smart Chain and Polkadot work to build Ethereum network bridges that allow users to evade high transaction costs and network congestion.
Fantom (FTM) is the latest project to receive a boost by offering cross-chain functionality with Ethereum and data from Cointelegraph Markets and TradingView shows a 1,570% increase in the FTM price, from $ 0.025 on January 23 to a new high of $ 0.43 on February 21.
Chart in 4 hours FTM / USDT. Source: TradingView Three fundamental reasons for the rally actuel of Fantom are the release of a cross bridge between Ethereum and Fantom, the roller - on-chain governance features and the ability to stake tokens on the network while accessing their value for use in the ecosystem decentralized financial.
Yearn.finance helps facilitate a cross bridge to Ethereum
On February 21, Fantom, with the help of Andre Cronje of Yearn.finance, announced the development of 'A chain cross-bridge with Ethereum that allows users to transfer ERC-20 tokens to Fantom to "take advantage of fast and cheap transactions".
According to the team, transactions on Fantom "get confirmed in 1-2 seconds" and "cost a fraction of a cent. The team also promised that cross-chain functionality with other chains will follow soon.
VORTEC dataS ™ from Cointelegraph Markets Pro started at detect a bullish outlook for FTM on February 21, ahead of the recent price hike.
The VORTECS ™ score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trade volume, movements recent awards and Twitter activity.
VORTECS ™ score (green) against FTM price. Source: Cointelegraph Markets Pro As the chart below shows Above this, the VORTECS ™ score for FTM peaked at 82 on February 16, several days before the start of the recent price rally. On February 17, Cronje posted a tweet mentioning the benefits of deploying new cross-chain assets on Fantom .
Cronje said:
A day after the tweet, the FTM price rose from $ 0.154 to $ 0.218 and altcoin surged again on February 19 as 'it hit a new 2021 high of $ 0.277.
VORTECS ™ score (green) against FTM the price. Source: Cointelegraph Markets Pro The VORTECS ™ score for Fantom then increased from a low of 5 6 on February 19 to a high of 74 on February 21, shortly before the price hits a new all-time high.
Chain governance boosts community involvement
Another popular theme current bull market is the ability of token holders to participate inu development of the ecosystem via a governance mechanism.
On January 12, the Fantom Foundation unveiled the release of on-chain governance for the Fantom network, becoming one of the first chains to support such operation for a fully decentralized blockchain.
Thanks to the governance mechanism, each FTM token equals one vote, and any token holder can submit a proposal on ways to improve the ecosystem, as well as vote on any pending proposal .
Proposal submissions cost 100 FTM, which is burned during the operation, and voting costs a fraction of 1 FTM.
The Fantom voting system differs from other governance platforms in that it offers a variety of proposal models and the ability to express the degree of agreement with the proposition as opposed to a simple "yes " or a "no " vote.
Fantom plans to integrate staking and DeFi functionality
A third motivator behind FTM's recent price hike is the introduction of liquid staking, or the possibility of picketing tokens on the network and simultaneously access the token value to be used in DeFi.
On most Proof of Stake networks, token holders must choose between staking their tokens to secure the network and earn rewards or forfeiting those rewards to gain access to the token value as collateral or to for business purposes.
Holders of FTM can wager their tokens on the network and strike an equivalent amount of sFTM, which can then be used as collateral on the Fantom Finance DeFi Platform.
Providing token holders with an additional way to earn a return turned out to be a nice incentive, and after FTM was listed on SushiSwap and 1 inch on January 25, its price exploded from $ 0.05 to $ 0.26 over the next three months. days.
Since then, FTM has been added to Coinbase Custody and Ledger hardware wallet, besides being chosen by the Ministry of Digital Transformation of Ukraine as the platform for property exchange intellectual.
Each of these developments support the strong breakout of the FTM price, and the upcoming public release of its Ethereum cross-chain bridge has placed Fantom in a good position to receive a new level of DeFi engagement. Additionally, the prospect of transaction fees below $ 0.01 can be a tempting incentive for crypto traders and could lead to liquidity migration.
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