Fantom (FTM), native cryptocurrency of the homonymous network, has positioned itself as the second coin that rose the most this week in the top 100, behind Pendle (PENDLE). The coin had an increase of 38% in the last seven dayswith its price hovering around $0.95 on the current day, as seen in the following TradingView chart.
FTM Price. Source: TradingView. Currently, FTM ranks 49th among cryptocurrencies for its market capitalization, which has grown 10% in the last 24 hours, reaching $2.65 billion, according to data from CoinMarketCap. The takeoff that FTM has experienced has its origin in the new announcements made by the team behind the Fantom Foundation. The moves point to the launch of Sonic, a new Layer 1 network with a native Layer 2 bridge to Ethereum. In this way, Sonic will make it possible to take advantage of “large amounts of liquidity, users and protocols,” says Sam Harcourt, member of the Fantom Foundation. With this network, Harcourt assures that “the low cost, scalability and speed of a layer 1 will be combined with the security of a layer 2 bridge” to access ether (ETH), Ethereum's native cryptocurrency, and other assets. that same network. “Once the new Sonic network is launched, it will serve as a primary platform for many more developments, dApps and communities to thrive, from small Web3 teams to global corporate entities,” explains Harcourt.
New cryptocurrency in sight
As part of the launch of Sonic, The Fantom Foundation announced that it will also have its own cryptocurrency under the ticker S, as long as it is approved by the community. Users will be able to migrate their FTM in a 1:1 ratio with S when it is issued. The S crypto asset will only exist on Sonic and FTM will only exist on Opera, the name of the current network under which Fantom operates. In principle, the migration process is planned to be bidirectional, allowing users to exchange FTM and S. However, after a transition period, the migration process is expected to become unidirectional, from FTM to Ssays Harcourt. With the launch of the Sonic network, Fantom developers, applications and users “will have ample opportunities to transition to this new platform,” Harcourt notes. For the moment, the Opera chain will remain operational, but ecosystem is expected to fully migrate to the Sonic networksince its performance is superior, he assures.
Governance proposals
Likewise, a series of governance proposals, as well as programs and initiatives, were announced. The first is precisely about vote to make FTM compatible with Sonic's new S token at an exchange ratio of 1:1 at the time of its launch. Secondly, it is proposed to issue additional S cryptocurrencies to allow Sonic Labs to operate and distribute an airdrop throughout the ecosystem. As Criptopedia, the educational section of BitcoinDynamic, explains, token distributions are common in the cryptocurrency industry, since Companies seek to promote their projects, increase activity and the number of users on their networks, favor trade and expand the monetary supply of their digital economies. The third proposal indicates that they want to move forward in finding growth opportunities through Web2 and Web3 partnerships, new listings, and grants for “ecosystem migration for key Fantom developers.”