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While the cryptocurrency market has generally been the focus of attention this year, Fantom (FTM USD) – which represents the underlying reward token of a Smart contract blockchain platform – symbolized a rising star. The FTM cryptocurrency has significantly outperformed other virtual currencies, which is notable as the sector has recently struggled with volatility. Subsequently, many sources commented on Fantom price predictions.
According to CoinMarketCap, Fantom offers decentralized finance (DeFi) services for developers using their own customized consensus algorithm. With its in-house FTM cryptocurrency, Fantom aims to “solve issues associated with smart contract platforms, particularly transaction speed, which developers say has been reduced to under two seconds.”
Fundamentally, the excitement surrounding the digital asset and the resulting spark in Fantom price predictions is focused on the platform upcoming network update called Sonic. Per CoinDeskThe upgrade should increase the speed of transaction processing and potentially spur investor interest in the FTM cryptocurrency.
Another key feature of Sonic is the integration of the so-called Fantom Virtual Machine (FVM). This protocol is programmed to significantly increase the execution speed of smart contracts. Essentially, the FVM allows for an easier transition for those looking to switch from the leading smart contract network.
The Sonic upgrade is scheduled to happen sometime this spring.
Fantom price predictions: Where will the FTM crypto end up?
As of this writing, FTM crypto is trading at $1.13 per unit. The value has almost tripled in the last month. beat multiple competing assets. Therefore, the topic of Fantom price predictions dominates blockchain-related community discussions.
According to a blog post from the crypto exchange BinanceThe average price FTM shares could reach almost $1.17 next year. By 2026, this value could rise to $1,226, followed by a rise to almost $1.29 next year. Still, these could be conservative Fantom price predictions.
Popular crypto analyst Ali Martinez believes that FTM could target a price of $1.44 until the middle of this year. There could be more room for action if the asset rises above a key resistance level around 58 cents.
Perhaps the most optimistic Fantom price prediction comes from AMBCrypto citing Possibility of a price of $2.85 this year. If so, that would represent an increase of more than 150% from the current price.
Why it matters
Currently, FTM is just one of 16 cryptocurrencies that have been in the black in the last seven days. According to CoinMarketCap, over 2.4 million digital assets are traded across 735 exchanges. In the long term, the historical data shows that cryptos generally correlate with the price of the original benchmark blockchain asset.
Therefore, investors should be wary of assets that appear to be breaking this correlation as there is a tendency to converge.
At the time of publication, Josh Enomoto did not hold, directly or indirectly, any positions in any of the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to those of InvestorPlace.com Publishing Guidelines.