Fantom has been forming a descending wedge pattern off late. This is a bullish indicator that signals the possibility of an upcoming price breakout. This breakout could push FTM toward the $0.40 resistance area in early 2023.
Launched in June 2018, Fantom is a smart-contract-enabled blockchain network. It can process up to 10,000 transactions per second (TPS) at less than $0.01 per transaction. Due to this high scalability and cost-effectiveness, Fantom is often considered an Ethereum killer. However, 2022 was not kind to Fantom (FTM). The token fell nearly 92 percent last year, dropping from $2.30 on January 1, 2022, to $0.19 on December 31, 2022.
Fortunately, the tables seem to be turning for FTM in 2023. At the time of writing, the token was up nearly eight percent in the last 24 hours, changing hands at $0.24. This marks a 22 percent gain since the start of the year. The sudden boost seems to be the result of key management additions and a promising future road map.
But what does this road map contain and can it trigger a turnaround for FTM in 2023? Let’s find out.
Fantom to focus extensively on the DApp ecosystem in 2023
With newly appointed board member, Andre Cronje, at the helm, Fantom seems to be placing its bets on decentralised apps in 2023. “Our overarching objective over the next 12 months will be towards creating an environment for DApp developers to build out sustainable businesses while differentiating ourselves from other layer 1 solutions,” Cronje said in a recent blog post.
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Cronje is a prolific developer who is often considered the “Godfather of DeFi.” He is the creator of the Yearn Finance protocol and served as the Technical Advisor to the Fantom Foundation for several years. However, Cronje quit the DeFi space in early 2022 citing the “toxic” DeFi community as the primary reason for his departure.
Fortunately, on November 3, 2022, Cronje signalled his return to Fantom. He changed his Twitter profile picture to an image of him holding up the Fantom logo and added “Co-Founder & Architect @fantomfdn” to his bio. The news caused FTM to jump 40 percent, going from $0.22 on November 3 to $0.31 on November 5, according to data from CoinMarketCap.
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Since then, Cronje has announced several proposals that focus on the growth of decentralised activity on Fantom. For instance, on December 2, Fantom put forward a governance proposal seeking to reduce its token burn rate by 75 percent. Instead of destroying this FTM, the proposal states that the saved network fees would be redirected toward DApp builders as an incentive.
More recently, the platform passed a governance proposal to set up gas monetisation. Gas monetisation allows DApps to share revenue based on the gas used in transactions. This is a great incentive for DApps to come onboard the network. In addition to gas monetisation, the platform will also introduce Gas subsidies, which could allow DApps to interact without requiring users to pay gas fees themselves.
Going forward, Fantom is also looking to implement account abstraction. This would enable social recovery options, including email and password verification, social media login, facial recognition, etc. This initiative will further improve the DApp experience on Fantom.
In addition, Cronje also announced plans for a Fantom Virtual Machine and a new storage mechanism. This would allow Fantom to “reach towards the physical limitations of hardware” and perform at its maximum threshold. Cronje also said that the team was working on marketing and business development, with more “good news” expected “towards the end of Q1/start of Q2 2023.”
Will the new roadmap trigger a recovery for FTM?
Fantom has been forming a descending wedge pattern off late. This is a bullish indicator that signals the possibility of an upcoming price breakout. This breakout could push FTM toward the $0.40 resistance area in early 2023. Moreover, the push toward DeFi seems to be paying off, with FTM registering double-digit gains since the start of the year. Finally, trading volume has also risen to $108 million, a 75 percent increase over the last 24 hours.
With the unveiling of an ambitious roadmap for 2023, the team is hoping to come back stronger and reclaim its lost stature in the crypto world. Some experts believe that the FTM prices could be up for a rally, but then again, it all comes down to the team and their efforts to stay true to their promises. Only time will tell whether the team is capable enough to pull this off.
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