While the cryptocurrency market broadly has been the center of attention this year, Fantom (FTM-USD) — which represents the underlying reward token of a smart-contract blockchain platform — has symbolized a rising star. The FTM crypto has significantly outperformed other virtual currencies, which is notable as the sector recently encountered volatility. Subsequently, many sources have weighed in regarding Fantom price predictions.
According to CoinMarketCap, Fantom provides decentralized finance (DeFi) services to developers who use their own bespoke consensus algorithm. With its in-house FTM crypto, Fantom “aims to solve problems associated with smart-contract platforms, specifically transaction speed, which developers say they have reduced to under two seconds.”
Fundamentally, enthusiasm over the digital asset and the subsequent spark in Fantom price predictions focuses on the platform’s impending network upgrade called Sonic. Per CoinDesk, the upgrade should boost transaction processing speeds, possibly galvanizing investor interest in the FTM crypto.
Another key feature of Sonic is the integration of the so-called Fantom Virtual Machine (FVM). This protocol is programmed to boost the smart contract execution speed substantially. Essentially, the FVM enables an easier transition for those who looking to switch over from the leading smart contract network.
The Sonic upgrade should occur sometime in the spring of this year.
Fantom Price Predictions: Where Will the FTM Crypto Land?
As of this writing, the FTM crypto is trading hands at $1.13 per unit. It has nearly tripled in value over the trailing month, beating out multiple competing assets. Therefore, the topic of Fantom price predictions has dominated blockchain-related community discussions.
According to a blog post by the crypto exchange Binance, the average price of FTM may reach close to $1.17 next year. By 2026, this figure could rise to $1.226, followed by a move to nearly $1.29 in the next year. Still, these might be conservative Fantom price predictions.
Popular crypto analyst Ali Martinez believes that FTM could be aiming for a $1.44 price by the middle of this year. With the asset rising above a major resistance level of around 58 cents, there could be more freedom to run.
Perhaps the most bullish of Fantom price predictions comes from AMBCrypto, citing the possibility of a $2.85 price this year. If so, that would imply a rise of more than 150% from the current price.
Why It Matters
At this moment, FTM is only one of 16 cryptos that are in the black over the trailing seven days. Per CoinMarketCap, there are over 2.4 million digital assets traded across 735 exchanges. Long term, the historical data shows that cryptos generally correlate with the price of the original benchmark blockchain asset.
Therefore, investors should exercise caution with assets that appear to break this correlation as the tendency is to converge.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
