The cryptocurrency Fantom’s native token FTM has witnessed a striking 190% rise over the past month, establishing itself as the top-performing non-memecoin altcoin in the market. The token’s value has escalated from $0.40 to $1.16, consequently elevating its market worth to $3.29 billion and ranking it as the 44th largest cryptocurrency.
FTM’s Ascendancy Tied to Sonic Update
This sharp increase in FTM’s value is attributed to the excitement around the forthcoming Sonic update, which promises to enhance transaction processing speeds on the Fantom blockchain. The update’s prospective capabilities have piqued the interest of the investment community.
The Sonic update, slated to supersede the existing Opera mainnet by spring, has already showcased impressive results on its testnet, achieving up to 2,000 transactions per second with a 1.1-second finality time, significantly surpassing Opera mainnet’s current capabilities.
Fantom Virtual Machine Aims for Seamless Integration
The Fantom Virtual Machine (FVM) is a cornerstone of the update, designed to transcode Ethereum Virtual Machine (EVM) code while markedly accelerating smart contract execution. Its backward compatibility is set to ensure a smooth transition for developers and encourage the migration of popular Ethereum-based dApps to the Fantom platform.
Reflexivity Research highlights the considerable influence the Sonic update can have, potentially boosting DeFi platforms, blockchain gaming, high-frequency applications, and IoT sectors. While the network’s transaction capacity and efficiency are expected to see notable improvements, the current investment in Fantom’s DeFi ecosystem remains tepid, as indicated by a drop to its lowest recorded level of locked-in FTM since May 2021, according to DeFiLlama.
