Key Points
- Fantom is approaching the launch of its Sonic upgrade, which will increase transaction speed and include Ethereum in its development.
- Despite a recent price increase, Fantom’s token reaching $1 in the short term could be a challenge.
Fantom, a Layer-1 blockchain, has unveiled key information about its imminent Sonic upgrade.
Sonic Upgrade and Ethereum’s Role
The Sonic upgrade is the next version of Fantom, designed to enhance the number of Transactions Per Second (TPS) to 2000. This upgrade also highlights the role of Ethereum (ETH) in its development.
The project plans to introduce a new layer-1 and layer-2 chain, and token holders will have the ability to bridge assets to Ethereum. The Sonic chain will be a layer-1 platform connecting to Ethereum via a unique layer-2 bridge. This connection will allow Sonic to access substantial amounts of liquidity, users, and protocols, merging the low cost, scalability, and speed of a layer-1 with the security of a layer-2 bridge for access to native ETH and other assets on Ethereum.
Fantom’s Token Migration and Price Movement
Fantom has previously stated its intention to launch a token for the Sonic upgrade, denoted as “S”. FTM holders can migrate their tokens to S at a 1:1 ratio using Ethereum.
FTM’s price was $0.86 at the time of writing, a 6.22% increase in the last 24 hours. This price surge could be associated with the growing optimism towards the upgrade and token introduction. However, if the current metrics continue to decline, it might be challenging for FTM’s price to reach $1.
Fantom’s Total Value Locked (TVL) was $133.38 million according to DeFiLlama, indicating an improvement in the health of protocols operating under the chain. Despite this, the value remains low compared to 2022 when it reached an impressive $7 billion. It might be difficult for Fantom to reach that level of locked assets again. Although, the launch of the Sonic upgrade could restore trust in the chain and potentially result in a significant influx of deposited assets.
