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Fantom Token Continues Downward Trend Amid Sonic Testnet Launch
The Fantom token continued its downward trend on Friday, September 6, following the launch of the Sonic testnet and a rise in transactions. The Fantom price was trading at $0.387, marking its lowest point since August 20 and a 27% decline from its highest point in August. Sonic Labs announced that the testnet is live, a phase that is expected to last for several months.
Data from the testnet indicates that the network has processed over 106 million transactions, handling approximately 11 transactions per second. The average gas per second is around 335,000. Notably, the time to finality, which is the time between when a transaction is submitted and when it is confirmed, is just 0.70 seconds. These statistics position Sonic as one of the fastest Ethereum Virtual Machines in the industry.
The developers aim to attract more creators to build on the ecosystem with this upgrade. To support this initiative, they have launched a $27 million bounty program targeting developers in areas such as payments, lending, stablecoins, and gaming.
“After the testnet phase ends, Fantom’s FTM token will transition to S. This upgrade comes at a time when Fantom has lost momentum and market share in the crypto industry.”
Fantom’s market cap has significantly decreased from over $7 billion to $1 billion. According to data, the total value locked in the ecosystem has dropped to $70 million from a record high of over $7.8 billion. Key players in its ecosystem include Beethoven X, WigoSwap, SpookySwap, and Beefy.
In the decentralized exchange industry, Fantom has a relatively small market share. Over the past seven days, its DEX platforms handled over $57.9 million, ranking it as the 26th-largest chain in the industry.
Sonic’s biggest challenge will be competing with other top chains like Tron and Solana, as well as layer-2 networks like Arbitrum and Base.
Fantom Price Under Pressure
The FTM token price has significantly declined in recent months. After peaking at $1.2267 in March, it has dropped by over 68% to $0.40. It has remained below the 50-day moving average and the upper side of the descending channel.
The path of least resistance for Fantom appears to be downward, with the next point to watch being $0.30, which is 21% below Friday’s level.
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