FTM jumps 12% as Sonic Labs targets $11T lending market with new blockchain feature

Fantom’s native token, FTM, has surged by over 12% in the last day, driven by Sonic Labs’ strategic update.

This increase has made Fantom (FTM) the best-performing cryptocurrency among the top 100 digital assets by market cap, pushing its price from $0.43 to $0.48.

The token’s market value rose to $1.36 billion, its highest since Aug. 27, making it the 59th largest digital asset globally, according to CoinGecko data.

One of the main catalysts behind FTM’s recent surge was a blog post by Sonic Labs CTO Andre Cronje on September 9 announcing plans for the Sonic blockchain to offer credit scores for digital wallets. The startup aims to tap into the global unsecured credit market, which is valued at over $11 trillion.

Another potential driver of FTM’s price is Sonic’s newly released testnet, which achieved transaction finality in just 720 milliseconds, marking a significant milestone. In the context of blockchain, finality means that once a transaction is confirmed and recorded on the blockchain, it cannot be changed or reversed.

The renewed optimism saw trading volumes double in 24 hours, further fueling bullish momentum for FTM.

According to data from Coinglass, FTM’s daily open interest has increased by 33% to $162.46 million at the time of writing. This, combined with the increase in trading volume, suggests an increase in investor activity, potentially adding fuel to FTM’s ongoing rally.

Looking at FTM’s price activity, the token is approaching $0.4825 on the daily chart and is poking the upper Bollinger Band. The Relative Strength Index at 60 indicates an uptrend with room for further growth before reaching the overbought region.

FTM price, Bollinger Bands and RSI chart – Sep 10 | Source: crypto.news

After a steady rise above the mid-range level at $0.4381, the recent increase in trading volume indicates strong market interest and suggests bullish potential.

For investors and traders monitoring FTM, the immediate resistance to watch is the upper Bollinger Band at $0.5296. A sustained break above this level could pave the way for more gains, potentially targeting higher resistance at $0.60. If FTM continues on this trajectory, it has the potential to double its current value and approach the $1 milestone.

Major liquidation levels

According to Coinglass, the critical liquidation thresholds for FTM currently sit at around $0.471 on the low side and $0.503 on the high side, indicating a high level of leverage among day traders.

Source: CoinGlass

If market dynamics change and the FTM price drops to $0.471, it could trigger liquidations of approximately $2.9 million in long positions. Conversely, if market sentiment turns positive and the price rises to $0.503, it could trigger liquidations of approximately $2.02 million in short positions.

At press time, data showed bears taking control and the potential for long positions to be liquidated at lower levels.