The Rake Review: November

In the 2021 bull run, Fantom emerged as one of the leading cryptocurrencies, driven by the “DeFi Summer” narrative that was dominating the crypto space. During this period, Fantom became a hub for decentralized finance (DeFi), propelling its native token, $FTM, from a modest $0.02 on January 1 to an all-time high of $3.46 by late October 2021. This remarkable rally elevated FTM to the 28th largest cryptocurrency by market capitalization. However, the subsequent bear market took a significant toll on FTM, with its value plummeting to a low of $0.169, representing a 95% drop from its peak in less than a year.

Fast forward to today, FTM trades at $1.05, reflecting one of the strongest recoveries since the lows of the bear market. It was an early pick in our Stormrake Morning Note back in September when it was priced at $0.50, and it has since doubled in value. Over the past fortnight, FTM has been one of the standout performers, surging by over 52% and outpacing most other cryptocurrencies. This resurgence is largely attributed to the highly anticipated migration Fantom is set to undergo in December.

The upcoming migration to the new Sonic network has garnered widespread attention due to its promise of enhanced performance and scalability. Sonic is poised to become a faster and more efficient Layer 1 blockchain, capable of processing up to 200 million transactions per day. Its cross-chain interoperability, particularly with Ethereum, opens the door to a new wave of decentralised applications (dApps), increased liquidity, and broader use cases. Adding to the appeal, the Fantom Foundation is supporting this transition with substantial financial incentives, including $120 million in grants to encourage project migration.

A key figure driving Fantom’s success is Andre Cronje, the renowned developer who serves as the CTO and Chair of the Fantom Foundation (now Sonic). Widely respected within the crypto industry, Cronje’s contributions have been instrumental in establishing Fantom as a leader in DeFi. His decision to make Fantom’s code open source has inspired numerous imitators, but none have matched Fantom’s prominence. Cronje’s importance was evident during the bear market when his announcement of stepping away from the crypto space led to a significant downturn for the Fantom ecosystem. However, his return eight months later brought renewed energy and optimism, as he expressed frustration with other blockchains failing to reach their potential. This comeback revitalized the Fantom community, which remains one of the most dedicated and resilient in the crypto world. As history has shown, a strong and loyal community is often a key ingredient for the sustained success of any project.

The official Sonic Labs token migration contract will facilitate the conversion of FTM to S starting in December 2024. This process allows users to swap FTM for S at a 1:1 ratio, with the added flexibility of swapping between the two tokens freely for the first 90 days. For those who custody their FTM with us, no action will be required—the conversion will be handled automatically. Users can simply sit back and enjoy the transition.

FTM/S should undoubtedly be on the radar of any serious crypto portfolio. With its continued leadership in DeFi, consistent upgrades, and the potential of a successful migration coinciding with a bullish market, it wouldn’t be surprising to see S surpass FTM’s previous all-time high and achieve even greater milestones.