- Ghost (FTM-USD) FTM crypto is one of the top performers in the industry today
- The coin is seeing a price spike thanks to speculation that a top developer is back
- Fantom, like many other networks, has been affected by turmoil in the stablecoin industry this month
Fantom is one of many networks that have been affected by recent volatility in the stablecoin industry. FTM had struggled to get its own stablecoin off the ground, so the TerraUSD (UST-USD) crash only sets it back even further. However, news of the potential return of an industry-renowned Fantom developer is once again sparking excitement among users, driving up FTM crypto prices in response.
Fantom is a Layer 1 dapp platform. Like others, it seeks to exert industry dominance as Ethereum (ETH-USD) gas fees and transaction throughput continue to lag. Since its launch in late 2019, developers have done well in attracting over 200 dapps to the platform. Fantom has also integrated Ethereum Virtual Machine (EVM) on the network, allowing Ethereum developers to easily launch dapps simultaneously on Fantom.
Yet one thing Fantom has trouble with is its stablecoin offering, Phantom USD (FUSD-USD). Founded in early 2022, FUSD is a $1-pegged token that holds its peg through a reserve of FTM crypto. Since it requires users to mint FUSD at a collateral rate of 500%, it means that FUSD is effectively an “over-collateralized stablecoin”. This in turn suggests that crypto can be a very safe option as a stablecoin.
However, as his journey has proven so far, that is not the case. And things only seem to get worse.
FTM Crypto Booms on Word Popular Developer Could Return to Help Stabilize FUSD
Since its launch, the FUSD has failed to reach its peg of $1. On the contrary, the price of the token fluctuated up and down throughout its first months of existence. As a key to the network’s DeFi platform, this instability is a huge hurdle for Fantom DeFi developers as well as FTM crypto.
The recent de-peg of the important stablecoin UST has not helped matters either. The token’s collapse ended up sinking the entire Terra Network with it. It also shook up the entire stablecoin industry, hitting peers like Attached (USDT-USD) and DEI (DEI-USD) of their ankles as well.
Of course, industry-wide volatility will not be favorable to an already struggling stablecoin; since the crash, FUSD has been stuck at a floor price of around 70 cents. Now, however, it looks like he may soon be getting help from a famous Fantom developer.
Andre Cronje had retired from blockchain development earlier this year, ending his era on the network. However, Cronje is now signaling a potential comeback. Over the weekend, the developer released an upgrade proposal to optimize the price stability of FUSD.
Clearly, Cronje’s potential return has Fantom users excited. Currently, the FTM crypto is up around 19%, even on lower volume. In the past seven days, the coin has risen over 45%.
As of the date of publication, Brenden Rearick has not held (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.