Ethereum is arguably the most used blockchain in the cryptocurrency space. Developers build smart contracts on the chain to create blockchain-related products, such as games, NFTs, and even decentralized finance protocols. One of the biggest challenges with using Ethereum is the high gas fees. Traders spend a lot of cryptocurrencies to pay for gas, making it necessary to find an alternative. Fantom is a relatively new blockchain, slowly gaining traction. This network also supports smart contracts so that creators can build on the blockchain. While Ethereum might be one of the most popular networks in the space, transactions are usually slow and expensive. It’s safe to mention that creators have continually spoken on Eth 2.0, which they promised would solve the scalability issues. For now, the community is getting interested in other chains that support smart contracts.
What Is Fantom?
Fantom is a public blockchain that supports smart contracts. It also has a token, FTM, powering the ecosystem. Since the network’s launch in 2019, it has undergone numerous changes, helping it support different kinds of contracts. Before building on a blockchain, it’s imperative to understand how scalable and affordable its transaction fees are. Because Ethereum’s fees grew too expensive due to the traffic on the chain, developers created alternatives that settled transactions at a cheaper rate.
According to the official website, Fantom is a high-performance and EVM-compatible platform. It’s safe to mention that it is also a layer 1 blockchain, which means it is the primary network in the system. Experts believe that layer 1 chains are usually more secure than layer 2 networks. It also strives to be permissionless and decentralized. Decentralization is a common term in the crypto space. In this protocol, decentralization means that the protocol is not controlled by a central authority but by community members. This is largely different from mainstream organizations that make decisions on behalf of people. As a decentralized protocol, it shares power over many people.
What Happened To Andre Cronje?
The Fantom ecosystem is experiencing positive price movements after some speculations reveal that Andre Cronje may be returning to the decentralized finance space. Cronje is one of the biggest names in DeFi, and he has pivoted the industry’s growth over the years. Andre Cronje founded Yearn Finance—a DeFi platform that allows users to maximize their earnings through lending and trading. Some people even call Cronje the Satoshi Nakamoto of DeFi due to his noticeable influence. When he announced that he was leaving DeFi some months back, the whole space panicked, leading to some negative price movements.
The founder had previously said he was leaving the space some months ago but continued to contribute to numerous projects. He complained that building in DeFi is not easy, but users are entitled, and the projects are expensive to implement. Recently, Andre Cronje announced that he was leaving the blockchain space for good, so he is not looking to contribute to the defi and crypto space. Yearn finance token was one of the biggest losers due to the fallout.
The token lost 10% of its value but quickly returned to the previous price after some days. Banteg, one of the project developers, explained that Cronje had not worked on the protocol for a year. He added that 50 full-time contributors are helping the project. Cronje’s exit from the space was a shock to DeFi enthusiasts. He has contributed to numerous projects and is a notable shareholder in Yearn Finance. Yearn Finance is still one of the most popular DeFi-related projects in the space operating as a decentralized autonomous organization.
Cronje Submits A fUSD Optimization Proposal
New speculations show that Cronje, a software developer, maybe returning to the blockchain industry. Before leaving the space, he was an active contributor to Fantom. Recent news shows that he submitted an fUSD optimization proposal to help the stablecoin regain stability. His latest move raised numerous speculations, with many people believing that he returned to DeFi/crypto. Also, a popular Fantom address, which people believe belongs to the developer, has received over 100 million FTM within 14 days. This move makes it possible that Yearn Finance founder may be returning to contribute to some blockchain-related projects. Some days ago, UST—a popular stablecoin, suffered a severe price drop. The token, which should be worth $1, is far below its previous price point.
Terra’s Woes
Terra’s Luna also suffered negative price movements attributed to UST’s drop. The token, around $0.00016, is far from its previous price point. Some weeks back, Terra was worth over $80, but now, it struggles to reach $1. This incident led to panic in the space. Many USDT holders sold their tokens, affecting the stablecoin’s price. While USDT is back to its original price, UST’s future is uncertain. When UST lost its peg to the dollar, many stablecoins suffered, and fUSD was one of them. Fantom’s official Twitter page explained that fUSD is not UST, but many people are skeptical about over-collateralized tokens, especially stablecoins. Still, many people are unsure if the new proposal can help it regain its peg to the dollar.
Effect Of Cronje’s Contribution
Cronje’s contribution has done some good for the token. Now, fUSD is currently valued at $0.7, which shows that people are getting interested in the coin. FUSD has previously fallen to around $0.5 due to sell-offs, but it may return to $1. Blockchain technology is complicated, and with stablecoins, things are a lot harder to predict. Stablecoins are supposed to be cryptocurrencies that stay pegged to an asset or a currency, giving them some stability. However, UST’s recent fall shows that things can go wrong even when you hold these cryptocurrencies. While UST is still far from its price point, it’s unlikely that it will make a comeback at this rate.
What Is FUSD?
FUSD is a stablecoin, a cryptocurrency that is not as volatile as other crypto types. Cryptocurrencies are usually pegged to real-world assets and currencies, including gold, euros, and the dollar. When pegged to these assets, it retains stability, helping users enjoy certain benefits because of their stable nature. Most times, enthusiasts can save in stablecoins and send them to other users without worrying about price falls. It is also safe to mention that fUSD is a stablecoin found on the Fantom network.
Fantom is a blockchain network that strives to remain scalable and affordable, especially when executing transactions. Fantom described fUSD as over-collateralized tokens, helping them stay stable. However, recent happenings with UST contributed to fear amongst fUSD holders. Many people are afraid of losing money on over-collateralized tokens, which happened with UST. Stablecoins make it easier for investors and holders to protect profits made from investments. When they take their profits, they quickly convert part of their token to a stablecoin. However, the current issues with stables make it difficult for people to rely on them.
Should You Buy fUSD?
One of the most asked questions is whether one should buy fUSD, especially during its volatile state. The best response is to do your research before purchasing any token. Even when you conduct adequate research, you are still at some risk. Situations are sometimes unpredictable in the asset space. People lose money, so it’s best to invest what you can afford to lose. Remember, conduct research on your preferred project and invest what you can lose. This helps you minimize losses even if things go south. Also, many players are hoping to keep the fUSD stable, which may improve its chances of returning to $1. And since it’s below its regular price, buying it now may help you record profits.
Conclusion
Due to UST’s fall, the digital asset space is currently volatile. The stablecoin fell from $1 due to technical issues, leading to Luna’s supply. The blockchain continued minting more Luna tokens, contributing to the free fall of the native token. FUSD is another stable that has recorded price falls. However, the stablecoin grew by almost 50% after some people believed that Cronje was returning to crypto. Cronje—a software developer, submitted a proposal to help the coin return to the $1 point. While things are uncertain now, enthusiasts believe that the developer may be making a comeback.
