Fantom Network’s native cryptocurrency Fantom token (FTM) is up more than 50% despite facing some lingering issues on its decentralized network. The smart contracts executing platform avoided a huge downturn because of a fault in its blockchain network that resulted in the stoppage of new block creation for more than 7 hours.
Fantom’s Big Gains
FTM is currently among the top 50 cryptocurrencies in the world with a market capitalization of around $1.5 billion. Currently, the price is hovering around $0.6. This is a considerable amount and traders are going haywire over the asset. This is especially surprising because the parent network suffered a long outage recently.
Just a few days ago on February 25, the network closed down for more than seven hours. It all began when a couple of nodes/validators slowed down their outputs. There are over 39 validators/nodes on the Fantom Network. While normally, in other blockchain networks, this kind of activity wouldn’t have caused problems, for Fantom it was different because over here, more than one-third of all staked FTM tokens were locked in these nodes, thus causing major issues for the running of the network. As a result, it stopped generating blocks altogether and stayed that way for a while. It took a lot of time to solve the crisis situation.
According to an announcement from Fantom:
On Thursday, February 25 2021 at 3.04 PM UTC, Fantom Opera mainnet halted new block confirmations, which resulted in a temporary outage. The core developer team and Fantom validator community immediately responded and successfully resumed the network within 7 hours.”
Fantom Gains Big in February
However, instead of taking a big hit, the cryptocurrency is now at record highs, posting a 600% increase during February alone. While the price did halve after the shutdown, the price index has largely recovered and is now nearing its all time high again. It has especially risen more than 50% during the last 24 hours.
But, on the other hand, investors should be careful with coins that are showing this level of volatility in the markets. While FTM has shown considerable growth over the last month, the overall rise has been explosive and may require some price correction in the near future before continuing its move upwards. Fantom smart contracts feature may offer some solutions in the near future but it is still in its early stage of development and therefore, investors need to be really careful about putting their money in it.
Image source: Fantom Foundation