By James Davis
In the last seven days, FTM has grown by approximately 36%. Many have associated the increase with the news about Fantom’s stablecoin relaunch plans and a series of new updates regarding what the network is working on. These updates mean that Andre Cronje, a DeFi developer, is back in the crypto space.
Cronje bid his goodbyes to the blockchain industry last November; however, it appears like the developer behind Keep3r and Yearn Finance, alongside other major projects, will be making a comeback soon. Cronje is known to be the co-founder of Fantom, a layer-1 blockchain.
He will now embark on reviving fUSD, the chain’s native stablecoin. The dollar-pegged coin has not been performing as expected. It is currently trading at $0.87, and in November 2022, it went crumbling down to the $0.23 mark. The coin has dropped by 4% in the past 24 hours.
The fUSD’s mechanics, which allow users to mint this stablecoin by using an overcollateralized quantity of FTM, Fantom’s native token, collapsed and have remained that way since Fantom’s community did not believe that fUSD could be revived.
How Would Fantom Revive fUSD?
Merging the current fUSD with a new one is a straightforward process. It involves liquidating any position where the value of fUSD is greater or equal to the FTM backing it. In simpler terms, Fantom Network is getting rid of the bad debt and beginning afresh.
If the Revived fUSD shows resistance to market volatility, then it will fuel the adoption of Fantom by various dapp builders. Cronje said their goal is to make Fantom a budget-friendly and predictable blockchain for developers and users, and the new fUSD will help achieve that.
Fantom and Its New Updates
Meanwhile, FTM has increased by 227% since the start of January. The growth is attributed to the general updates from Cronje about what Fantom is up to. For example, Fantom plans to reward developers with about 14% of the network fees just for building a project on the blockchain.
In addition, Cronje announced that later this year, Fantom would introduce gas subsidies allowing users to onboard to the blockchain without necessarily needing FTM to interact with dapps.