- Fantom has experienced a significant increase in network activity and unique addresses, ranking third among top EVM blockchains.
- Despite the recent price drop, market indicators hint at a possible trend reversal for FTM.
Fantom’s Network Surge Amid Price Challenges
In the face of a tumultuous market in 2023, Fantom (FTM) has demonstrated notable resilience, showcasing substantial growth in network activity. Despite a recent price slump that saw FTM’s value decrease by nearly 25%, the blockchain platform has been a beacon of growth, adding over 128 million new unique addresses and securing the third spot among top EVM blockchains.
Market Pressures vs. Network Strength
The past week was challenging for Fantom as its value declined significantly. CoinMarketCap data indicated that FTM‘s price fell by more than 23% over seven days, with a 8.5% drop in just 24 hours. At this juncture, Fantom’s market capitalization hovered over $1 billion, with the token trading at $0.3694.
An analysis of Santiment’s data revealed increased FTM‘s Supply on Exchanges, coupled with a decrease in its Supply outside of Exchanges, indicating a prevailing selling pressure.
Whale Movements and Investor Sentiments
Whale confidence in FTM appeared to wane, as evidenced by a reduction in both supply held by top addresses and Whale Transaction Count. Whalestats ranked Fantom 27th among cryptocurrencies sold by the top 100 ETH whales in the last 24 hours, further underscoring the cautious sentiment among large-scale investors.
Fantom’s 2023: A Year of Network Expansion
Despite the token’s downward trend, Fantom’s network witnessed significant growth in 2023. Fantom Insider highlighted that FTM trailed only behind Polygon [MATIC] and BNB Chain [BNB] in terms of new unique EVM blockchain addresses. This achievement is a testament to Fantom’s expanding adoption and user base.
Despite the bad market condition in 2023, @FantomFDN has been growing and shining like a phoenix from the ashes 📈
👻 #Fantom has had 128M+ new unique addresses in 2023 and is ranked in 3rd place compared to other top EVM blockchains 🎉
😍 With the mainnet launch of… pic.twitter.com/oA27loqrtf
— Fantom Insider (@fantom_insider) January 7, 2024
With the planned launch of the Fantom Sonic mainnet in 2024, the blockchain is poised for further advancements. Artemis’ data showed a spike in FTM‘s daily active addresses on January 6, 2024, along with an increase in daily transactions, suggesting sustained network engagement. However, Fantom’s Total Value Locked (TVL) experienced a decline throughout the week.
Indicators of a Potential Rebound
Despite the current market situation, indicators such as the Relative Strength Index (RSI) being in the oversold zone suggest a possible increase in buying pressure, potentially leading to a price rise for FTM. The token’s Money Flow Index (MFI) approaching the oversold territory and an uptick in its Chaikin Money Flow (CMF) further indicate the possibility of a northbound price movement in the near future.
In conclusion, while Fantom’s price has faced challenges, the blockchain’s growing network activity and adoption offer a promising outlook. Market indicators provide hope for a potential trend reversal, painting a picture of resilience and potential recovery for Fantom in the dynamic cryptocurrency landscape.