The last few weeks have been just a roller coaster ride for Fantom (FTM). Since October every upward trend ends more or less in a downward trend and vice versa.
However, the context is a little different this time. December is pretty brutal for most coins. In fact, FTM is no exception. At the time of writing, the altcoin is trading for less than half of its all-time high of $ 3.41.
Fundamentally, it looks quite unfavorable for Fantom. The Protocol’s Total Value Locked (TVL) crashed four times in October, TVL hit a new high in November, slightly above previous levels, but fell again in December.
As of the beginning of this month, the protocol has lost over $ 800 million from the ecosystem. A sharp drop in liquidity is never a healthy sign.
The source: DeFiLama
In addition, the development of Fantom has stalled so far. The number of commits, stars, and open issues on Github has flattened out as developer excitement has waned over the past few days.
The source: IntoTheBlock
Given the signs of deterioration in fundamentals, the outlook for FTM is mixed at the moment. In fact, the state of some on-chain indicators also supports the above narrative.
The source: mood
ITB data also show that the addresses of the network are now also less active than in previous months – a sign that market participants are moving away from FTM. This is also confirmed by the token’s age table.
The indicator has skyrocketed a few times since the beginning of this month. Put simply, the age of consumption measures how many tokens have changed the address on a time basis since the last move.
Such spikes often signal a large amount of token movement after being inactive for a long period of time. In other words, players are leaving the market and this is never a healthy sign.
The source: mood
So with the trends above, it’s clear that bears are dominating the FTM market. If this situation continues in the next few days, it is very unlikely that the token will hold its current position and move upwards by inches.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page
Explore BlockDAG’s $1M giveaway with fifty chances to win $20,000 in BDAG coins. Get updates…
Crypto investors should get their hands on these promising tokens in the coming week
Discover the 50% bonus on BlockDAG coins celebrating their testnet launch success, alongside updates on…
The ETH price continues to suffer downward pressure due to the outflows from the Spot…
BlackRock’s iShares Ethereum ETF (ETHA) has exceeded $1 billion in assets, making it one of…
Canada extends crypto compliance deadline to the end of 2024, giving exchanges more time to…
This website uses cookies.