Can Fantom Ignore Broader Market Sentiment?
Fantom is seen as a promising investment option during the 2021 bear market. With ATH hit in January 2022, this altcoin appears to be in good shape. However, FTM holders can’t help but be shocked as the price is down nearly 52% so far.
Additionally, the token’s trajectory caused several large FUDs in the market.
FTM cannot defeat the enemy
In fact, the 18.41% drop over the past 48 hours has further enhanced the presence of bears in the FTM market.
So far this week there are some signs that the price drop in the FTM market is temporary and will soon recover. However, after consecutive network-wide losses of more than 7 days, investor optimism gradually faded.
FTM Price Action | Source: TradingView
Also, FTM price surged in December, so demand pressure is now dominating selling pressure. It is interesting to note that prices fell in January, but demand did not completely disappear.
In the course of the short-term fall in prices, the network-wide supply of FTMs also fell. Additionally, it should be noted that any buy made by investors above the $1.77 area is a game with more losers. Surprisingly, many investors suffered losses.
Real Win/Loss Ratio on Fantom Network | Source: Santiment
However, the impact of these losses is not limited to the spot market. With a significant presence in the DeFi market, Fantom lost over $4 billion in total value in the last 2 days.
Notably, TVL rose in the last week of February when the decentralized exchange (DEX) Soldily was launched on the Fantom network.
This DEX’s TVL grew from $28M to $2.21B in just 4 days, contributing to Fantom’s overall TVL boost.
Oddly enough, many on-chain logs have lost TVL in the last 7 days due to the ongoing downtrend. This also lowered Fantom’s TVL to $8.99 billion.
TVL DeFi Fantom | Source: DeFi Llama
In short, this is just the beginning of Fantom’s encounter with the bear. Therefore, it will be too early to announce a near-term price recovery or decline. The only wise decision is to study the market before making any investment decisions.
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According to AMBCrypto