Will Fantom Network Activity Give FTM Price A Shot In The Arm?

Christian Encila

1 year ago

3 mins read

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Fantom (FTM) investors have endured a brutal week, witnessing their holdings shrink by over 20% in just seven days. The latest blow came within the past 24 hours, with a nearly 10% plunge leaving the token hovering around $0.37.

This stark price decline stands in stark contrast to the encouraging surge in Fantom’s network activity, raising questions about what’s driving the disconnect.

While increased transactions and user engagement are typically seen as positive indicators for a blockchain project, Fantom’s price remains stubbornly bearish.

Will Fantom Network Volume Lift FTM Price?

This suggests that external factors, potentially broader market sentiment or negative news surrounding the project, are playing a more significant role in shaping the token’s value.

Investors are now left grappling with the uncertainty of whether Fantom’s robust network activity will be enough to overcome these headwinds and paint its chart green again.

FTMUSD trading at $0.39 on the daily chart: TradingView.com

FTM Price Analysis

The path forward for Fantom remains shrouded in some degree of mystery. A close examination of technical indicators and further analysis of the broader market and project-specific news will be crucial for deciphering the token’s next move.

Fantom (FTM) has faced a recent price slump, prompting closer investigation into investor behavior. Analysis reveals a contradictory picture.

While FTM tokens held by whales and large transactions exceeding $100k have both seen a decline, suggesting potential long-term support, a different story unfolds regarding exchange activity.

Source: Santiment

Supply on exchanges has steadily risen since December 23rd, indicating increased selling pressure and a likely contributor to the current price dip.

Meanwhile, FTM held outside of exchanges has dwindled, hinting at potential accumulation by long-term investors.

This divergent picture suggests a temporary imbalance between selling and buying forces, pushing FTM lower in the short term.

However, the underlying support from stable top holdings and reduced whale activity might offer a glimmer of hope for a potential rebound in the longer term.

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

As the token faced a decline in value, Fantom Insider took to Twitter to unveil a notable accomplishment for Fantom in 2023.

The tweet highlighted that, despite the token’s temporary downturn, FTM had secured an impressive position, ranking third in terms of unique addresses among Ethereum Virtual Machine (EVM) blockchains for the year.

This disclosure positioned Fantom closely behind established entities like Polygon and Binance Chain, signaling a noteworthy achievement for the platform in expanding its user base and ecosystem engagement throughout the course of 2023.

(Featured image from Zipmex)

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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