Fantom is one of the few DeFi chains that has managed to amass a variety of protocols on its network. Presently Fantom has more protocols running on it than Solana, Terra and Tron combined. However, the issue is deeper than the number of protocols.
Fantom on Binance
Fantom’s listing on Binance U.S. on 17 December was a huge advancement for the network, which hasn’t been in the best place recently. Deposits on the exchange are now open and this is another addition to the ever-expanding adoption of Fantom.
In fact, just recently OKEx had added Fantom to its staking service. But even then the lack of participation continues to be a problem for the DeFi chain.
As it is, in less than two weeks the network has lost over 60% of all its active addresses. Consequently, the number of transactions on the chain dropped by 57% to 1.9k. The same at one point used to be at 4.5k.
Fantom active addresses | Source: Intotheblock – AMBCrypto
Also, as a result of the above-mentioned observations, the total value locked (TVL) on the chain is consistently diminishing. The TVL at the beginning of the month was well above $5.5 billion. However, it has since come down to $4.7 billion as of today.
This caused the chain to drop below Tron and Polygon and thus Fantom is now sitting at the #8 spot.
Fantom in the top 10 DeFi chains | Source: DeFi Llama – AMBCrypto
All the negative developments have forced investors to quiet down for a while now. Even whale movements have dropped to less than $20 million from its average of $100 million.
Fantom whale volumes | Source: Intotheblock – AMBCrypto
Plus, the extremely low velocity is proof that FTM holders have decided to HODL until the market sees some substantial recovery.
The one good news is that the active downtrend’s strength seems to be weakening now that the market is stabilizing slightly. As per ADX’s downward slope and the recovering prices, it seems like FTM might soon be able to flip its $1.8 resistance into support.
Fantom price action | Source: TradingView – AMBCrypto
Should this happen Fantom’s 31.3k investors could breathe a sigh of relief as their losses would start turning into profits.
