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Fantom: Key metric declines, will FTM bear the brunt?

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Fantom: Key metric declines, will FTM bear the brunt?
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  • FTM’s TVL declined by 8% in the last week.
  • DeFi space witnessed growth, but metrics and indicators were bearish.

Fantom Insider recently posted the Fantom [FTM] network’s weekly report, which highlighted quite a few interesting metrics. A major negative development was a decline in Fantom’s Total Value Locked (TVL), which dropped by over 8%. As per the data, FTM’s TVL declined from $764 million to $719 million over the past seven days. 

The tweet also mentioned quite a few other key metrics, such as total transactions, which exceeded 2.8 million. It was interesting to note that while the network’s unique addresses increased considerably, FTM’s daily transactions declined in the last few days. Nonetheless, though the network’s TVL declined, FTM’s DeFi space registered steady growth. 

Realistic or not, here’s FTM market cap in BTC’s terms

DeFi ecosystem on a steady growth 

Covalent, a unified API provider, recently pointed out that Fantom’s performance in 2023 has been decent as its number of transactions remained relatively on the higher side this year. The tweet also showed that there has been a considerable increase in the number of monthly users in the network, reflecting its increased adoption and usage. 

Can Fantom’s DeFi growth help FTM?

While the aforementioned datasets looked promising for the network, FTM’s performance on the price front was not up to par. According to CoinMarketCap, FTM registered a weekly price decline of over 14%, and at press time, it was valued at $0.4529 with a market capitalization of over $1.25 billion.

Santiment’s chart further revealed quite a few factors that can be blamed for this performance. For instance, FTM’s trading volume declined considerably, suggesting less interest from investors. FTM’s exchange outflow also declined, which was a bearish signal.

The token’s popularity also took a blow as its social volume went down. As per LunarCrush, bullish sentiment around FTM declined by 16% last week, suggesting less confidence among investors in FTM.

Source: Santiment

How much are 1,10,100 FTMs worth today?

Can this worsen the situation? 

FTM’s daily chart gave more reasons for concern and suggested the possibility of a further downtrend in the coming days. For example, the Money Flow Index (MFI) registered a sharp decline and was heading further below the neutral mark.

The Relative Strength Index (RSI) followed the same trend, further increasing the chances of a price decline. However, FTM’s Chaikin Money Flow (CMF) displayed a divergence, as it registered an uptick while its price dropped. 

Source: TradingView

 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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