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Assessing the why and how of FTM ‘outperforming’ several other cryptos

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  • FTM’s active addresses and transactions have declined over the last few weeks 
  • Investors’ interest increased as accumulation rose 

Over the last 24 hours, Fantom [FTM] has managed to outperform several other cryptos with a larger market capitalization in terms of its price action. In fact, at press time, FTM was trading at $0.4196 with a market cap of more than $1.16 billion, following a 24-hour hike of over 7% on the charts. 

Read Fantom’s [FTM] Price Prediction 2023-24

And the contributing factors are…

The prevailing bullish market sentiment has definitely played a major role in the price pump. Nevertheless, a few other factors should also be considered when examining what helped FTM outperform the rest.

For instance, Fantom recently shared its general update report, highlighting the major developments in its ecosystem. One of these major updates was the launch of Fantom’s go-opera version 1.1.2-rc.5 mainnet release. This upgrade included enhancements to the processing of batched genesis blocks, the management of customizable databases, the parallel search of EVM logs, and P2P protocol improvements.

Here, it is also interesting to note that Fantom’s Ecosystem Vault hit 200,000 FTM. To clear the air, the Vault is a fund created with the goal of empowering builders on Fantom by providing a decentralized avenue for funding initiatives, concepts, and creations through a community-driven decision process. 

A decline in network activity

While FTM’s price action remained bullish, network activity seems to have declined lately. In fact, Dune’s chart revealed that the number of successful transactions have been declining for quite a few months now. Also, active addresses registered a decline in the recent past, further proving less activity on the network.

Source: Dune

Is investors’ interest declining too?

Despite declining network activity, investors’ interest in FTM has risen over time, which is evident from its metrics.

For instance, FTM’s supply held by top addresses increased considerably over the past month, indicating investors’ confidence. Network growth also remained consistently high, suggesting an increased number of new addresses were used to transfer the token. 

Source: Santiment

How much are 1,10,100 FTMs worth today

Can FTM continue to outperform the rest?

FTM investors might have yet another reason to celebrate as several on-chain metrics seemed to suggest that FTM can continue its price surge. FTM’s supply on exchanges registered a decline while supply outside of exchanges went up. This was a sign of sustained accumulation, which is by and large a bullish signal.

Moreover, FTM’s MVRV Ratio also recovered over the last week, suggesting a further uptrend. Finally, FTM’s demand in the derivatives market remained relatively high – Something evidenced by its Binance funding rate. 

Source: Santiment

 

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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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