Assessing the impact of Fantom’s latest initiative on its network activity
- Fantom announced the launch of its first-ever vault round worth 750 thousand FTM.
- On-chain performance was on par, and FTM’s demand in the futures market was high.
Over the past few months, Fantom [FTM] witnessed a considerable surge in its network activity. But the trend changed since the beginning of last month as its daily active addresses registered a decline. However, Fantom has announced the commencement of its Vault round 1, which can potentially help the blockchain’s fundamentals rise over the coming months.
Read Fantom’s [FTM] Price Prediction 2023-24
Fantom’s network fundamentals are dropping
A few weeks ago, Fantom became a topic of discussion as its network activity soared. However, over the last few days, things started to change. This was evident from the drop in its daily active addresses since September. Not only did its active addresses drop, but the blockchain’s TVL also followed the same declining trend.
It was interesting to note that despite a drop in its active addresses, Fantom’s daily transactions continued to move up.
A decline was also seen in terms of the blockchain’s captured value. Artemis’ chart pointed out that both FTM’s fees and revenue have been going down for the last 30 days, which was concerning for the blockchain’s overall health.
Fantom’s latest initiative can have a positive impact
Though Fantom’s network activity declined, it has announced the commencement of a new program that can help turn the situation around in the coming months.
The blockchain announced the launch of its first Vault Round worth 750 thousand FTM. The motive behind it was to provide funds to the most popular projects on the blockchain.
Estfor Kingdom is a browser-based, idle adventure with in-game economy.
— Fantom Foundation (@FantomFDN) September 4, 2023
This will allow projects to improve their offerings and help new users onboard the blockchain. The official announcement mentioned that the Vault collects 10% of all transaction fees on Fantom, which it then distributes through community funding rounds that allow users to vote on their favorite projects without pledging their own funds.
There were 9 projects participating in the round, such as Fantom Lords, WigoSwap, Beethoven X, and others.
FTM acts differently of late
Amidst this, FTM turned out to be among the few cryptos that managed to paint their weekly chart green. According to CoinMarketCap, FTM was up by more than 2% in the last seven days.
At press time, it was trading at $0.2029 with a market capitalization of over $568 million. A look at Fantom’s metric pointed out a few things that went in its favor.
Realistic or not, here’s FTM’s market cap in BTC terms
For example, its MVRV Ratio improved slightly last week. FTM’s popularity increased, as evident from the spike in its social volume. Additionally, the whales were confident in the token as FTM’s supply held by top addresses went up lately.
FTM’s Binance funding rate was also green. This meant that the token’s demand in the derivatives market was high. However, its velocity dropped, indicating that FTM was used in transactions less often within a set time frame.