Fantom addresses multichain hack after 3 months: How did FTM react?

• When the hack took place, FTM’s TVL reached a 2-year low. 
• At press time, FTM’s daily chart was green, and indicators looked bullish. 

Fantom [FTM] fell victim to a multichain attack a few months ago, which plunged its TVL to new lows. Now, FTM has released an official statement in which it provided new updates about the episode. 

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

FTM bulls entered the market after the network’s statement and pushed the token’s price up by a considerable margin over the last 24 hours.

All about the Fantom multichain hack

On July 7, 2023, the Fantom multichain bridge was hacked, resulting in the loss of $126 million worth of cryptocurrency. The attacker reportedly exploited a vulnerability in the bridge’s code to withdraw funds.

When the multichain learned of the hack, the bridge was promptly shut down, and users were urged to cancel any contract approvals involving it. The hack also resulted in a massive downfall in the blockchain’s DeFi.

To be precise, after the episode, FTM’s TVL fell more than 60% as it reached a two-year low. However, later, things started to normalize.

On 29 September, Fantom posted an official statement revealing details about the hack. Notably, the network has engaged a leading blockchain intelligence firm named TRM Labs to conduct an independent investigation into the incident.

The statement further mentioned that this will speed up the process of tracing and recovering FTM users’ funds.

Fantom Foundation Statement on Multichain Incident pic.twitter.com/K4RtpTXzuw

— Sonic (@SonicLabs) September 29, 2023

Fantom bulls are here

While the blockchain released the statement, FTM bulls entered the market and pushed the token’s price up. According to CoinMarketCap, FTM’s price rose by more than 4% in just the last 24 hours.

At the time of writing, FTM was trading at $0.1995 with a market capitalization of over $559 million.

The good news was that FTM’s trading volume also increased along with its price, which looked promising. Thanks to the price uptick, the token’s 1-week price volatility also went up substantially over the last few days.

FTM’s exchange outflow also spiked quite a few times last week, which was a positive development.

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

A look at the token’s daily chart gave a better understanding of whether FTM could maintain its uptrend in the days to follow. Most market indicators remained bullish, suggesting that the token’s price might go up further.

For example, the MACD displayed a bullish upper hand in the market. Both FTM’s Relative Strength Index (RSI) and Money Flow Index (MFI) registered upticks, further increasing the chances of a continued uptrend.