Fantom DEX volume surges, proves one exit is not the end
- The DEX volume on the protocol increased 13x from its value seven days back.
- Also, Fantom is slowly gaining back the trust of market participants after recent unfortunate incidents.
Fantom [FTM] may have had to cope with the closure of one of its DEXes but that did not stop the DEX volume on the protocol from increasing. According to digital asset research firm ASXN, Fantom’s DEX volume rose to $143.1 million in the last seven days.
Realistic or not, here’s FTM’s market cap in ETH terms
The increase was an incredible 1302.7% hike from a mere $10.2 million a week ago. Furthermore, the hike in volume suggested a notable increase in the utility of applications under the Fantom ecosystem.
All thanks to SpookySwap and the rest
From an in-depth look at the protocol, SpookySwap was the main actor that influenced the rise. SpookySwap is an Automated Market Maker (AMM) that provides constant liquidity for traders to trade against a liquidity pool.
From DefiLlama’s data, SpookySwap registered an 181.50% increase in fees generated. This made the DEX the ninth-highest fee earner in the DeFi landscape. This DEX volume increase depicts some sort of stability in the Fantom protocol.
Just a few weeks back, the project had to deal with the forced shutdown of SpiritSwap, the former top DEX on Fantom. Around that time, the SpiritSwap team mentioned the inability to continually cover operational costs and the Multichain hack as major reasons to exit the sector.
While Fantom’s Total Value Locked (TVL) was also affected negatively at that time, the value has slightly improved in the past 30 days. At press time, the TVL was $57.89 million— an 8.34% increase in the last month.
The TVL measures the value of assets locked or staked in a protocol. The higher the TVL, the more trustworthy the decentralized Application (dApp) is perceived to be, and vice versa.
Therefore, Fantom’s mild TVL rise implies that the protocol was gaining back the trust of market participants. And this led to an increase in unique deposits into chains operating under its protocol.
Skin in the game
In terms of development activity, Santiment showed that Fantom was making moves in the upward direction. The development activity measures the rate of public GitHub repositories connected to a project.
A decrease in development activity implies that code commits to a project are not very present. However, when the metric increases, it means that developers are committed to polishing a network, as it was with Fantom.
How much are 1,10,100 FTMs worth today?
Besides the development activity, FTM’s social dominance also increased. At the time of writing, the social dominance was 0.226%.
By looking at the percentage of discussion of one asset compared to others, social dominance measures that hype and attention gained. Thus, the increase suggests that eyes are slowly being moved back in Fantom’s direction.