Fantom reaches a new milestone, but will it help FTM make its way through Q2
- FTM’s daily active users and transactions declined
- On-chain performance was not up to par, but market indicators were slightly bullish
Fantom [FTM] recently reached a new milestone by having over 50 million unique addresses on the network. This was a laudable achievement as the year on year growth exceeded 1700%.
✅ JUST IN: The amount of active address on @FantomFDN have reached over 50M in total
? 1758.28% in YoY
— Fantom Insider (@fantom_insider) April 7, 2023
Read Fantom’s [FTM] Price Prediction 2023-24
Here is the catch
While the growth of unique addresses looked very promising for the blockchain, the same was not true for the number of daily active users. Token Terminal’s data revealed that FTM’s daily active users registered a decline over the last 30 days.
A similar trend was also seen with the network’s successful transactions, which also went down. Considering the situation at hand, will increased numbers of unique addresses be enough for Fantom to maintain its health in Q2 2023?
Checking up on Fantom
A closer look at Fantom’s on-chain performance pointed out quite a few factors that were not in the blockchain’s favor. For example, FTM’s development activity plummeted over the last 30 days. This was by and large is a red signal for a blockchain.
Not only that, but negative sentiments around FTM registered a spike, suggesting less confidence among investors in the network.
Will Q1’s top gainer perform in Q2?
Fantom Insider pointed out in a tweet posted on 6 April 2023 that FTM ranked third on the list of cryptocurrencies by percentage increase in price during Q1 2023.
? Check out the Ranking Blockchain by Percentage Increase in Price in Q1 2023
? @FantomFDN is growing well with a growth rate of up to 110.62%
The market is pumping!
— Fantom Insider (@fantom_insider) April 6, 2023
However, the growth seemed to have halted. The declining momentum can be attributed to the current market conditions, where most cryptocurrencies are struggling to push their prices up.
As per CoinMarketCap, FTM’s price increased just over 1% in the last seven days. At the time of writing, it was trading at $0.459 with a market capitalization of more than $1.2 billion.
Days to get tougher, suggests..
Santiment’s data revealed that a few of the metrics suggested the possibility of a downtrend over the coming days. FTM’s exchange inflow spiked a few days ago, which could be taken as a bearish signal.
The supply held by top addresses also declined slightly compared to the previous month, indicating less confidence among whales in the token. Nonetheless, FTM’s network growth was up, which meant that more new accounts were used to transfer the token.
Realistic or not, here’s FTM market cap in BTC‘s terms
Hold on! Here comes the good news
Though the metrics were bearish, Fantom’s daily chart showed signals of recovery. The Chaikin Money Flow (CMF) registered an uptick, which was a development in the buyers’ favor.
The Exponential Moving Average (EMA) Ribbon displayed a bullish crossover as the 20-day EMA flipped the 55-day EMA. FTM’s Money Flow Index (MFI) was also restive above the neutral mark, giving hope for a price increase in the coming days.