Will Fantom defy the broader market sentiment? The on-chain metrics say…

Fantom was being considered a good investment option during the bear market of 2021. By marking its ATH in January 2022, Fantom seemed to be in a good spot. However, the FTM holders witnessed a shock when the coin fell by almost 50%.

To add to the woes, the token’s price trajectory of late has caused a wide-scale FUD in the market. 

Fantom fails to fight the foes

In fact, the 18.41% drop observed in the last 48 hours solidified the presence of bears in the case of Fantom.

Until this week there were some possibilities that the bearishness visible in the FTM market was momentary. And, that the altcoin would soon recover. However, after the network-wide losses continued for more than seven days, investors’ optimism faded.

Fantom price action | Source: TradingView – AMBCrypto

Additionally, FTM was in a rally during December, consequently, demand dominated the selling pressure. It’s interesting to note, when in January prices were falling, demand didn’t fade away completely.  

Amidst the bearish short-term movement, the network-wide FTM supply was also at a loss. Furthermore, it should be noted that any purchase made by investors above the $1.77 range would be more of a losing game. Surprisingly, a lot of investors have been suffering the loss already.

Fantom network-wide losses | Source: Santiment – AMBCrypto

The ripples of these losses weren’t however, limited just to the spot market. Fantom which has a significant presence in the DeFi market took a hit when it lost over $4 billion of the total value locked in the last two days. 

Notably, its TVL shot up in the last week of February when the Soldily Decentralized exchange was launched on the Fantom network.

The DEX’s TVL rose from $28 million to $2.21 billion in just four days and contributed to Fantom’s overall TVL.

Curiously, in the last seven days, multiple protocols on the chain have been losing their TVL due to the pertaining bearishness. This has also resulted in a decrease of Fantom’s TVL to $8.99 billion.

Fantom DeFi TVL | Source: DeFi Llama – AMBCrypto

Well, this is the early stage of Fantom’s encounter with the bears. It would be therefore premature to declare if there is a recovery or another drop in the picture. The only wise decision would be to observe the market before making any investment decision.