phantom [FTM]: More addresses and transactions, but what about DeFi TVL

  • Fantom has seen the ecosystem grow in the last month.
  • However, the price of FTM continued to plummet.

Following the launch of the go-opera 1.1.2-rc.5 mainnet upgrade on March 6, the blockchain platform Fantom [FTM] Seeing a spike in user activity on-chain.

On March 7, Fantom registered 187,237 active users, the highest number of daily active users this year, according to data from Token Terminal. This is a 322% increase from the 44,324 daily active users who interacted with the blockchain on March 6.

Fantom Ecosystem Last Month

Some of Fantom’s key ecosystem metrics have grown over the past 30 days. For example, the number of unique addresses on-chain jumped 5.62% to nearly 45 million as user activity increased last month.

Additionally, the network has seen a 33% increase in transaction fees and revenue over the same period. As social hype increased last month, the protocol recorded an 11.4% rebound in social mentions of its social dominance.

Despite gains in Fantom’s key ecosystem metrics last month, its DeFi landscape has been dealing with a drop in the value of assets locked (TVL) on the protocol since early February.

After peaking at $571.62 million on Feb. 2, Fantom’s TVL fell 32%.

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

According to DefiLlama, the network has a TVL of $386.85 million at the time of writing. In fact, only 20 of Fantom’s 255 DeFi protocols have seen an increase in TVL over the past month.

Most of these protocols have experienced significant drops in the value of assets sent to their smart contracts over the past 30 days, with many seeing double-digit drops.

Source: DefiLlama

Under the influence of the bear market

Selling for $0.3195 per FTM token at press time, the alt has lost 37% in value over the last month. An assessment of price action on the daily bar chart confirms the start of a new bear market cycle on February 7.

FTM’s Moving Average Convergence Divergence (MACD) indicator is thereafter only marked by a growing red histogram. At the start of a new bear cycle, FTM bears regained control of the market, and increased token distribution eventually caused the price to pull back.

The Directional Movement Indicator (DMI) indicates that FTM bears are back. At press time, the negative directional index (red) was above 28.07 and the positive directional index (green) was above 11.80, confirming that sellers were overwhelming buyers at press time.

Realistic or not, this is FTM market cap in BTC terms

Finally, at the time of writing, the coin’s Chaikin Money Flow (CMF) is below its centerline, returning a negative value of -0.12. This indicates increased liquidity in the FTM market, so belief in price reversals must be changed.

Source: FTM/USDT on TradingView

Source of information: Compiled from AMBCRYPTO by 0x Information.Copyright belongs to the author, without permission, may not be reproduced

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