Fantom Investors Face Price Decline
Fantom (FTM) investors have experienced a significant decrease in value, with their holdings shrinking by over 20% in just one week. In the past 24 hours alone, the token has plunged nearly 10%, leaving it at around $0.37.
Disconnect Between Network Activity and Price
Despite the surge in Fantom’s network activity, the token’s price remains bearish. This raises questions about what is driving the disconnect between increased transactions and user engagement and the token’s value.
External Factors Impacting FTM Value
External factors, such as broader market sentiment or negative news surrounding the project, may be playing a significant role in shaping Fantom’s token value. This uncertainty leaves investors wondering if the network activity will be enough to overcome these headwinds and drive a price rebound.
Supply on Exchanges Increases, FTM Held Outside Dwindles
The supply of FTM on exchanges has been steadily rising, indicating increased selling pressure and contributing to the current price dip. Conversely, FTM held outside of exchanges has decreased, suggesting potential accumulation by long-term investors.
Potential Rebound in the Longer Term
Although there is a temporary imbalance between selling and buying forces pushing FTM lower in the short term, stable top holdings and reduced whale activity offer hope for a potential rebound in the longer term.
Achievement Amidst Decline
Despite the recent decline in value, Fantom Insider shared on Twitter that FTM had achieved an impressive position among Ethereum Virtual Machine (EVM) blockchains for 2023. Ranking third in terms of unique addresses, Fantom’s growth and engagement throughout the year have positioned it closely behind established entities like Polygon and Binance Chain.
Hot Take: Fantom Struggles with Price Decline Despite Network Activity
Fantom investors are facing a significant price decline, while the network’s activity remains encouraging. The disconnect between increased transactions and user engagement and the bearish price suggests that external factors are influencing FTM’s value. With supply on exchanges rising and FTM held outside decreasing, there is a temporary imbalance between selling and buying forces. However, stable top holdings and reduced whale activity offer hope for a potential rebound in the longer term. Despite the decline, Fantom’s achievement of ranking third in unique addresses among EVM blockchains highlights its growth and engagement throughout 2023.
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