Santiment, a prominent cryptocurrency analytics company, recently analyzed the performance of Fantom ($FTM).
Here is a little introduction by the Fantom team to this exciting cryptocurrency project:
“Fantom is a high-performance, scalable, EVM-compatible, and secure smart-contract platform. Fantom’s mainnet deployment—Fantom Opera—is built on Fantom’s consensus mechanism, Lachesis. Fantom is a leaderless, asynchronous, and byzantine fault-tolerant Layer 1 blockchain tech protocol. Lachesis enables Fantom to deliver fast transaction speeds, low transaction costs, and deterministic finality. This is achieved while remaining permissionless, decentralized, and open-source...
“Lachesis represents one layer, the consensus, of the blockchain tech stack and can be plugged into any distributed ledger.
Lachesis powers Fantom’s Opera mainnet deployment, that uses the Ethereum (ETH) Virtual Machine (EVM) and it’s compatible with Ethereum (ETH). The modularity makes Fantom exceptionally flexible. Developers can port their existing Ethereum-based dApps on Fantom Opera mainnet in a matter of minutes, substantially upgrading the performance and reducing the costs.“
In a post in Santiments’ Insights blog that was released on 1 February 2023, the company pointed out that the volume of trading of $FTM has not cooled down, regardless of prices growing rapidly. This, reports by Santiment, is a positive sign that the rally still has some momentum.
In addition, the company found that the average age of financing for $FTM dropped significantly in the Second half of February, indicating that dormant coins are being activated and contributing to the price boost. The post likewise mentions that whale transactions were observed around January 19th and 20th, which can potentially have further fueled the price surge.
Nonetheless, the post cautions that the 30-day MVRV ( Market Price To Realized Value) of Fantom is as of now at +58%, which is a danger area reports by Santiment as a 30-day MVRV over +20 percent is typically a warning signal.
Regardless of this, the firm’s overall outlook for $FTM is positive, with the possibly likely scenario being “a short or mid term cooldown”, but a promising longstanding perspective, especially seeing as the past few movement of dormant coins. Santiment thinks that this may be a good year for $FTM, along with other crypto altcoins in general.