Daily active users and FTM transactions decreased. On-chain performance wasn’t up to par; however, market indicators were slightly bullish.
Fantom is a platform created with the aim of providing a fast and cheap infrastructure to developers of decentralized applications. To do this, it uses a technology called DAG that is more efficient than the Blockchain. Its native token is FTM, and it can be purchased on the main platforms such as Binance or KuCoin, among others.
Fantom [FTM] recently reached a new milestone, having more than 50 million unique addresses on the network. This is a commendable achievement, as year-over-year growth exceeded 1,700%.
Fantom tweeted that “The number of active addresses on @FantomFDN has reached over 50M in total, 1758.28% in YoY. More and more big things are coming. 100M is coming soon.”
But… There Is a Catch
While the growth in unique addresses seemed 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 decrease in the last 30 days.
A similar trend was also seen with the network’s successful transactions, which also fell. Considering the current situation, it is worth asking if a higher number of unique addresses will be enough for Fantom to maintain its health in the second quarter of 2023.
Assessing Fantom’s Performance
Evaluating Fantom’s on-chain performance, some factors were found that were not in favor of the Blockchain. For example, FTM development has plummeted in the last 30 days, which is a red signal for a Blockchain. To make matters worse, negative sentiments around FTM have peaked, suggesting lower investor confidence in the network.
Will the Q1 Winner Perform in Q2?
Fantom Insider noted in a tweet posted on April 6, 2023, that FTM ranked third on the list of cryptocurrencies by the percentage increase in price during the first quarter of 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! What price do you expect Fantom to hit next quarter?”
Growth appears to have stopped. The declining momentum can be attributed to the current market conditions, in which most cryptocurrencies are struggling to push their prices higher.
As noted by CoinMarketCap, the FTM price has risen just over 1% over the past seven days. Most recently, it was trading at $0.459 with a market capitalization of more than $1.2 billion.
The Santiment data revealed that some of the metrics suggested the possibility of a downtrend in the coming days. However, Fantom’s daily chart showed signs of recovery. The Chaikin Money Flow (CMF) posted a rally, which was a development in favor of buyers.
Finally, the exponential moving average ribbon showed a bullish crossover, as the 20-day EMA inverted the 55-day EMA. FTM’s Money Flow Index (MFI) was also unsettled above the neutral mark, giving hope for a price hike in the coming days.
By Audy Castaneda
