Fantom on-chain analysis 75% of the FTM token supply is locked, with the remaining 25% unlocked, indicating that whales and holders believe in the FTM token. FTM is now down more than 90% from its previous all-time high of $3.3, and its market cap has dropped from $7.6 billion to less than $600 million, according to coinmarketcap.
In the previous article, we discussed Fantom revenue and gained some insight, such as the fact that the Fantom Treasury holds approximately 18% of FTM supply.
On October 22, when the FTM price was $0.19, it was on its way to recovering from the low range-bound movement price of FTM toward $3.1, which is approximately 60% up, but on November 2, when Coindesk revealed the Alameda balance sheet and CZ Binance tweeted about the FTX exchange, FTM dropped dramatically and reached a new all-time low of $0.16.
The global cryptocurrency market cap is $858.47B presenting an over 0.51% increase in the last 24 hours. With most of the top altcoins holding supports, Fantom’s price surged 15% in a day, let’s discuss this in deep fantom on chain analysis.
Fantom On-Chain Analysis
At the time of writing, the FTM price surged 15% on the daily chart, while presenting a 28% rise on the weekly chart. while the recent FTX drama has massively affected the FTM price.
According to IntoTheBlock data, Fantom holders have seen a 28.44% increase in the last 30 days. However, cruisers (short-term holders), who earlier dominated FTM addresses, saw an 18.18% decline and a 389.01% rise in traders. Addresses by time-held data for Fantom showed a healthy rise in holders and traders over the 30-day window.
Short-term Cruiser holders indicate that they bought the dip of FTM and DCA into it, then sold tokens and booked profit when the price surged. Hodlers still accumulating their holding which means they trust fantom. So Why did Trader’s volume jump around 4,000% because the social volume of Famtom increased also Cronje’s article create more social engagement which is the way retail entered into it.
For the majority of traders in FOMO, you can see the monthly volume is a surge above the price trend line, however, long-term holders and whales keep accumulating FTM tokens.
Whales of Fantom On-Chain Analysis
FTM addresses with 10 million to infinity coins held over 1.35 billion coins in May and were now down to holding 1.26 billion. As the reason behind the UST incident, some of the holdings quit or sell coins, but at this time whales are accumulating their holdings.
Furthermore, from October 9 to October 10, when the daily active address was like zero and network growth was also down, we see that the daily active address surged, which meant short-term holders and whales took some profit because, if you see when the daily active address is high, then the price of FTM tokens is low, which means whales are accumulating FTM tokens.
Fantom’s total value locked (TVL) is suffering even more than its token price. As per Defillama, the total value of FTM is worth $455 million in USD, which is down from $8.07 billion. The market cap of FTM is around $600 million, and the total TVL is around $455 in tokens, which means 75% of the tokens are locked in stacking, validating, and self-staking and 25% are unlocked. which is a good sign for any Level 1 blockchain project.
Furthermore, as per Fantom network explorer, the total network delegated staking is 1.31 billion FTM which is around 40% of the total supply validating the network to earn rewards and 8% of the FTM supply on self-staking. As per the Fantom network, the total number of validators is 64. On November 28, Cronje published a blog in which he claimed Fantom runs 9 validators, which means 14% of network validation is done by Fantom, and the remaining others are whales and institutions.
I recommend you to read this blog “Fantom is Up 25% in 2 days Let’s discuss FTM’s next price move after Andre Cronje’s article”
As per last IntoTheBlock’s In and Out of Money Around Price suggested that at the $0.23 mark, 617 addresses held 220.88 million FTM tokens for ready-to-sell FTM but the buying pressure is low which indicates selling pressure is more than buying pressure.
In the event of a bearish invalidation, if the price rises, an uptick to the next resistance level at $0.25 is likely.
Fantom Technical Analysis
On June 13, the FTMUSDT downtrend market structure was converted back into an uptrend structure, but again the market structure broke in August, and we are still in a downtrend in (weekly timeframe. Looking at the bigger picture, I believe FTM will move toward the $0.34 resistance level because the market structure always moves in a higher high and lower low style.
Around 40% of the FTM token supply is locked in network validation, which is a good sign. Recently, there have been too many bad events that seriously affected the overall crypto market, so my advice is to learn crypto rather than trade it.
Only hold bitcoin and other crypto tokens for the short term. If you invest in an XYZ project that aims to deliver real-world utility after the project grows but has no utility, get out of those projects and find another project instead of holding those tokens.