FTM drops 2% in 24 hours: Is Fantom’s network activity why? 

• Despite its dropping network activity, Fantom’s TVL rose in the recent past. 
• Market indicators gave an understanding of what went against FTM. 

Over the last few weeks, the Fantom [FTM] network undertook various projects, all of which contributed to adding more active users to its blockchain. However, this rising network activity did not help FTM, as its metrics fell in the last month.

Alongside this, FTM’s price remained under the bears’ influence as well.

Is Fantom’s network activity dropping?

X (formerly Twitter) account Fantom Insider posted a tweet on the 2nd of December and revealed quite a few top-performing projects on the network.

These achievements helped Fantom rise the ranks in terms of unique addresses over the last 30 days.

Over the last month, Stargate, SpookySwap, and WigoSwap were the top-performing projects. Estfor Kingdom and 0x Protocol completed the top five of the same list.

When AMBCrypto dug further, we found that after an increase, FTM’s network activity declined last month. As per our analysis of Artemis’ data, Fantom’s Daily Active Addresses, after rising in mid-November, plummeted.

A similar trend was also seen in terms of Daily Transactions.

Source: Artemis

The blockchain also could not capture much value over the last few weeks. This was evident from the fact that both its total fees and addresses registered massive drops.

Nonetheless, the blockchain’s TVL did increase, which looked optimistic for Fantom.

Source: Artemis

FTM is under bears’ influence

The blockchain’s native token, FTM, failed to perform last week. According to CoinMarketCap, FTM’s price only moved marginally. At the time of writing, it was trading at $0.3191 with a market capitalization of over $894 million.

AMBCrypto’s look at FTM’s daily chart revealed quite a few bearish market indicators. For instance, the MACD displayed an ongoing battle between the bulls and the bears.

Its Money Flow Index (MFI) and Relative Strength Index (RSI) also registered slight downticks in the recent past.

However, the good part was that, according to the Bollinger Bands, Fantom’s price was in a less volatile zone, minimizing the chances of a further downtrend.

Source: TradingView

But in a fortunate turn of events, on-chain metrics told a different story. FTM’s MVRV ratio remained high at press time, which could help lift its price in the coming days.

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

Additionally, Fantom’s Network Growth spiked, meaning that more new addresses had been created to transfer the token.

Its Development Activity improved last week, signifying increased efforts by developers to improve the network. But selling pressure remained high as its Exchange Inflow spiked multiple times last week.

Source: Santiment