How FRC-20 propelled Fantom transactions to a record high

• Daily transactions count on Fantom recently climbed to a record high.
• However, demand for FTM continues to plummet. 

The Fantom network [FTM] experienced a surge in activity on the 22nd of November, driven by the recent launch of the Fantom Inscription FRC-20 protocol on the blockchain.

The protocol’s popularity led to a record-breaking 2.94 million transactions on the network, a significant increase from the usual daily transaction count. 

This surge in activity also caused gas fees to skyrocket, reaching a peak of 11,000 GWEI during the intraday trading session before correcting.

At press time, the average gas fee on the Fantom network was 3379 GWEI, according to data from FTMScan. 

FTM fails to react

Despite the surge in trading volume and gas fees recorded on 22nd November, FTM’s price has failed to witness any positive price reaction. 

The altcoin has continued its week-long decline, falling further by 0.44% in the last 24 hours.

According to CoinMarketCap, FTM’s price has fallen by 14% in the last week, making it the crypto asset with the second-highest losses in the past seven days. 

In addition to the price decline, there has also been a steady fall in daily trading volume in the last week. Data obtained from Santiment showed that between 16th and 23rd November, the volume of FTM traded daily fell by 82%. 

Even on 22nd November, when the Fantom network logged a record high in daily transactions count and gas fees, FTM trading volume experienced a 37% decrease. 

Source: Santiment

FTM’s price fall in the last week coincides with the persistent drop in new demand and trading activity involving the altcoin.

Data from Santiment showed that in the last seven days, the daily number of new addresses created to trade FTM has dwindled by 93%.

Likewise, the number of unique addresses involved in FTM transactions daily has fallen by over 85% within the same period.

Source: Santiment

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

Investors may have shied away from trading FTM in the last week due to its Market Value To Realized Value ratio (MVRV), which continues to plunge. 

At -39.58% at press time, FTM’’s current market value was lower than the average price at which it was last purchased. Hence, most holders could expect a minimum loss of 40% on their initial investments if they sold now.

Source: Santiment