- Fantom price surged to the highest point since August 27th.
- Its total value locked (TVL) has dropped to about $639 million.
Fantom price rose sharply on Thursday as investors cheered the ecosystem growth. The FTM coin jumped to a high of $0.2884, which was the highest point since 27th August. It has risen by more than 40% from its lowest level this year.
Why did the FTM rebound?
Fantom is an Ethereum-killer that has a difficult year in 2022. After experiencing a strong growth and user adoption in 2021, the network has lost traction. The biggest challenge came after Andre Cronje, a key player in its ecosystem resigned a few months. Speculations about his return have not helped the network.
Fantom has seen its network activity drop sharply in the past few months. For example, data tracked by DeFi Llama shows that the total value locked in its ecosystem has dropped to $639 million. At its peak, it had a TVL of over $11 billion. Its top DeFi apps are Geist Finance, SpookySwap, and Beefy.
Similarly, Fantom’s NFT activity has remained under pressure in the past few months. A closer look at key Fantom NFT marketplaces like Artion and AirNFTs show that their activity has dropped in the past few months. The NFT industry is now dominated by the likes of Ethereum, ImmutableX, Solana, and Flow.
Fantom price rose sharply after positive activity in Firebird Finance, a DEX in Fantom. In a statement, Firebird said that it had passed $4 billion in total volume on Fantom.
Another statement said that Fantom had partnered with Gitcoin. Fantom will become the first chain to beta-test the grant protocol. In its introductory round, it will allocate 125k FTM in matching incentives to projects in its ecosystem.
Gitcoin is one of the biggest grants protocols in the industry. It aims to provide grants to support the development of Web3 projects.
Meanwhile, Crypto.com will have flash rewards on FTM for three weeks starting from November 7. Buyers will earn 10% per anum during this period.
Fantom price prediction
The four-hour chart shows that the FTM price went parabolic on Thursday. This rally is also likely because Stephan Kasriel, the head of Meta’s Commerce and Fintech solutions mentioned Phantom when making his NFT announcement. He was actually referring to Phantom, a Solana project.
As FTM rose, it moved slightly above the key resistance level at $0.2485, which was the highest level on October 31st. It rallied above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) moved above the overbought level.
Therefore, there is a likelihood that Fantom will retreat in the coming days and retest the support at $0.24.
