Fantom’s native token FTM declined after the recent hack affecting WazirX, a leading Indian crypto exchange. Blockchain sleuth Cyvers Alerts’ system detected numerous suspicious transactions involving the exchange’s safe multi-sig wallet on the Ethereum Mainnet.
On July 18, an unknown entity transferred funds worth $234.9 million to a new address, using cryptocurrency mixing service Tornado Cash for each transaction. The suspicious address exchanged GALA, PEPE, and USDT into Ether.
While FTM accounted for just $3.2 million of the total, the FTM price declined by 4% immediately after the hack. Further downside is expected.
Data shows that the 50-day moving averages are below the 200-day ones, suggesting that FTM has formed a death cross. This crossover tends to be seen as a bearish signal, indicating potential downward momentum and the possibility of a sustained downtrend.
Unsettling news for Fantom
This is unsettling news for Fantom as it’s yet another blow to the ecosystem. Between June 8 and July 8, the platform’s monthly revenue decreased by over 30%, despite an increase in the number of active addresses. During this period, the price of FTM dropped by nearly 40%, reversing previous gains and contributing to the decline in revenue.
Concurrently, the number of unique addresses interacting with Fantom soared by 77%. As gas fees on Fantom are based on the native token, the drop in FTM price resulted in cheaper transactions for users interacting with the platform, leading to an increase in active addresses.
As gas fees dropped, transaction fees were less than $53,000 in that period, corresponding to a 31% drop. The Fantom network derived $15,750 from these fees. In addition, following a peak of $89,377 in March 2024, the network’s monthly revenue saw a significant drop, surpassing 80% by the end of Q2.
Fantom is a platform based on a directed acyclic graph that offers developers DeFi services through its unique consensus algorithm. Fantom and FTM are focused on addressing issues related to smart contract platforms, with developers claiming to have reduced transaction speeds to under two seconds.
