Fantom was considered a good investment option during the bear market of 2021. By marking its ATH in January 2022, Fantom seemed to be in a good place. However, the FTM holders witnessed a shock as the coin dropped nearly 50%.
To add to the misery, the token’s price trajectory has recently caused a large-scale FUD in the market.
Fantom fails to fight against the enemies
The 18.41% drop seen in the past 48 hours has even reinforced the presence of bears in Fantom’s case.
Until this week, there were some possibilities that the bearishness seen in the FTM market was short-lived. And that the altcoin would recover quickly. However, after losses across the network continued for more than seven days, investor optimism waned.
Fantom price action | Source: TradingView – AMBCrypto
In addition, FTM rallied in December, with demand dominating selling pressure. It is interesting to note that when prices fell in January, demand did not completely disappear.
Amid the bearish short-term movement, the network-wide FTM offering was also loss-making. In addition, it should be noted that any purchase by investors above the $1.77 range would be more of a losing game. Surprisingly, many investors have already suffered the loss.
Fantom network wide losses | Source: Santiment – AMBCrypto
However, the ripples of these losses were not limited to just the spot market. Fantom, which has a significant presence in the DeFi market, took a hit when it lost more than $4 billion in total value in the past two days.
Notably, the TVL skyrocketed in the last week of February when the Soldily Decentralized exchange launched on the Fantom network.
The DEX’s TVL rose from $28 million to $2.21 billion in just four days, adding to Fantom’s total TVL.
Curiously, in the past seven days, multiple protocols in the chain have lost their TVL due to the associated bearishness. This also led to a drop in Fantom’s TVL to $8.99 billion.
Fantom DeFi TVL | Source: DeFi Llama – AMBCrypto
This is the early stage of Fantom’s encounter with the bears. It would therefore be premature to announce whether there is a recovery or another decline in the picture. The only wise decision would be to observe the market before making any investment decision.
This post Will Fantom defy broader market sentiment? The on-chain stats say…
was published first on https://ambcrypto.com/will-fantom-defy-the-broader-market-sentiment-the-on-chain-metrics-say/
