Journalist
Posted:
- The number of daily transactions on Fantom recently rose to a record high.
- However, demand for FTM continues to decline.
The Fantom Network [FTM] saw a flurry of activity on November 22, driven by the recent launch of the Fantom Inscription FRC-20 protocol on the blockchain.
The popularity of the protocol led to a record 2.94 million transactions on the network, a significant increase from the usual daily number of transactions.
This increase in activity also caused gas rates to skyrocket, reaching a peak of 11,000 GWEI during the intraday trading session before a correction took place.
At the time of writing, the average gas fee on the Fantom network was 3379 GWEI, according to data from FTM Scan.
FTM does not respond
Despite the increase in trading volume and gas rates recorded on November 22, the price of FTM has not shown any positive price reaction.
The altcoin has continued its week-long decline, falling further by 0.44% over the past 24 hours.
According to CoinMarketCapFTM’s price has fallen 14% over the past week, making it the crypto asset with the second highest losses over the past seven days.
In addition to the price drop, there has also been a steady decline in daily trading volume over the past week. Data obtained from Santiment showed that between November 16 and 23, the volume of daily traded FTM fell by 82%.
Even on November 22, when the Fantom network recorded a record high in the number of daily transactions and gas fees, FTM trading volume experienced a 37% drop.
Source: Santiment
FTM’s price decline over the past week coincides with the continued decline in new demand and trading activity related to the altcoin.
Santiment data shows that the daily number of new addresses created to trade FTM has decreased by 93% over the past seven days.
The number of unique addresses involved in FTM transactions on a daily basis has also fallen by more than 85% in the same period.
Source: Santiment
Read Fantoms [FTM] Price prediction 2023-24
Investors may have been put off trading FTM over the past week due to its market value to realized value ratio (MVRV), which continues to decline.
At -39.58% at the time of writing, FTM’s current market value was lower than the average price at which it was last purchased. Therefore, most holders could expect a minimum loss of 40% on their initial investments if they sold now.
Source: Santiment
