Over the past few weeks, the Fantom blockchain has faced challenges with dwindling network fundamentals, particularly a decline in daily active addresses. After reaching a peak, the trend began to wane starting last month. Moreover, the blockchain’s Total Value Locked (TVL) has also been experiencing a downward trajectory, adding more concerns about the ecosystem’s overall health.
In an effort to counter the declining metrics and reinvigorate its network, the blockchain recently rolled out its first-ever Vault Round, allocating 750,000 FTM to fund the most promising projects on its platform.
Currently, Fantom’s price is at $0.201111, up by 0.66% from the previous day. The bulls have taken control of the market and pushed up Fantom’s price. The total market capitalization has pushed to $563,843,051, and its 24-hour trading volume is at $26,095,933.
Interestingly, while the number of active addresses has declined, daily transaction activity on the Fantom network has yet to follow suit. This incongruence hints at underlying potential, where the Vault Round could provide the stimulus required for a renaissance. Moreover, some financial metrics, such as the MVRV Ratio, indicate that Fantom is looking up. Last week alone, the MVRV Ratio showed slight improvement, signaling that the platform’s native token, FTM, still holds latent value.
Adding to that, despite the recent downward trend in Fantom’s network activity, FTM maintained bullish momentum, rising by 2% in the last week. Furthermore, data indicates that the whales, or top addresses, are maintaining their supply of FTM, which suggests a vote of confidence in the network’s long-term prospects. On the derivatives side, FTM’s Binance funding rate was in the green, revealing strong demand in the futures market.
A recent chart by Artemis depicted a concerning 30-day trend of falling fees and revenue for Fantom. This decrease in financial performance highlights the urgency for new initiatives like the Vault Round, which aims to pump much-needed liquidity and attention into the most popular projects on the platform.
Yet, there was a noticeable drop in FTM’s velocity, implying that the token is being used less frequently in transactions within a given time frame. This is a crucial metric, as velocity is often considered an indicator of a token’s utility and, by extension, its inherent value.
In summary, Fantom’s latest Vault Round initiative could serve as a pivot point for its network fundamentals. While there are challenges that need to be urgently addressed, this new round of funding can potentially shift the platform’s trajectory, renew investor confidence, and stabilize the ecosystem’s financial health. With this effort, Fantom aims to put itself back on the path of robust network activity and value capture.
