$2.1 – This was the lowest price at which Fantom traded on 10 January. Fast forward to today, FTM has already visited the $3.15 mark. To be more clear-cut, the market’s 26th largest crypto has registered gains worth 50% in a period less than 4 days.
Fantom, as such, is a L1 blockchain, often attributed with the ‘Ethereum killer/competitor’ tag. Now, during an organic uptrend phase, it remains quite crucial for users to be active on the network.
To find out the users’ state of activity, let’s delve into the DAA first. The said metric, as such, gauges the number of unique addresses that have interacted with a blockchain on a daily basis.
Now, as can be seen from the chart attached below, the number of unique addresses massively shot up when Fantom had announced a $370m incentive program in September. The same ended up driving high yields in the ecosystem.
Post that, when the hype faded away, the number of unique addresses continued to remain higher than before the spike. The same had been on a downtrend since then, but now, has started projecting concrete reversal signs.
Thus, it can be inferred that more users are now becoming active on the Fantom blockchain.
Quite parallelly, Delphi Digital recently highlighted that the number of transactions on AVAX had ramped up when compared to the likes of Avalanche, which is quite a positive development.
Additionally, capital is currently entering into the Fantom market at a good pace. Here it should be borne in mind that to use any L1, users are first supposed to move assets onto that chain via bridging.
From the chart attached below, it can clearly be seen that the Fantom Bridge has the most number of depositors, clearly indicating capital inflow into the ecosystem. In fact, Fantom has the only bridge that has increased the number of depositors in the last week.
The aforementioned capital inflow assertion was further supported by the 19% rise in the the total value locked up in Fantom’s ecosystem.
So, with the state of Fantom’s network currently being impressive, its price should be able to leap forward. However, it would be tested around its previous high level around $3.5. If it successfully manages to break above, then FTM would yet again enter into its price discovery mode.