Image default

Fantom (FTM) Risks Dropping to Zero – Can Uniswap Save the Day?

Read on Read on Google NewsGoogle News

Key Takeaways:

  • Fantom token FTM risks a 90% drop, technicals say.
  • The on-chain metrics back the prognosys, with a declining TVL and market domination.
  • Can Uniswap deployment save the dormant Fantom?

YEREVAN ( – Fantom token FTM soared 240% in Jan 2023. However, the rally fizzled, and the coin dropped 50% since, trading at $0.33 on May 24, 90% below its 2021 record high. Moreover, bearish technicals threatened a further 90% drop, slashing the FTM price to near zero.

FTM in a descending triangle

After peaking on Feb 1, the Fantom token formed a technical pattern dubbed the ‘descending triangle.’ The latter entails a flat support line that prevents sharp declines and a falling resistance that caps upside attempts.

Fantom (FTM) daily price action. Source:
Fantom (FTM) daily price action. Source:

Notably, the pattern predicts a drop equal to the maximal triangle height, which targets the FTM price at nearly zero, a 90% decline for the token.

As of May 24, the Fantom token arrived at a crucial support/resistance level, relevant since May 2022. However, the falling trading volumes and the negative MACD sentiment back the bearish prognosys, along with the on-chain metrics.

Fantom on-chain metrics also bearish

According to data from the DeFi tracking platform DeFiLlama, the Fantom Network commanded 2.51% market dominance in Jan 2022. However, the dominance gradually fell and stood at merely 0.62 On May 2023, despite the January FTM price surge.

Fantom dominance dropped in 2023. Source:

The platform’s total value locked (TVL) also plummeted after the 2022 highs and reached $266 million at the time of writing, after an 8% daily drop.

Fantom TVL flatlines throughout 2023. Source:
Fantom TVL flatlines throughout 2023. Source:

According to on-chain analytical platform Santimenr, FTM’s price drop was also accompanied by a lowering in USD transaction volume on the platform, and a low social dominance.

Fantom's USD transactions and Social dominance drop. Source:
Fantom’s USD transactions and Social dominance drop. Source:

Will Uniswap migrate to Fantom?

One of Columbia University’s tech units dedicated to blockchain, dubbed “[email protected],” put forth a proposal to deploy Uniswap, one of the largest decentralized exchanges, onto the Fantom blockchain.

Notably, the proposition came after Uniswap’s Business Source Licence (BSL) expired on April 1, transitioning the project to General Public License. Meanwhile, the expiration also gave the developers the freedom to fork Uniswap V3.

With the expiry of the Uniswap v3 BSL, other DEXs including Beethoven X, are eyeing the opportunity to seize market share on the Fantom chain. In order to stay ahead of the competition, Uniswap must establish its presence on Fantom quickly and efficiently.

read the proposal.

Experts at Columbia emphasized the utility of Fantom’s framework and consensus, which gives way to faster transactions. Axelar, a cross-chain bridge platform that connects multiple blockchain networks, will act as the bridge infrastructure provider.

Also read: Solana Integrates ChatGPT Plugin — SOL Price Mum.

The proposal could revive the dormant Fantom platform, should Uniswap go forth with it. However, as of May 24, the exchange has not yet released an official stance on the proposition.

The post Fantom (FTM) Risks Dropping to Zero – Can Uniswap Save the Day? appeared first on CoinChapter.

Source link

Related posts

Dogecoin Jumps 15% In 24 Hours As DOGE Overcomes Critical Level

Marine Savard

Twitter’s new dog icon is sending dogecoin — sigh — to the moon

Marine Savard

Bitcoin, Ether Price Tank by Close to 5 Percent as Traders Fail to See Immediate Upside

Marine Savard

Bitcoin to launch its first USD-pegged stablecoin, details here

Marine Savard

New Cryptocurrency C+Charge Launches – How to Invest in 2023

Marine Savard labels mass layoff of 2,000 employees report as ‘inaccurate’

Marine Savard

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More