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- Fantom Network is showing signs of impending bullish run as network statistics picks momentum.
- The protocol is exploring alternative bridge solutions amidst Multichain woes.
Just like many other crypto assets in the ecosystem, Fantom’s (FTM) price is currently fluctuating at a very close range, waiting for a trigger to resume its upward trend. Markedly, Fantom’s price has been moving sideways for the last few weeks, picking profits and losses on the way. At the time of this writing, FTM was trading at $0.2744, up by 0.39% in the last 24 hours.
For almost three months now, the token has been stuck under a key barrier that has kept it below the 50-day Exponential Moving Average (EMA) as featured in the sad exploit of the Multichain bridge. Rather than get deterred by this event, Fantom investors now appear to be aiming at pushing a price resurgence in defiance to the current market outlook.
On-chain data shows that FTM holders’ engagement has grown significantly and in the last month, their activity has equally towered by 97%. Specifically, the protocol currently has 264 active addresses as against the lows of 164 on average from last month. Considering the present condition of the broad market, this increase is a sign of positive growth.
Fantom Network Sees Surge in Activity
There is also a surge in holders’ action particularly in the volume of transactions conducted on-chain. Last month, Fantom network could only boast of $2.87 million worth of transactions but the story is different this time around. Fantom network has recorded transactions worth $8.72 million this month. This bullishness is not limited to older addresses but extends to newer addresses that were recently onboarded on the network, per the protocol’s growth indicator.
The Fantom growth indicator tells the rate at which new addresses are formed on the network. A closer look at this metric shows that between mid-June and this time, there has been a 45% increase in the rate at which new addresses are formed and the numbers are still growing.
Noteworthy, all of these data indicate that the Fantom network is actively growing even after the outrageous outflows from the Multichain MPC bridge platform following its latest bout of exploit.
Such network growth is mostly considered a signal for a bull run seeing that it is coming at a time when FTM has the potential to grow. However, the 50-day EMA could pose an obstacle to the FTM price if this is the case as it can only be breached when enough buying momentum is generated.
In the meantime, price indicators like Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), are still displaying a bear signal but with the current sentiment, have the propensity to change course in the near term. Should the markers change, FTM holders should be ready to see a price surge.
Meanwhile, the Fantom Foundation is beginning to explore alternative chains to power its operations after the Multichain bridge attack and is considering bootstrapping both Axelar Network and LayerZero to create sustainable bridges that would serve its community. At the same time, the platform said it is waiting for Multichain’s official statement and guidance on its next steps.
In the meantime, Binance temporarily suspended withdrawals of specific Multichain derivative tokens, a move that will help protect some of Fantom’s community members.
