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Wednesday, November 30, 2022
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    HomeAltcoinFantom Token (FTM) Crashes To 8-Mth Low, More Losses In Store?

    Fantom Token (FTM) Crashes To 8-Mth Low, More Losses In Store?

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    Fantom (FTM), the native token on the eponymous blockchain, sank to an eight-month low on Saturday as merchants gave the impression to be dumping the token in a flurry of promote indicators. In a single day liquidations of the token additionally surged to their highest degree this 12 months.

    FTM dropped almost 13% prior to now 24 hours, and is buying and selling at $0.8366, its lowest since early-September. The token plummeted over 22% prior to now week, and is without doubt one of the worst weekly performers.

    Fantom’s stablecoin, fUSD, has additionally misplaced its 1:1 peg towards the U.S. greenback, and is vulnerable to destabilizing- a worrying prospect for the blockchain. fUSD is down about 23% at $0.77.

    String of hacks spook FTM buyers

    The token’s newest decline seems to be triggered by main hack in one of many chain’s DeFi protocols. Deus Finance was attacked in a flash mortgage exploit which drained the platform of over $13 million.

    Whereas the platform will not be the most important DeFi alternate on Fantom, that is the second time in two months Deus was subjected to an assault. One other FTM-based protocol, referred to as Fantasm, was exploited in March.

    The repeated hacks seem to have undermined investor confidence within the safety of the protocol. FTM’s losses this week additionally deepened simply after information of the hack on April 28.

    Quick curiosity in FTM additionally appeared to have skyrocketed this week. Scream Protocol, one in all FTM’s largest DeFi platforms, reportedly noticed a record-high variety of liquidations. The protocol’s native token plummeted over 20%.

    Information from Coinglass additionally confirmed that FTM noticed over $4 million liquidated overnight- its highest quantity of liquidations this 12 months. 90% of the liquidations have been lengthy positions.

    Promote indicators mild up

    FTM appeared to have fallen beneath a key assist degree of $0.96. Data from Tradingview reveals that the token is buying and selling effectively beneath most of its main transferring averages, indicating excessive promoting strain.

    Total sentiment on the token was additionally geared in the direction of “promote.”

    Nonetheless, some value indicators appeared to point out that the token’s sharp losses could symbolize a shopping for alternative. Fantom’s lead builders additionally seem like taking steps to restore fUSD’s peg.

    With greater than 5 years of expertise masking international monetary markets, Ambar intends to leverage this information in the direction of the quickly increasing world of crypto and DeFi. His curiosity lies mainly to find how geopolitical developments can influence crypto markets, and what that might imply on your bitcoin holdings. When he is not trawling by means of the online for the newest breaking information, you will discover him enjoying videogames or watching Seinfeld reruns.
    You may attain him at [email protected]

    The introduced content material could embrace the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any accountability on your private monetary loss.





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