coinedition.com
Fantom experienced many ups and downs in 2022, but 2023 has boomeranged the asset to newer heights. Crypto analytics platform Santiment reported that Fantom is currently ranked 40th according to market capitalization, and its value has grown by 164% one month into the new year.
👻 If you dipped your toes in #Fantom at the beginning of 2023, your portfolio has certainly thanked you. Up +164% thus far on the year, the dormant coin movement & rising whale transactions are good long-term signs. Read about these $FTM topics and more: https://t.co/SpuhmROFJ9 pic.twitter.com/09TPMGAmoV
— Santiment (@santimentfeed) February 1, 2023
When prices are increasing a little too quickly, trading volume usually starts to level off or slow down as prices rise. However, Santiment highlighted the opposite for Fantom as shown in the graph below.
Additionally, Fantom’s mean dollar invested age which measures the average age of investment for the coin dropped significantly lower during the second half of February. This is yet another excellent indication that this rise still has some legs and that dormant coins have been progressing into this price increase at a reasonable pace, as depicted in the chart below.
Santiment also shared that whale transactions started to build between January 19 and 20. This unexpectedly large increase following the small FTM price dip was a sign that the January surge might be underway. The graph below shows FTM’s price versus transaction comparison.
Moreover, the fact that average trading returns have been disproportionately large is what actually raises red lights about Fantom at the moment. A 30-day MVRV over +20% is typically considered to be dangerous. And the asset’s 30-day MVRV is at a staggering +58%.
Overall, the most likely scenario suggests that Fantom will see a short- to medium-term slowdown. Many people believe that this may apply to altcoins in general. However, from a long-term view, Santiment observes some potential that 2017 might be a strong year for the coin, particularly in light of its enormous dormant coin movement over the past couple of weeks.