FTM makes slight gains as transactions on the Fantom network dip

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Written on Dec 16, 2021

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Transactions on the Fantom network have dipped to around 650,000.
The dip in transactions comes as FTM’s price attempts to make a rebound.
The Fantom network is currently the seventh-largest blockchain with a TVL of $4.85 billion.

The price of Fantom (FTM/USD) has jumped during the past 24 hours to reflect the trend happening in the market. The Fantom network has also gained adoption in recent months, and it is now dubbed as an “Ethereum killer.”

In the past 24 hours, FTM has gained by more than 11%, and at the time of writing, the token is trading at $1.53. The total market capitalization of this token has also increased to more than $3.86 billion, and it now ranks as the 46^th largest cryptocurrency by this metric.

Transactions on the Fantom blockchain drop

The Fantom blockchain is a leading proof-of-stake network, and its consensus has allowed it to become a scalable platform in the market. It allows developers to build applications on the network to support decentralized finance (DeFi) projects.

During the past few months, Fantom has become one of the popular blockchains in the market, and investors have remained positive about its speed and interoperability.

Fantom has been used to build various applications, and as more developers build on the network, the total value locked (TVL) has increased. Data from DeFi Llama shows that 92 decentralized applications (Dapps) have been built on Fantom.

Fantom’s TVL stands at $4.85 billion, making it the seventh-largest DeFi network. However, despite the growth in TVL, the number of transactions on the network has dropped from a record high of 1.8 million to around 650,000.

Fantom’s price action indicates a bullish signal

Over the past few weeks, Fantom’s price has been on a bearish trend, similar to what has been happening across the broader market. FTM’s price has dropped by over 55% from its all-time high of $3.46 recorded two months ago.

Going by this price movement, FTM is trying to move to the upper section of the descending channel. FTM has shifted to the 25-day moving average, and the Relative Strength Index (RSI) has increased.

If FTM manages to move above the descending channel, it could push to the higher level of $1.65. Afterwards, the coin will resume its bearish trend if the broader market support continues to weaken, and it could retest the lower support at $1.26.