Fantom rally and incentives

Assets covered: Fantom (FTM)

Metrics used: Social Volume, Weighted Social Sentiment, Active Addresses, Active Deposits, Network Profit Loss, MVRV, Supply on exchanges

Charts layout:

One of alternative blockchain native tokens, Fantom, has been pumping on a growing community interest:

Source: Sanbase

Above is how social volume for FTM is looking. Fantom has even appeared in Social Trends. And according to our channels, it's sentiment is fairly high, which makes perfect sense:

It often preceded a period of cooling off for a token.

Active addresses are also very reminiscent of previous tops:

Source: Sanbase

Let's see if deposits agree. Yes they do:

Source: Sanbase

The largest spike since 2019! At the moment we are seeing quite a bit of a new sell side pressure according to active deposits. There are still people looking to offload their FTM.

Yesterday we had a big spike in profit taking and then a short term correction, very short term:

Source: Sanbase

We would not be surprised seeing more people taking advantage of the rally.

Short term MVRV is not that high actually:

Source: Sanbase

It definitely has dropped since the peak.

But looking into a longer term MVRV, we can see some increased risks:

Source: Sanbase

It's quite high, indicating that a lot of long term Fantom holders are in profit now, so there is some potential for a price consolidation as people start claiming some of those profits.

The supply on exchanges is declining:

Source: Sanbase

This could be explained by 370m FTM incentive program announcement, saying that:

"From today on, protocol teams will be able to apply for rewards from the Fantom Foundation based on their total value locked (TVL), scaling from 1,000,000 FTM up to 5,000,000 FTM"

On the other side we are still saying a record high level of deposits to exchanges. And this is difficult to explain. Deposits spiking like crazy but supply on exchanges is dropping? This remains unclear.


Warning markers start to appear in FTM's data.

It's presence in Social Trends is concerning too.

Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.

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