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

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 practically 13% up to now 24 hours, and is buying and selling at $0.8366, its lowest since early-September. The token plummeted over 22% up to now week, and is likely 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 isn’t the largest DeFi alternate on Fantom, that is the second time in two months Deus was subjected to an assault. One other FTM-based protocol, known 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.

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

Knowledge 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 gentle up

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

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

Nonetheless, some worth indicators appeared to indicate that the token’s sharp losses might signify a shopping for alternative. Fantom’s lead builders additionally look like taking steps to restore fUSD’s peg.

With greater than 5 years of expertise protecting international monetary markets, Ambar intends to leverage this information in direction of the quickly increasing world of crypto and DeFi. His curiosity lies mainly to find how geopolitical developments can affect crypto markets, and what that would imply on your bitcoin holdings. When he is not trawling via the online for the most recent breaking information, you could find him taking part in videogames or watching Seinfeld reruns.
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