Fantom has outperformed in the spot and DeFi industry as the overall market noted price appreciation since the start of this month. Its meteoric rise had FTM outpacing top assets such as Ethereum and Bitcoin. Fantom attracted the attention of investors from different sectors in the past seven days.
However, popularity and profitability are different terms in the financial space. So, what about Fantom in that context?
Fantom Meteoric Rise
Indeed, Fantom has recorded a meteoric rise in the past few days. The token was the 8th largest blockchain in DeFi TVL. For now, FTM is the 4th largest. The altcoin managed to rise above blockchains such as Avalanche, Terra, and Polygon within few days. Keep in mind that all these alts recorded their surges recently.
Fantom had its TVL standing at $2.4 billion on October 6, reflecting its steady rise prior. While writing this, Fantom’s total value locked increased by $7 billion to stand at $9.01 billion.
Remember, Fantom has gained around 30 protocols only since its inception. However, the altcoins network-centric upgrades and partnerships over the past six months led to its total TVL surging by 16,853,800%.
Why the Hike?
Though there’s no specific reason behind Fantom’s sudden hike, most analysts attribute the surge to the flourishing NFTs marketplace. On that, some of FTM’s protocols have surged significantly. For instance, protocols such as AnySwap (+235%), PaintSwap (+91%), and Shiba Fantom (+155%) saw remarkable growth.
Besides that, the ecosystem’s native coin FTM has surged by 87.3% in seven days. Contrarily, Ethereum and Bitcoin only gained 20% and 24%, respectively.
Moreover, Fantom’s network has positive inflows and sturdy participation. Over 35.1% of the coin’s addresses have balance. As the project claims to have resolved the trilemma of security, scalability, and decentralization, market players can wait for more in the coming days.
Meanwhile, the token’s volatility at the moment plus the overbought RSI condition shows FTM might sustain an unexpected price plunge. With that, new investors might be cautious when interacting with Fantom. You probably saw what SHIB had yesterday, losing 18% in a day after surging 253% in more than a week. As the rule of the crypto game, be careful with an asset that hit market headlines unexpectedly.