Fantom’s price has been on an uptrend for the last week as FTM rallied from the price range of $2.22 on January 10 to a make a new ATH of $3.4 on January 17. FTM’s price surged by over 50% in less than a week, reclaiming an all-time high price amid the latest developments and other milestones.
DeFi Ecosystem Blooms
Fantom’s growth in the DeFi space has aided the growth in the altcoin’s spot price and was indicative of the rising institutional interest in the ecosystem. Notably, the total value locked in the chain rose from $5 billion to $7.68 billion at the time of writing as per data.
That said, the cryptocurrency’s hourly social volume increased by 250.0% around the $3.22 price level. Fantom’s surge comes alongside the larger market’s consolidation with Bitcoin and Ethereum still trading near their lower support levels.
Fantom is a programmable blockchain using an asynchronous byzantine fault-tolerant Proof-of-Stake consensus mechanism called Lachesis.
The blockchain is integrated with the Ethereum Virtual Machine (EVM) and the Web3JS stack and allows users to write, compile, and deploy smart contracts the same way it’s done on the Ethereum network.
The 26th ranked coin as per market cap started performing well from December 22 and gained close to 130% price but soon fell in tandem with BTC and larger market in the second week of January.
Fantom’s bullish price action over the last week can also be credited to the increased activity on the blockchain as highlighted by the network in a Twitter DeFi. As seen below, Daily Active Wallets were on a rise.
Daily Active Wallet chart in 7 days moving average since 12/22/21 pic.twitter.com/x3uISxGgPR
— Gojo (@Gojo_Crypto) January 15, 2022
Further, FTM spent around 33 hours as the No. 1 LunarCrush AltRank this week as the altcoin was leading in terms of social and market activity.
More Gains Ahead?
After making a new ATH FTM’s price trajectory seemed to have flattened as the altcoin traded at $3.18 noting a 2.09% daily price fall at the time of writing. Data from Sanbase presented that a crucial signal to watch closely for FTM would be its funding rate on exchanges like Binance.
When going negative, the same could indicate many shorts meaning that prices have tended to rocket upward.
While the growth in DeFi has been key to the rise in price other developments boosting network activity have also played a role in FTM’s price rally. For now, however, with price seeming to slow down and the FTM market looking overheated a short-term pullback wouldn’t come as a surprise.
This article was originally posted on FX Empire