The Fantom network (FTM) witnessed a surge in activity on November 22nd, attributed to the recent introduction of the Fantom Inscription FRC-20 protocol on the blockchain.
This protocol’s popularity resulted in an unprecedented 2.94 million transactions on the network, a substantial increase from the typical daily transaction count. Consequently, gas fees experienced a notable spike, reaching a peak of 11,000 GWEI during the intraday trading session before a subsequent correction.
As of the latest data from FTMScan, the average gas fee on the Fantom network stands at 3379 GWEI.
Despite the heightened trading volume and increased gas fees on November 22nd, the price of FTM failed to exhibit a positive response. The altcoin continued its week-long decline, dropping by an additional 0.44% in the last 24 hours.
According to CoinMarketCap, FTM’s price has depreciated by 14% in the past week, positioning it as the cryptocurrency with the second-highest losses over the last seven days.
In tandem with the price decline, there has been a consistent reduction in daily trading volume over the past week. Santiment data indicates an 82% decrease in the daily volume of FTM traded between November 16th and 23rd.
Even on the day of the record-breaking transactions and gas fees surge (November 22nd), FTM trading volume experienced a 37% decrease.
The recent price decline in FTM aligns with a sustained drop in new demand and trading activity associated with the altcoin. Over the last seven days, Santiment’s data reveals a 93% reduction in the daily number of new addresses created for FTM trading. Similarly, the number of unique addresses engaged in daily FTM transactions has fallen by over 85% within the same period.
Investors may have refrained from FTM trading in the past week due to the Market Value To Realized Value ratio (MVRV), which continues to plummet. At -39.58% at the time of reporting, FTM’s current market value is below the average price at which it was last purchased, suggesting that most holders could anticipate a minimum loss of 40% on their initial investments if they were to sell at the present moment.