Home Altcoins News Fantom’s FRC-20 Surge: Record Transactions but FTM’s Value Lags Behind

Fantom’s FRC-20 Surge: Record Transactions but FTM’s Value Lags Behind

Fantom's FRC-20 Surge: Record Transactions but FTM's Value Lags Behind

In a notable turn of events, the Fantom network experienced a surge in activity, breaking records with 2.94 million transactions on November 22nd. This remarkable increase in daily transactions was propelled by the recent launch of the Fantom Inscription FRC-20 protocol, indicating a growing interest in the blockchain. However, as transactions soared and gas fees peaked, Fantom’s native token, FTM, failed to exhibit a positive price reaction.

FRC-20’s Impact: Surge in Transactions and Gas Fees

The introduction of the Fantom Inscription FRC-20 protocol spurred unprecedented activity on the blockchain. The surge in popularity led to a record-breaking 2.94 million transactions, a substantial rise from the usual daily transaction count. This surge, however, came at a cost, as gas fees on the Fantom network skyrocketed, reaching a peak of 11,000 GWEI during the intraday trading session before stabilizing.

As of the latest data from FTMScan, the average gas fee on the Fantom network stands at 3379 GWEI. This surge in gas fees reflects the heightened demand and activity on the network following the FRC-20 protocol launch.

FTM’s Unresponsive Price Behavior

Despite the surge in transaction volume and gas fees recorded on November 22nd, FTM’s market performance has been lackluster. The altcoin has continued its week-long decline, witnessing a further drop of 0.44% in the last 24 hours. CoinMarketCap reports a 14% decrease in FTM’s price over the past week, marking it as the crypto asset with the second-highest losses during this period.

In addition to the price decline, daily trading volume has seen a steady fall, plummeting by 82% between November 16th and 23rd. Even on the day of the record-breaking transactions and gas fees, FTM trading volume experienced a 37% decrease.

Diminishing Demand and Trading Activity

The decline in FTM’s value aligns with a persistent drop in new demand and trading activity. Data from Santiment reveals a 93% decrease in the daily creation of new addresses for trading FTM in the last seven days. Similarly, the number of unique addresses engaged in FTM transactions daily has fallen by over 85% within the same period.

Investors appear to be cautious about FTM trading, possibly influenced by the Market Value To Realized Value ratio (MVRV), which sits at -39.58% at present. This indicates that FTM’s current market value is lower than the average price at which it was last purchased. Consequently, holders may anticipate a minimum loss of 40% on their initial investments if they choose to sell at the current value.

Navigating the Complex Dynamics

The surge in transactions on the Fantom network, driven by the FRC-20 protocol, presents a complex picture. While protocol popularity and network activity reached unprecedented levels, the native token, FTM, struggled to translate this enthusiasm into positive market performance. Understanding the intricate relationship between blockchain protocol advancements and token dynamics is crucial as the crypto ecosystem continues to evolve.

Conclusion: Balancing Act in the Fantom Ecosystem

Fantom’s journey through record transactions, gas fee fluctuations, and FTM’s market challenges reflects the delicate balance required in the evolving crypto landscape. As blockchain protocols advance, the performance of native tokens becomes intertwined with broader market dynamics. Navigating these complexities is a continuous process, and Fantom’s experiences provide valuable insights into the intricate relationship between protocol adoption and token value in the ever-changing world of cryptocurrencies.

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Pankaj K

Pankaj is a skilled engineer with a passion for cryptocurrencies and blockchain technology. With over five years of experience in digital marketing, Pankaj is also an avid investor and trader in the crypto sphere. As a devoted fan of the Klever ecosystem, he strongly advocates for its innovative solutions and user-friendly wallet, while continuing to appreciate the Cardano project. Like my work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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