Fantom Sees Surge in On-Chain Activity Amidst Price Drop and Upcoming Upgrade

Whales Accumulate Fantom Tokens

Despite a 46% price drop since December 15th, Fantom’s on-chain activity has surged, with daily active addresses reaching a 19-month high. According to data from Santiment, whales holding between 10 million and 100 million FTM have accumulated 31.5 million more coins over the past four days, valued at approximately $23 million.

Recent Price Volatility

The recent price drop follows a 60% decline in FTM’s value after the highly anticipated Sonic upgrade. Market observers attribute the initial excitement and subsequent decline to a combination of factors, including widespread fear, uncertainty, and doubt (FUD) within the community. The reluctance of some FTM holders to bridge their tokens to the new Sonic network, due to concerns surrounding the migration process and potential complications with cryptocurrency exchanges, has contributed to the sell-off.

Upcoming Upgrade and Rebranding

Fantom is undergoing a rebranding, transforming into Sonic (S), with its tokens currently being bridged. This transition is expected to be a significant catalyst for decentralized finance (DeFi) on the platform, offering blazing-fast transaction speeds and a thriving ecosystem. The upcoming upgrade has likely spurred increased activity as users and investors prepare for the changes.

Market Sentiment and Future Outlook

The overall uncertainty surrounding the transition has created a negative sentiment within the FTM community, leading to a sharp decline in the token’s value. However, the recent surge in on-chain activity and whale accumulation suggest a potential resurgence for the blockchain platform. As the upgrade and rebranding progress, market observers will be closely watching Fantom’s performance and its potential impact on the DeFi ecosystem.

Conclusion

In summary, Fantom’s on-chain activity has surged despite a recent price drop, with whales accumulating a significant amount of tokens. The upcoming upgrade and rebranding are expected to be a catalyst for DeFi on the platform, offering improved transaction speeds and a thriving ecosystem. As the transition progresses, market sentiment and the token’s value will be closely watched.

Source: Tronweekly.com

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