– 67% from ATH: Can Fantom FTM make a comeback?
Andre Cronje knocks the Fantom FTM down, but doesn't kill it!
The Fantom FTM price has had a bad time over the last few weeks. After a bullish push with the release of the new DEX Solid which brought a lot of users to the network, the FTM quickly turned in the opposite direction when André Cronje , the founder of this latest project, announced his departure from DeFi. But we often forget that the Fantom blockchain has advantages that could surprise more than one.
- A drama orchestrated by André Cronje
- Fantom, the most experimental DeFi blockchain
- can the FTM go back into an uptrend?
Drama On Fantom FTM After The Departure Of Fantom Foundation Member André Cronje
The first two months of the year on the Fantom blockchain were punctuated by announcements from André Cronje . This Pope of DeFi , founder of Yearn Finance and one of the developers of Fantom, announced in January the creation of a new project. Before knowing more about the latter, the future airdrop for the most dynamic projects on this blockchain brought a lot of users.
The launch of Solid, a new DEX, and Solidex, its optimizer, have finished highlighting this network. In a few days, Fantom rose to 3rd position in the DeFi ranking on DefiLama after Ethereum and Terra. The attraction aroused by this DEX is linked to its new redistribution of transaction costs which makes it possible to increase returns. In addition, a whole boost system in place also forces you to think about your farming strategy. These ingredients obviously attracted a lot of DeFi followers and influencers.
However, this story quickly took on a bitter taste. André Cronje flip-flops and says he will retire from DeFi on April 3, shutting down all of the apps he founded. From that day, we saw appearing on the home page of Solid the indication of the closure of the site. This decision obviously threw a chill on all investors. All those who had come en masse to Fantom therefore did the opposite. We were able to witness a huge drop in the TVL (from 11 to 5 billion in a few days) as well as the fall in the price of the FTM.
A Resolutely DeFi-Oriented Network
However, this drama should not make us forget that this network keeps a large number of followers because it is undoubtedly one of the most experimental blockchains in decentralized finance. Arguably the most watched is Tomb Finance, linked to the controversial Harry Yeh. Tomb Finance is a project that consists of creating a token whose price varies algorithmically. It is thus indexed to another token, here the FTM.
Of course, it was not the theoretical aspect of the project that attracted so many people. Remember, however, that it is a question of having a mirror token of the FTM to increase liquidity on the network if the FTM is missing due to staking for security. In fact, this project comes with huge returns that made it one of the success stories of DeFi 2.0. Its success was at the origin of a very large number of copies (forks). The latter have for the most part completely forgotten the original project to keep only the yields.
Apart from this type of protocols, the Fantom blockchain also has different lending protocols (Tarot, Benqi and now Impermax) which allow it to optimize its investments. This experimental side explains the gap between its place in the DeFi ranking and the capitalization of the FTM which is often between the 30th and 40th position. This network therefore has a community of followers who have not let go despite the departure of André Cronje.
What Outlook For The FTM Price?
With this lackluster balance sheet, can the FTM start to rise again? Or continue the retracement it has suffered for a month. In fact, as we have just said, we must not forget that this network has a lot of users compared to other blockchains since there are 2.5 million wallets. This support is complemented by that of investors. Indeed, the American site Coin Bureau recalls that “all the FTM allocated to the team and to the first investors have finished being acquired at the end of 2020 and there is a good chance that they have already sold a substantial amount of this FTM . This is a good thing because it means there will be less FTM to sell in the future and therefore less price compression they can cause”.
The FTM is currently at $1.3. It is therefore very far from its historical record of January at 3.3 dollars. Its fundamentals show that this situation will no doubt be temporary. We can find the FTM in great shape during the next alt-season.
The FTM has had several very turbulent months. New project by André Cronje , then announcement of the latter’s retirement. That was enough to turn the FTM course into a yoyo. Fortunately, the experimental atmosphere that reigns on this network attracts a large number of users and investors. These eddies will no doubt be temporary.