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- The number of daily transactions on Phantom recently hit an all-time high.
- However, demand for FTM continues to plummet.
Phantom Network (FTM) recently saw a surge in activity on November 22nd with the launch of the Phantom Inscription FRC-20 protocol on the blockchain.
The popularity of the protocol led to a record 2.94 million transactions on the network, a significant increase over the typical daily number of transactions.
This surge in activity also caused gas fees to surge, reaching a high of 11,000 GWEI during the intraday trading session before the correction.
At press time, the average gas price on the Fantom network was 3379 GWEI. FTMScan.
FTM does not respond
Despite the surge in trading volume and gas prices recorded on November 22, the price of FTM failed to show a positive price reaction.
The altcoin continued its week-long decline, falling a further 0.44% in the last 24 hours.
According to CoinMarketCap, the price of FTM fell 14% in the past week, making it the second-biggest losing cryptocurrency asset over the past seven days.
In addition to the price decline, daily trading volume has also steadily declined over the past week. According to data obtained from Santiment, daily FTM trading volume decreased by 82% between November 16 and 23.
Even on November 22nd, when the Phantom Network reached an all-time high in terms of number of daily transactions and gas fees, FTM trading volume fell by 37%.
Source: Santiment
The price decline of FTM over the past week is consistent with the continued decline in new demand and trading activity related to altcoins.
According to data from Santiment, the daily number of new addresses created for FTM transactions has decreased by 93% over the past seven days.
Likewise, the number of unique addresses involved in daily FTM transactions has decreased by more than 85% over the same period.
Source: Santiment
Read Fantom (FTM) Price Forecast for 2023-24
Investors may have been reluctant to trade FTM last week due to continued plummeting Market Value to Realized Value (MVRV) ratios.
At press time, FTM’s current market value is -39.58%, which is lower than the average price at the time of last purchase. Therefore, most holders can expect to lose at least 40% of their initial investment if they sell now.
Source: Santiment