- Fantom registered a double-digit uptick as its financial report showed that the project was healthy
- FTM remained bullish and some long-term holders kept their holdings despite its massive plunge over the previous month
Andre Conje’s return to Fantom [FTM] seemed to be a break in the clouds as the former technical advisor of the project revealed some inside information. According to the Medium post published by Cronje, Fantom was in an excellent financial position.
Giving a breakdown of the project’s financial status since 2018, the former chairperson of the Fantom Foundation council claimed that FTM’s cash flow was positive. Fantom had $100,000,000 in stables, and another of the same amount in crypto assets as of November 2022. While admitting that there were other non-crypto assets, Cronje said,
“With an average daily transaction fee of 30,000 FTM this earns us >1,000,000 / year. The average fee per transaction is less than $0.005. Defi revenue — Fantom earns ~$5,980,000 from various Defi strategies across the Fantom and Ethereum ecosystems.”
Repeat the response
Following the update, FTM’s price reacted positively like it did when Cronje announced his comeback. According to CoinMarketCap, the DeFi token had grabbed a 13.83% uptick in the last 24 hours, leading to the price trading at $0.2159. The volume also backed up the price hike, as there was more demand for FTM.
At press time, FTM’s volume skyrocketed 223.45%, driving it to $203.97 million. This indicated that there had been a tremendous number of transactions that passed through the Fantom chain.
Cronje’s “homecoming” sparked a conversation about FTM possibly repeating its 2021 performance. During that period, FTM produced its best performance as its value surged to $3.16 in November 2021, after it began the year around $0.02. But in the short term, what does FTM’s price action have to say?
A sneak peak into what could happen
According to the four-hour chart, FTM was increasingly improving its support. As of this writing, FTM held support at $0.213 — an impressive rise from $0.210 on 28 November. As for its momentum, it sustained a bullish one according to the Moving Average Convergence (MACD).
At the time of writing, the MACD showed that the buying pressure (blue) was above the selling power (orange). So, there was a chance for FTM to sustain the greens.
The Directional Movement Index (DMI) also showed a similar pattern. This was because the Average Directional Index (yellow), at 29.48, indicated a strong movement, particularly as the positive DMI (green) positioned highly at 42.17.
He who waits, gains…
With this update, the Fantom community hoped that the project’s ecosystem remained solid. Interestingly, there have been some investors who enjoyed the 2021 profits and still held FTM regardless of the performance.
Lookonchain revealed that the top 30 FTM holders owned about 62.71% of the total supply. Additionally, the on-chain analyst pointed out a holder who made about $4.7 million profit during the 2021 bull run and still owned about 1.2 FTM tokens.
He sold 2.8M $FTM ($4.73M) at $1.69 in 2022 for a ~$4.7M profit.
— Lookonchain (@lookonchain) November 29, 2022
Backing his stance that FTM was not “dead,” Cronje said it was the only project with a real TVL. He concluded that the last forty years were nothing compared to what Fantom might become in the next thirty years.