Fantom (FTM), the native token on the eponymous blockchain, sank to an eight-month low on Saturday as merchants seemed to be dumping the token in a flurry of promote indicators. In a single day liquidations of the token additionally surged to their highest degree this 12 months.
FTM dropped practically 13% previously 24 hours, and is buying and selling at $0.8366, its lowest since early-September. The token plummeted over 22% previously week, and is among the worst weekly performers.
Fantom’s stablecoin, fUSD, has additionally misplaced its 1:1 peg towards the U.S. greenback, and is vulnerable to destabilizing- a worrying prospect for the blockchain. fUSD is down about 23% at $0.77.
String of hacks spook FTM buyers
The token’s newest decline seems to be triggered by main hack in one of many chain’s DeFi protocols. Deus Finance was attacked in a flash mortgage exploit which drained the platform of over $13 million.
Whereas the platform just isn’t the largest DeFi trade on Fantom, that is the second time in two months Deus was subjected to an assault. One other FTM-based protocol, referred to as Fantasm, was exploited in March.
The repeated hacks seem to have undermined investor confidence within the safety of the protocol. FTM’s losses this week additionally deepened simply after information of the hack on April 28.
Brief curiosity in FTM additionally appeared to have skyrocketed this week. Scream Protocol, one in every of FTM’s largest DeFi platforms, reportedly noticed a record-high variety of liquidations. The protocol’s native token plummeted over 20%.
Knowledge from Coinglass additionally confirmed that FTM noticed over $4 million liquidated overnight- its highest quantity of liquidations this 12 months. 90% of the liquidations have been lengthy positions.
Promote indicators mild up
FTM appeared to have fallen under a key help degree of $0.96. Data from Tradingview exhibits that the token is buying and selling nicely under most of its main transferring averages, indicating excessive promoting stress.
Total sentiment on the token was additionally geared in direction of “promote.”
Nonetheless, some worth indicators appeared to point out that the token’s sharp losses could signify a shopping for alternative. Fantom’s lead builders additionally seem like taking steps to restore fUSD’s peg.
The introduced content material could embrace the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any duty on your private monetary loss.
