Was Fantom [FTM]’s performance all smoke and no fire? This report suggests…

phantom [FTM]An EVM-compatible smart contract blockchain platform making multiple headlines in 2022.In fact, of all L1s, Fantom has most dramatic event Q1 2022. Around 4,677 verified contracts were deployed, a 42x increase from February 2021.

But do they reveal a similar fate as the second-quarter reports emerge?

up and down we go

Fantom’s most significant change to the ecosystem is the launch of fUSD, the network’s first native stablecoin. The Fantom Foundation also released an update on May 20 that included information on the maximum collateral factor and minting cap for each backing collateral.

Additionally, the update touts a thriving dApp ecosystem such as automated market makers ghost exchangeand balancer fork Beethoven X.

However, despite a significant step up the ladder, the ecosystem appears to have lost a significant portion, such as Nansen Q2 Update. Daily active addresses and daily transactions both showed red screens, with the former bleeding the most.

The DAA chart has recorded a downward trend in addresses actively using Fantom since April. As of press time, from the 60-80k range to the 50-65k range. This may be due to the crypto market downturn that has been happening since May.

Source: Nansen

Additionally, the daily trading volume fluctuates between 500,000 and 1.1 million transactions per day. These transactions declined slightly until early May and increased significantly in mid-May. This followed the UST decoupling event and the LUNA crash.

Source: Nansen

Daily trading volumes stabilized significantly in June, but not enough to cover the losses that have occurred.

believe in traffic

Fantom’s native token, FTM, has indeed suffered a fiasco in 2022, as the price barely surpasses current resistance levels. At the time of writing, FTM is trading at $0.22 after a 3% price correction. Combined with the above developments, there is indeed a sense of panic.

Source: CoinMarketCap

However, the token does mention some thankfully important attractions as well. FTM witnessed gains in its social metrics last week.According to data from Moon Smash, alt raises its Galaxy score to 74 out of 100. This indicates that the social and market activity of the coin is seen as bullish.

That said, one should never dismiss the possibility of a potential downside before the end of the month.

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