Fantom started April 2022 at almost $1.70 only to fall steadily. Every brief rally was followed by a continued downtrend. What happened? Fantom (FTM) traded at around $0.75 recently.
Fantom is a high-performance and scalable smart-contract platform. It offers its users a potential alternative to other cryptocurrencies. For example, the Fantom Foundation will launch version 2.0 of its fWallet. At the time of writing, Fantom had a market cap of $1.929 billion. This ranked it #49 on the CoinMarketCap ranking.
On April 28, hackers exploited the Decentralized finance (DeFi) application Deus Finance. This is the second exploit in two months. The attacker gained over $13.4 million of cryptocurrency. This happened on the Fantom Network. This event does not explain Fantom’s continued plunge in the last month.
Crypto investors may acknowledge that Bitcoin’s drop pulled Fantom and other cryptos lower. Bitcoin fell from over $45,000 at the start of April to around $38,300 by the end of the month. Ethereum fared poorly, too. The crypto market is undeniably correlated to stock markets. Whenever market panic rises, investors have less appetite for risky assets. Cryptocurrencies, especially Fantom, are historically highly volatile. Until the stock market volatility falls, brace for FTM to fall further. FTM may re-test the $0.42 – $0.52 trading range in 2020-2021.