Fantom (FTM) Outplays UST’s Worst Performance – Here’s Why
Terra’s downfall effects still send shockwaves in the cryptocurrency marketplace with alt attempting to recuperate from May 9 and 11 slumps. Most altcoins saw some upticks that took the north. However, the situation got worse for Fantom. The altcoin plummeted further on May 14, invalidating all May 13 recovery attempts.
Fantom Looks Chilling
After impressive actions on the charts that saw FTM surge 45%, the alt traded near $0.43 before slumping lower due to its ecosystem developments. Remember, SpiritSwap DEX, among the top ten protocols on the Fantom chain, suffered a massive attack as fraudsters hijacked the platform’s domain because of the GoDaddy exploit.
Meanwhile, the attacker altered swap parameters after copying SpiritSwap’s codebase. That saw the hacker receiving all swaps in his wallet. Nevertheless, the decentralized finance (DeFi) protocol noted the exploit within no time and halted the platform immediately. It also advised users not to execute swaps as the protocol lost $18K.
The DEX team said it would control the domain or take SpiritSwap to another domain and re-launch router swaps to avoid the occurrence. Nevertheless, the backlash that emerged due to FUD had Fantom losing the 45% gain, currently 31.57% down from May 13 peaks.
That saw Fantom dipping further inside the oversold region as the decentralized finance (DeFi) chain lost more than $2 billion within ten days.
For now, Fantom performs worse than the most distressed token after LUNA, UST stablecoin. Moreover, the fear and anticipation of reaping at Fantome’s May 13 peak saw investors selling around 53 million $FTM worth approximately $15.9 million.
Also, the total on-chain transaction touched 200 million $FTM, the highest Fantom platform recorded since September last year.
Fortunately, the users are yet to escape as Fantom has more than 88K investors. However, failure to recover ASAP would mean continued declines in the price charts. That means extended selling, and investors might start to exit the network.
Meanwhile, developers promise quick resolutions. Also, FTM appeared on a recovery path at the moment as the broad market attempts upside moves.
What are your views about the FTM ecosystem issues? You can comment in the section below.
Editorial credit: Dennis Diatel / shutterstock.com