June 10, 2023

the phantom [FTM]An EVM-compatible smart contract blockchain platform, made multiple headlines in 2022. In fact, of all L1s, the Phantom The most dramatic activity In Q1 2022. Approximately 4,677 verified contracts have been placed which represents a 42x increase since February 2021.

But the Q2 report came into picture, did they reveal the same fate?

Up and down we go

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

Additionally, the update boasts a rich ecosystem of dApps, such as automated market makers Spooky Swapand balancer forks Beethoven X.

However, despite an important step up the ladder, the ecosystem seems to have lost a significant part Nansen’s Q2 Update. Both daily active addresses and daily transactions showed a red picture with the former bleeding the most.

The DAA graph has recorded a downward trend in addresses actively using phantom since April. 60-80k range to 50-65k range at press time. This could be due to the market downturn in crypto that has been happening since May.

Source: Nansen

Furthermore, daily transactions fluctuate between 500k-1.1 million transactions per day. These transactions showed a slight decline till the beginning of May and increased significantly in the middle of May. This was after the UST de-pegging event and LUNA collapse.

Source: Nansen

In June, daily trading was fairly stable, but not enough to sustain the losses incurred.

Trust the flow

Phantom’s native token FTM suffered a massacre in 2022 as the price barely broke above the current resistance level. At the time of writing, FTM traded at the $0.22 mark after a 3% price correction. This coupled with the aforementioned developments will indeed create a sense of dread.

Source: CoinMarketCap

However, Token said some important sights to enjoy. FTM witnessed an increase in its social metrics last week. According to data from Lunarcrushalt raised its Galaxy score to a high of 74 out of 100. An indication of a perceived buoyancy in the social and market activity of the currency.

That said, the possibility of a possible fall by the end of this month should never be ruled out.

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