The Fantom price has dropped below a key support level as investors continue worrying about the platform’s ecosystem. FTM is trading at $1.08, which is the lowest level it has been since September 2021. It has dropped by over 67% from its highest level this year.
Fantom has lost momentum
Fantom is a leading layer 1 network that has become a major competitor to the likes of Ethereum and Solana.
The platform has been used to develop some of the best-known DeFi and non-fungible token (NFT) projects in existence today.
According to DeFi Llama, there are over 200 apps built in Fantom that have a total value locked (TVL) of over $6.25 billion. This makes it the sixth-biggest platform in the world after Ethereum, Terra, BNB Chain, Avalanche, and Solana.
The Fantom price has dropped by over 67% from its highest point this year because of the rising concerns about the ecosystem. Last week, it was reported that two of the biggest developers in the ecosystem were leaving and terminating about 25 projects. The two are Andre Cronje and Anton Nell.
As a result, there were concerns about the health of the ecosystem, which pushed the TVL of Fantom significantly. It dropped from over $11 billion in February to $6.25 billion today.
In a statement, Fantom Foundation downplayed the impact of the two developers’ claims. It said that the two had not terminated the 25 projects. Instead, they had transferred the projects to existing teams who been developing them.
A closer look at the ecosystem shows that most apps have lost a lot in terms of their TVL. For example, SpookySwap’s TVL has dropped by 42% in the past 30 days. In the same period, Geist Finance and Scream have lost 31% and 41%, respectively.
Fantom price prediction
The daily chart shows that the FTM price has been in a deep downward trend in the past few days. It has dropped by about 68% from its all-time high. A closer look reveals that it has fallen below the key support level at $1.1560, which was the lowest level on December 4th.
The Fantom price has moved below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved below the oversold level.
Therefore, there is a likelihood that the bearish trend will continue in the near term. If this happens, the next key support will be at $0.90.