Fantom (FTM) On-Chain Activity Soars Despite 46% Market Cap Drop Since December 15th

Fantom (CRYPTO: FTM) saw a surge in onchain activity after a 46% market cap drop since December 15.

What Happened: Daily active addresses on the Fantom network have surged to a 19-month high, according to data from Santiment.

The blockchain platform is also seeing a massive accumulation by whales. Over the last four days, those holding between 10 million and 100 million FTM have added a combined 31.5 million more coins, worth around $23 million at the time of writing, Santiment said.

The upcoming upgrade for Fantom could be a key factor in the activity. The platform is currently undergoing a rebranding, with its tokens being bridged to the new Sonic (S) network.

A month ago, FTM took a major hit, declining by 60% from its all-time high following the Sonic upgrade.

At the time, several analysts attributed the decline to a combination of factors, including widespread FTM FUD (fear, uncertainty, and doubt) within the community.

A major factor behind the sell-off is the reluctance of a large number of FTM holders to bridge their tokens to the new Sonic network.

This hesitation stems from concerns regarding the migration process and the potential for complications with cryptocurrency exchanges.

To add to the confusion, some exchanges have used the term “delisting” instead of “migration” when referring to FTM, further alarming investors.

The overall uncertainty surrounding the transition has created a negative sentiment within the FTM community, leading to a sharp decline in the token’s value.

The transformation of FTM into S with the Sonic upgrade is set to be a significant development for decentralized finance (DeFi) on the platform.

With the upgrade, users can anticipate blazing-fast transaction speeds and a thriving ecosystem.