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Fantom (FTM), the native token on the eponymous blockchain, sank to an eight-month low on Saturday as merchants gave the impression to be dumping the token in a flurry of promote indicators. Overnight liquidations of the token additionally surged to their highest degree this 12 months.

FTM dropped practically 13% previously 24 hours, and is buying and selling at $0.8366, its lowest since early-September. The token plummeted over 22% previously week, and is without doubt one of the worst weekly performers.

Fantom’s stablecoin, fUSD, has additionally misplaced its 1:1 peg towards the U.S. greenback, and is prone to destabilizing- a worrying prospect for the blockchain. fUSD is down about 23% at $0.77.

String of hacks spook FTM buyers

The token’s newest decline seems to be triggered by main hack in one of many chain’s DeFi protocols. Deus Finance was attacked in a flash mortgage exploit which drained the platform of over $13 million.

While the platform isn’t the largest DeFi alternate on Fantom, that is the second time in two months Deus was subjected to an assault. Another FTM-based protocol, known as Fantasm, was exploited in March.

The repeated hacks seem to have undermined investor confidence within the safety of the protocol. FTM’s losses this week additionally deepened simply after information of the hack on April 28.

Short curiosity in FTM additionally appeared to have skyrocketed this week. Scream Protocol, certainly one of FTM’s largest DeFi platforms, reportedly noticed a record-high variety of liquidations. The protocol’s native token plummeted over 20%.

Data from Coinglass additionally confirmed that FTM noticed over $4 million liquidated overnight- its highest quantity of liquidations this 12 months. 90% of the liquidations have been lengthy positions.

Sell indicators mild up

FTM appeared to have fallen under a key help degree of $0.96. Data from Tradingview exhibits that the token is buying and selling properly under most of its main shifting averages, indicating excessive promoting stress.

Overall sentiment on the token was additionally geared in direction of “sell.”

Still, some value indicators appeared to indicate that the token’s sharp losses could characterize a shopping for alternative. Fantom’s lead builders additionally look like taking steps to restore fUSD’s peg.

With greater than 5 years of expertise protecting world monetary markets, Ambar intends to leverage this data in direction of the quickly increasing world of crypto and DeFi. His curiosity lies mainly find how geopolitical developments can affect crypto markets, and what that would imply on your bitcoin holdings. When he is not trawling by the online for the most recent breaking information, you could find him enjoying videogames or watching Seinfeld reruns.
You can attain him at [email protected]

The introduced content material could embrace the private opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any accountability on your private monetary loss.