Fantom price could pare losses on increasing demand as daily transactions, gas fees spike
- Fantom gas charges have climbed to 10,000 Gwei, alongside rising transaction activity, a sign of increasing demand.
- Transactions on Fantom climbed to nearly three million on Wednesday.
- FTM price decreased 8% over the last week.
Fantom, the token of a DeFi blockchain platform, has noted an increase in its price over the past month. FTM has yielded nearly 31% gains for holders in the past 30 days. FTM price is likely to climb higher with bullish outlook from on-chain metrics.
With rising transaction activity, FTM gas fee soared, hitting the 10,000 Gwei mark.
Fantom gas fee spikes, climbs to 10,000 Gwei
When transaction activity increases, blockchain networks record an increase in gas fee. According to blockchain security firm PeckShield, Fantom’s gas charges climbed from 6,500 Gwei to 10,000 Gwei on Thursday.
The rising gas charges are likely related to Fantom Inscription FRC-20. Similar to BRC-20, inscriptions on the blockchain, FRC-20 is driving a rise in transactions on the Fantom blockchain.
#PeckShieldAlert #Fantom Gas Fee pic.twitter.com/0GXZVyRRx0
— PeckShieldAlert (@PeckShieldAlert) November 23, 2023
On-chain metrics support bullish thesis for FTM price
The rising gas charges are a sign of rising demand for FTM alongside higher daily transactions on the blockchain. Alongside bullish on-chain metrics, it supports a thesis for an FTM price recovery.
Network activity and Volume recorded on Fantom increased alongside a price increase, supporting FTM gains. The token could recover from the recent pullback in its price with a rise in demand among market participants.
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Network Growth, volume and FTM price
FTM supply on exchanges has nosedived between November 4 and 22, dropping from 32.27% to 31.29% of the total supply. The Exchange Flow Balance that tracks net flow to centralized and decentralized exchanges recorded nearly balanced inflows and outflows. There is a likely decline in selling pressure on FTM.
 [16.14.57, 23 Nov, 2023]-638363350213115570.png)
Supply on Exchanges (as % of total supply), Exchange Flow Balance and price
At the time of writing, FTM price is $0.3020 on Binance. The token is likely to continue its recovery, with increasing demand for the asset and bullish on-chain metrics.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
