While Fantom may still suffer, many cryptocurrencies have recovered significantly after the May 9 collapse. However, recent moves by the asset’s own investors are delaying Fantom’s return back to normal.
Is Fantom Floundering?
FTM had a fast fall; however, it rapidly recovered. FTM fell again after increasing by 43.11%. It was exchanging at $0.38 at the time of writing, down 6.87% from the previous day. This was prompted by the panic selling immediately after the fall, which wiped away more than $50 million.
Beginning on May 9, investors continually sold their shares, resulting in 127 million FTM entering the markets at the time of this post.
Investors are correct in their decision to sell, according to the analysis. Given the position of the market, traders and investors who primarily invested in FTM for-profit appear to be extremely inclined to sell.
Fantom’s Market Performance
Since October 2021, FTM holders have been undergoing more losses than profits, which has exceeded predictions, and soon after the crash, the same losses soared to $48 million at one moment.
Their actions appear reasonable, with the asset’s market value swiftly dropping and reaching an all-time low. However, it discourages prospective investors, who should, in retrospect, consider it as a precaution because, on a broader scale, they are being rescued from widespread losses.
Furthermore, the network-wide distribution of Fantom has been primarily in losses since the beginning of March, with quantities reaching as high as 62 million FTM at one time.
Typically, the major worry of every new investor is the expected return on investment. Furthermore, according to FTM’s risk-adjusted returns, the results are insufficient to entice new investors.
The Sharpe Ratio, now at negative 3.55, makes it evident that FTM will not return to its original state for some time. Similarly, most cryptocurrencies in the market are going through hard times.