Why has Fantom (FTM) dropped over 17%?

Why has Fantom (FTM) dropped over 17%?

By Charles Thuo - min read

Fantom (FTM) has experienced a major loss amid the broader crypto market crash.

Currently, Fantom is trading at $1.36, a 17.45% drop in the last 24 hours. It has a trading volume of $2,459,245,631, market cap of $3,480,367,098, and a circulating supply of 2,545,006,273 FTM coins

Let’s look at the factors contributing to the current Fantom (FTM) price drop.

Why is Fantom (FTM) plummeting?

Before we look at what is causing FTM price to plummet, it is important to first explain what Fantom (FTM) token is.

Fantom (FTM) is the native token of the Fantom blockchain network, which is an open-source decentralized smart contract platform that was created as an alternative to Ethereum for dApps and digital assets.

Now turning to the factors behind the current price drop, the main factor at play is Andre Cronje (Fantom DeFi creator) withdrawal of support from the Fantom community and a drop of Fantom total value locked (TVL).

Andre Cronje pullback

One of the factors contributing to the big blow to the Fantom community is the recent announcement by Andre Cronje (Fantom DeFi creator) and his business partner, Anton, that they will be withdrawing their support to the Fantom community.

Anton confirmed this by stating:

‘’Andre and I have decided that we are closing the chapter of contributing to the DeFi/crypto space. There are around ~25 apps and services that we are terminating on 03 April 2022.’’

Andre said on Telegram that they shall be completing the handover as well as giving an assurance that Fantom and its ecosystem project will be able to run on its own.

Fantom TVL drops by 21%

Fantom and most of its ecosystem projects have experienced a huge hit following the Andre Cronje pullback news. By extension, the Fantom total value locked (TVL) saw a drop of 21%.

Although the market reacted negatively to Andre and Anton’s announcement, Fantom foundation was very positive in their latest announcement and they noted:

‘’We’re extremely grateful to Andre for all he did for crypto as a whole. However, Fantom isn’t and never was a one-man team. The development of Fantom won’t be impacted by Andre’s decision. Big things are coming, as scheduled. We’re still on track to ship snap sync and a DB upgrade in the short term and to release middleware improvements such as flat storage and the fvm.’’

It might take time for the Fantom community to recover unless they get someone who is equally talented as Andre to take the Fantom ecosystem to the next level.