Despite the recent shutdown of one of its Decentralized Exchanges (DEXes), Fantom has seen a substantial increase in DEX volume. In fact, the volume has skyrocketed 13x in just a week, signaling a potential return of trust among market participants. This surge in Fantom DEX volume, among other indicators, paints a promising picture for Fantom’s future.
A Remarkable Uptick
The Fantom DEX volume surges have been nothing short of remarkable. Based on the findings of digital asset research firm ASXN, the DEX volume on the Fantom protocol escalated to $143.1 million over the past seven days. This represents an astonishing 1302.7% leap from the previous week’s volume of just $10.2 million.
Driving Forces Behind the Surge
Looking deeper into the protocol, the major driving force behind this surge appears to be SpookySwap. This Automated Market Maker (AMM) provides constant liquidity for traders, enabling them to trade against a liquidity pool. Data from DefiLlama revealed that SpookySwap saw an 181.50% increase in fees generated, making it the ninth-highest fee earner in the DeFi landscape.
This increase in DEX volume suggests a renewed stability in the Fantom protocol, despite the recent forced shutdown of SpiritSwap, the former top DEX on Fantom. SpiritSwap’s closure was due to the team’s inability to cover ongoing operational costs and the repercussions of the Multichain hack.
Signs of Trust Restoration
Fantom’s Total Value Locked (TVL), which is a measure of the value of assets locked or staked in a protocol, was also negatively impacted during the SpiritSwap crisis. However, it has seen a slight recovery over the past 30 days, with the TVL now standing at $57.89 million, marking an 8.34% increase over the last month.
The higher the TVL, the more trustworthy a decentralized application (dApp) is perceived to be. Therefore, the mild rise in Fantom’s TVL suggests that trust is slowly being restored among market participants, leading to an increase in unique deposits into chains operating under its protocol.
Furthermore, Fantom’s development activity, as measured by the rate of public GitHub repositories connected to the project, has been on an upward trajectory, according to data from Santiment. This indicates that developers are actively working on improving the network.
Moreover, Fantom’s social dominance, which measures the hype and attention gained by comparing the percentage of discussion of one asset to others, has also increased, suggesting that Fantom is gradually regaining the spotlight.
For those interested in keeping a close eye on these promising developments, the cryptoview.io application provides a convenient and comprehensive platform to track the dynamics of the crypto market.
