As the supply of FTM on exchanges continues to decrease, the possibility of a price increase remains strong. About 43% of investors are holding onto their FTM investments, even without making a profit yet, in anticipation of market recovery and higher prices.
If you want to learn more about FTM’s price dynamics, check out the full analysis for insights into potential future movements.
Fantom’s Decreasing Exchange Supply Fuels Price Surge
Since March 1, the quantity of FTM tokens available on exchanges has dropped notably from 655 million to 643 million. This decline is closely linked to a significant increase in Fantom’s price, soaring from $0.50 to $0.82 in just 12 days, marking an impressive 64% growth.
FTM Price and Supply on Exchanges. Source:聽Santiment.
The diminishing supply of FTM on exchanges indicates fewer tokens available for trading, buying, or selling. This became evident when the supply dropped by 1 million between March 10 and March 13.
A reduced supply on exchanges typically leads to upward pressure on prices. Buyers may be willing to pay more for tokens when they are less readily available. The decrease in FTM on exchanges suggests that investors are increasingly transferring their tokens to private wallets for long-term storage.
Investors often make this strategic move in anticipation of further price appreciation. By moving tokens to private wallets, they contribute to tightening the circulating supply available for immediate trading, potentially fueling additional price increases.