Whale Activity Draws Attention to Fantom (FTM)

As the year nears its close, Fantom (FTM) has captured the interest of market participants following a whale who transferred significant amounts of FTM tokens to Binance today.

A crypto on-chain analyst, known as the Data Nerd, spotted and shared the development on the X platform. This activity is significant as it may cause bearish trends in Fantom’s price.

Whale Deposits Massive Amounts of FTM

According to insights from the crypto analyst, the whale deposited 10 million FTM tokens valued at $8.17 million to Binance today. Metrics reveal that the trader previously accumulated 23.45 million FTM tokens over the last two years with an average price of $0.618.

This transfer suggests the trader intends to sell or utilize these tokens in the DeFi markets. Alternatively, they may hold and use them post the Fantom rebranding. If the trader sells the 10 million FTM tokens today, they would realize a profit of $2 million.

> 2 hours ago, a whale 0x8be deposited 10M $FTM (~$8.17M) to #Binance.
> 2 years ago, 23.45M $FTM were accumulated at avg entry $0.618.
> Not sure whether they will sell or wait for rebrand???
> If selling, they will have realized profit ~$2M.
> Address: 0x8be pic.twitter.com/W2w8atexG1
> — The Data Nerd (@OnchainDataNerd) December 28, 2024

This funds movement might be a response to Binance’s recent announcement about facilitating FTM rebranding and token interchange.

According to reports made on December 24, Fantom will change its name from “Fantom (FTM)” to “Sonic (S)” in early January 2025. To prepare for this transition, Binance stated that it would halt withdrawals and deposits of Fantom and remove all related trading pairs, including FTM/ETH, FTM/USDT, and FTM/BTC starting January 13 at 3:30 UTC.

After the rebranding process, the FTM token will use the ticker “S” on Binance, and trading for S/ETH, S/USDT, S/BTC, S/USDC, S/EUR, S/BNB, S/TRY, and S/FDUSD trading pairs will commence on January 16 at 8:00 UTC.

Following the announcement, investors and traders expressed concerns about potential impacts of the token transition on Fantom’s price. However, all Fantom tokens will be exchanged with Sonic at a 1:1 ratio (1 FTM = 1 S), indicating no significant price effect.

Fantom Price Updates

At the time of writing, FTM is trading at $0.7931, down 6.9% from the previous day. It has also decreased 17.80% over the past week, underperforming compared to the global digital assets market, which is up 0.10% currently. Trading volume has dropped 3.40% to $356.619 million, highlighting a recent decline in market activity.

These downturns suggest reduced participation from investors and traders after the announcement. The interest among traders and long-term holders appears bearish, as they continually open new positions and sell tokens, based on on-chain metrics from Coinglass.

Additionally, metrics from FTM spot inflow/outflow reveal substantial inflows of FTM tokens to exchanges recently. This indicates that long-term holders are sending tokens to exchanges, reflecting a potential downward trend, but also showcasing a possible buying opportunity.

According to Coinglass, FTM open interest has decreased by 5.08%, indicating new position establishments and reduced trader participation, suggesting rising caution among investors.