Interpreting data on the Fantom blockchain during the “Multichain Crisis”: What is the true extent of market panic?

The crisis of Multichain continues, and Fantom, a blockchain supported by smart contracts powered by its native FTM token, has become a focus of attention. Cryptocurrency researcher Ignas | DeFi Research has analyzed and interpreted on-chain data such as TVL and fund outflows for Fantom, and stated that the current on-chain data does not yet show a significant amount of capital outflow.

Multichain ranks second with a trading volume of 129 million US dollars, second only to Stargate. Obviously, cross-chain transaction volume has not shown any obvious panic. According to An Ape’s Prologue, Fantom is most vulnerable to the influence of Multichain wrapped tokens, as 35% of its TVL is locked in them, and 40% of non-FTM tokens on Fantom are issued by Multichain. In addition, stablecoins issued by Multichain account for 81% of the total market value of stablecoins on Fantom. Therefore, we should see a large amount of withdrawals, and indeed the withdrawal amount is higher than the deposit amount by $18 million, but this only accounts for 1% of its total TVL of $1.78 billion. There is not much panic here.

Based on Fantom’s dependence on Multichain, its TVL decreased by 9.55% in US dollars, but according to FTM price adjustment, there is no significant capital outflow. The most obvious sign of panic comes from multi-chain LP on Fantom, which withdrew a total of $33 million in funds from Fantom in 24 hours. Perhaps the worst is yet to come, but the on-chain data currently does not show a large-scale capital outflow phenomenon.


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