The FET price is among top crypto gainers today after pumping 15%, now at $0.70. This is token’s highest level since February.
Popular YouTuber ‘Gerhard’ weighed in on the situation around FET.
What you'll learn 👉
Strong On-Chain Liquidity Drives Resilience
Despite recent market pullbacks, FET shows unusual resilience because of its deep on-chain liquidity. Unlike many altcoins primarily traded on centralized exchanges, FET maintains liquidity across blockchain networks.
The Ethereum version of FET currently has $4.2 million in liquidity and approximately 145,000 holders. Wallet distribution analysis shows steady growth in mid-sized investors, with holders of $1,000+ (about 2,000 FET) consistently increasing. The $10,000+ holder category is also growing, while whale accounts holding over $100,000 number around 400 wallets, representing just 0.5% of total holders.
When comparing blockchain networks, Ethereum remains the dominant chain for serious FET investors. The Binance Smart Chain hosts 45,000 FET holders, but liquidity is much lower at only about $100,000 per pool. Whale presence on BSC is minimal with only 20 wallets holding large positions.
Trading Patterns Reveal Market Dynamics
Both Ethereum and BSC networks show more buyers than sellers, supporting a net accumulation trend for FET. However, total trading activity has been declining across chains, which explains the overall weakening price action prior to today’s surge.
FET dropped from $2 to $0.60 in recent months, and despite today’s recovery, long-term trends appear bearish. Recent price volatility hasn’t triggered major changes in wallet holdings, suggesting most activity is driven by trading bots or short-term arbitrage rather than retail investors.
Almost all on-chain activity comes from returning users, confirming theories about automated trading dominance. Very few new holders are entering the market, even during price spikes, adding to concerns about long-term enthusiasm.
Since 2019, the FET price has underperformed Bitcoin by 94%. While the token experiences short bursts in price with 500-600% rallies that can temporarily outperform BTC, SOL, and ETH, these movements are unpredictable and rare. These rallies are typically followed by steep drops, demonstrating very high volatility.
Read also: XRP Supply Chain Breach: Private Keys at Risk in Ripple Attack
For investors considering dollar-cost averaging into FET, Gerhard warns this strategy would only work with long-term conviction due to unpredictable movements and weak fundamentals.
FET had an aggressive early vesting schedule, which contributed to early price crashes. While inflation has slowed, it’s still ongoing, creating supply pressure that remains a concern for valuation.
The YouTuber advocates for a strategy based on technical analysis and trend following, using a 120-day Simple Moving Average for Bitcoin as a buy/sell signal. Currently, BTC is below the 120-day SMA, so he maintains a bearish outlook despite today’s price action.
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