- FLOW remains among the worst-performing tokens in the cryptocurrency market.
- FLOW’s parent firm Dapper Labs reduced its staff by 22% in November.
- The alternative token trades at all-time lows.
FLOW token remains one of the worst-performing digital coins in the cryptocurrency market. The alternative token changes hands at all-time price lows. The bearish run stayed severe despite substantial development milestones on the network. Dapper labs developed the Flow blockchain in December 2019.
The blockchain uses FLOW as its native coin. Remember, Dapper labs are behind the NFT NBA Top shot and CyptoKitties. Nevertheless, why is the alternative token on a downward spiral? Let us check the asset’s ups and downs of 2022 and what we might expect from its price action come next year.
Dapper Labs Cuts Staff by 22%
The company behind FLOW, Dapper Labs, launched the project in 2019 with funding worth $11 million. The investors included Warner music group, AppWorks, Accomplice, and Andreessen Horowitz. Warner music group’s Jeff Bronikowski commented on the deal, stating that they solidified their collaboration with a strategic investment after discovering that Dapper Labs understood their vision.
Dapper Labs saw an attractive initial success amid the 2020-21 NFT boom and secured notable projects like UFC Strike, NBA Top Shot, and NFL ALL Day. Nevertheless, the 2022 crypto winter remained a massive hurdle to the firm.
Dapper Labs CEO Roham Gharegozlou declared a 22% staff cut, citing macro environment challenges. Also, the CEO stated that the company’s quick success within two years prevented it from being nimble, aligned, and community-driven. The news saw FLOW dipping by 10% on the day, sliding to $0.914 from $1.0245.
Poor NFT Performance
FLOW price has declined by more than 98% since NBA Top Shot’s bull run started to deteriorate in April last year (2021). Non-fungible tokens on the network are witnessing an uptake decline and sharp monthly slumps in trading volumes. Dapper’s leading project, NFL ALL DAY, has seen a dismal performance this year.
Cryptoslam shows the NFT’s selling price has declined from March’s $56.59 to December’s $16.24. Moreover, the trading volumes hover at a $26,766 quarterly low. NBA Top Shot recorded the most deteriorated performance in two years – with a $2.1M monthly trading volume. Other Dapper NFT projects presented similar performances.
On the Optimistic Side
Despite the ugly price show, the FLOW blockchain has recorded notable development growth. Its 2022 performance recap indicated that this year was the best for its developers. In 2022, 7K new devs deployed 2,430 smart contracts on FLOW.
Moreover, the FCL (FLOW Client Library) downloads gained 100% from last year to 630K. New ATHs (all-time highs) included September’s more than 550 active contracts, May’s 30K FCL downloads, 25 million ATH NFT transactions (the highest a chain has seen), and 128K FCL discovery requests.
The blockchain saw 90 development funding proposals. They accepted 35 as 69 attained milestones. Moreover, the ecosystem enhanced its ‘spook’ associated downtime from last year’s four hours to 30min each quarter in 2022.
FLOW Price Outlook
FLOW blockchain developments have focused on onboarding new builders and improving the protocol. Meanwhile, the alt suffered amid the crypto winter, losing 90% from early January at $8.8 to around $0.89.
The MACD shows a declining price momentum, whereas the 14d RSI showing FLOW traded within an oversold region. That means chances of upside price reversals. Nevertheless, the market revival from Dapper Labs and the 2022 minor bull run are missing essential ingredients to send FLOW back to its lost glory.
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