Toncoin (TON) has recently achieved remarkable growth in stablecoin holdings, reaching over $1 billion, yet its market price has remained largely unaffected.
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TON network crossed the $1B milestone in USDT growth.
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Despite this positive news, TON’s price chart has remained muted amid stagnant interest.
With Toncoin’s [TON] USDT stablecoin growth experiencing a +670% surge over the last six months, its growth trajectory positions it as the 10th most dominant network in the stablecoin market, just behind Ethereum-based Optimism [OP].
Source: CryptoQuant
Key Drivers Behind Toncoin’s Recent Growth
In light of Toncoin’s impressive growth in stablecoin holdings, CryptoQuant analyst Burak Kesmeci has suggested that this performance ties closely to the broader increase in stablecoin utilization and the competitive transaction fees that Toncoin offers. He stated,
“I expect USDT supply to expand to $200 billion (from current $120B) during the bull rally. This growth will likely drive further demand for fast and low-cost blockchain networks like TON, leading to continued growth in the amount of USDT on the TON network.”
Additionally, the average USDT transfer fee on the TON network has seen a significant decrease, plummeting from $0.061 to $0.035—a reduction of about 42% within the same timeframe. This positions Toncoin as an appealing option for users looking for cost-effective solutions.
Source: CryptoQuant
Toncoin’s value surged approximately 80% between May and June, largely mirroring the overall traction seen in the stablecoin market. However, the price faced a setback in August, which correlated with external factors such as the arrest of Telegram’s founder. Regardless of this volatility, Toncoin has remained confined below its long-term trendline resistance.
This ongoing trend is evidenced by the flat On-Balance Volume (OBV) indicator, signifying a weaker demand in the spot market and ongoing challenges for Toncoin’s price moving forward. A decisive breakout beyond the $5 threshold may be necessary to instigate a shift in market dynamics and provide upward momentum.
Source: TONUSDT, TradingView
At the moment, there is notable bullish positioning among traders on the Binance exchange. Approximately 53% of top traders are holding net-long positions on Toncoin, which implies a cautious optimism regarding a potential recovery in price levels.
Interestingly, the selling pressure has also shown signs of moderation. In September, a sharp decline in exchange selling activity was recorded, but this metric saw a gradual increase in October, indicating brewing selling pressures.
For a deeper analysis, you may refer to the Toncoin [TON] Price Prediction 2024-2025.
Source: Santiment
Furthermore, the supply held by larger investors, or whales, has increased alongside these trends, suggesting a strategy of purchasing discounted Toncoins from retail investors. This phenomenon could imply that the net selling pressure observed might be balanced by whale accumulation.
That said, a strong resurgence in Toncoin’s price will hinge on more active interest from investors, as evidenced by the current low daily active addresses.
In summary, while the acceleration in stablecoin growth on the Toncoin network is notable, it may require additional factors beyond this growth to catalyze meaningful improvements in Toncoin’s price performance.
Conclusion
In conclusion, Toncoin’s remarkable growth in stablecoin holdings to over $1 billion showcases its potential within the cryptocurrency landscape. However, the muted reaction in its pricing reflects the intricate balance of market demand, trader positioning, and external influences. For Toncoin to experience significant upward momentum, it must foster greater market engagement while overcoming current price resistance levels.
