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Recent trends in the Toncoin (TON) blockchain reveal a complex shift in investor behavior, marked by a decline in Total Value Locked (TVL) while staking participation thrives.
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This dynamic suggests that while some investors retreat from high-risk decentralized finance (DeFi) protocols, others are pivoting towards secure staking opportunities.
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“The rise in staking participation indicates a growing preference for stability as investors seek reliable yield amidst market volatility,” said a COINOTAG analyst.
Explore how the TON blockchain demonstrates resilience through increased staking, despite a notable decline in Total Value Locked (TVL).
Understanding the decline in TON’s TVL
COINOTAG’s analysis of TON’s TVL from mid-2024 to early 2025 illustrated a significant drop, which may indicate a slowdown in network activity or a broader withdrawal from DeFi protocols. The implications of this decline could be far-reaching, signaling both a shift in investor sentiment and potential impacts on future market stability.
Source: CryptoQuant
However, a noteworthy aspect of this decline is that Liquid Staking has remained a substantial component of the TVL. This suggests that while the overall locked value has decreased, there remains a strong inclination towards staking, indicating a preference for lower-risk investments.
This shift away from higher-risk DeFi investments could reduce the volatility traditionally associated with DeFi exposure. As the trend of decreasing TVL continues, TON’s price might stabilize, with an increasing proportion of funds locked in less volatile staking activities.
A growing shift toward secure yield
Further analysis of the Staking TVL Ratio, despite the overall drop in TVL, has shown an upward trajectory. This ratio now represents a significant portion of total value as investors focus on generating returns through staking.
Source: CryptoQuant
The growing preference for staking implies that investors are now prioritizing rewards over the high risks associated with traditional DeFi strategies, which could lead to a more stable price for TON. The rising staking ratio indicates that price movements may become less erratic, thereby fostering conditions for potential appreciation over time.
Speculation or stability?
An analysis of netflows indicates a significant spike in aggregated exchange inflows around mid-February 2025, coinciding with a month of heightened market activity. After this surge, netflows have since stabilized, suggesting that the initial rush was likely driven by market speculation or a particular event within the crypto ecosystem.
Source: IntoTheBlock
The subsequent stabilization implies that the market may have absorbed this speculative surge, potentially setting the groundwork for a period of consolidation for TON’s price. Following such speculative spikes, TON may experience a consolidation phase that lays the foundation for future growth as market sentiment stabilizes.
The impact of active participation
Lastly, an examination of active addresses reveals consistent growth from late 2024 into 2025, particularly among addresses maintaining balances. This uptick in network activity correlates closely with the rise in staking participation, indicating strong engagement from both new and existing users within the staking ecosystem.
Source: IntoTheBlock
A healthy increase in active addresses often correlates with heightened demand for assets like TON, potentially driving price increases in the future. The significant rise in active addresses—especially those accumulating balances—paints a positive picture for TON, suggesting a bullish trend aided by increased network participation.
In summary, despite the recent decline in TON’s TVL, the surge in staking participation combined with the increase in active addresses indicates a transition toward greater stability and potential growth. These developments suggest that the TON ecosystem is increasingly characterized by staking-driven stability, positioning itself for long-term value growth.
Conclusion
In the context of the evolving landscape of Toncoin, the focus on staking over traditional DeFi risks may foster stability in the price of TON, as investor sentiment continues to shift toward more secure yield opportunities. The current trends point to a resilient blockchain ecosystem poised for future growth, underpinned by a more engaged and active community.
