Highlights
- TON’s Total Value Locked (TVL) peaked at $600 million but has since retraced significantly.
- Active monthly wallets on the TON blockchain have dropped to 3.68 million, the lowest since July.
- Technical indicators show signs of easing selling pressure in TON price, hinting at a possible reversal.
TON price has experienced a significant decline, plummeting 57.38% to $3.59 since its peak in Q4 2024.
This drop has resulted in a staggering loss of over $9 Billion, with its market capitalization shrinking from $18.53 Billion to $8.96 Billion. Consequently, Toncoin has fallen to the 18th position in market rankings.
The downturn began following the arrest of its founder, Pavel Durov, in August, where he faced 12 serious charges in France. Those charges included drug trafficking and the distribution of child sexual abuse images.
Although TON crypto initially rallied after Donald Trump’s election victory, the gains were underwhelming. While many cryptocurrencies reached new all-time highs, Toncoin price struggled to reclaim its own 2024 peak.
As the effects of Trump’s win began to fade last month, the market entered a correction phase, and the TON price decline accelerated.
This downturn was worsened by the underperformance of several tokens within its ecosystem, such as Hamster Kombat, which failed to meet community expectations.
Also, other tokens on the TON crypto Blockchain, including Tapswap, Notcoin, Catizen, and DOGS, also saw double-digit losses.
Moreover, the TON Blockchain has been losing market share in various sectors, with the total value locked in its decentralized finance ecosystem continuing to decline.
Continue reading to know more; with this downfall, can the TON price recover?
Toncoin’s TVL and Other Key On-Chain Metric Drops
Recently, per CryptoQuant’s data, the DeFi activity on the TON blockchain has seen a notable decline, as reflected in the Total Value Locked (TVL) metrics.
Previously, the TON crypto’s TVL peaked at $600 Million but has since retraced significantly. This indicates reduced capital engagement in decentralized finance protocols.
Meanwhile, this trend aligns with a broader pattern observed in the DeFi industry, where liquidity fluctuates in response to market conditions and changing investor preferences.
The chart indicates that the downturn is primarily driven by liquid staking, with diminishing capital deployment affecting various DeFi sectors, including decentralized exchanges and lending platforms.
Also, data shows a significant drop in the number of active wallets on the TON blockchain.
According to TonStat, the number of active monthly wallets has plummeted to 3.68 million, marking the lowest level since July of last year. This is a stark contrast to the over 12 million monthly wallets recorded in August.
Additionally, the number of on-chain wallet activations has also declined sharply, falling to just 30,778 from a high of 655,000 in August.
This decline underscores the challenges facing the TON blockchain as it navigates a shifting DeFi landscape.
What does TON Price Action Highlight with Technical Tools?
Since December 4th, Toncoin price has been on a steady decline, falling from $7.20. During the same period, Bitcoin experienced a surge, rising from $103,000 to $108,000 between December 4th and 17th. Although Bitcoin faced a subsequent drop, TON price decline has only intensified.
Even when Bitcoin spiked on January 20th following Donald Trump’s inauguration, reaching a new all-time high of $109,000, Toncoin price remained sluggish, and it hovered around a critical support zone between $4.50 and $5.00.
At that time, this lackluster response to bullish market conditions has led some analysts to speculate that TON crypto could continue to fall.
As of now, Toncoin price has broken through key support levels in February and is facing intense selling pressure, currently trading at $3.594 with a 1.51% intraday dip.
The ongoing sell-off suggests that Toncoin may drop further, potentially reaching a bottom support zone near $2.20 to $2.00.
Despite the selling pressure on TON crypto, there are signs that this pressure may be gradually easing, hinting at a potential change in price action.
Technical indicators support this notion. Both AO and the MACD histograms are showing a decrease in bearish momentum, suggesting that the downward trend is weakening.
Also, the Chaikin Money Flow (CMF) is indicating a possible shift, with money flow increasing and approaching the zero line, currently sitting at negative 0.09. This trend implies that buying interest may be starting to surpass selling pressure.
Furthermore, the RSI has made a notable U-turn, moving towards the overbought zone after emerging from oversold conditions. At the time of writing, the RSI stood at 27.11, signaling that selling pressure is subsiding.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
