- TonCoin’s open interest has increased significantly in recent weeks.
- Network growth has slowed, indicating less interest in new addresses.
Ton Coin [TON] TON has been one of the few market successes over the past few months, notably unaffected by market volatility and bearish sentiment. It is therefore worthwhile to examine the factors behind such success and the scale of interest in Toncoin.
Let’s take a look at TON’s interests.
TON has seen a remarkable surge in value recently, hitting an all-time high of over $8.20 in mid-June, a milestone that few other altcoins have achieved since the 2021 bull run. Much of the increased interest in TON over the past year can be attributed to its close ties to Telegram, a messaging app that boasts a staggering user base of over 1 billion people.
Source: Silkworm
The token has also seen a significant increase in trading activity. Both dollar- and asset-denominated trading volumes have increased significantly, signaling a significant increase in demand for TON beyond price-driven speculation. Correspondingly, TON’s liquidity has also expanded dramatically, with 1% market depth soaring from $2.5M in January to $8M in July.
This market movement is also evident as TON’s open interest hit an all-time high of $287 million in early July, signaling a large inflow of capital into the token. Funding rates have shown volatility, fluctuating between positive and negative territory throughout the year, which can be interpreted as traders having both bullish and bearish sentiment.
While there was a notable bearish trend in May, as seen by the large negative funding rate, recent months have seen a more balanced picture, with both long and short positions being taken.
Source: X
The combination of high prices, growing trading volumes, and improved liquidity is likely to attract the attention of both retail and institutional investors, which could lead to a larger investor base and increased demand for TON in the near future.
What does on-chain data tell us?
At the time of writing, TON was trading at $7.36, with the price up 0.12% over the past 24 hours.
However, it is worth noting that AMBCrypto’s analysis of Santiment data revealed that TON’s network growth has slowed, meaning that interest shown by new TON addresses has dropped significantly recently.
Read Toncoin (TON) Price Prediction 2024-25
TON transaction velocity has also decreased, indicating that the frequency of TON transactions has dropped significantly.
Taking these factors together, we can see that TON is expected to move sideways in the short term before any significant price movements occur.
Source: Santiment
