- Network activity has decreased, indicating low demand for TON.
- The notable announcement did not have a positive impact on Toncoin’s development activities.
Toncoins [TON] The native token was one of the cryptocurrencies that had an eye-catching performance this week. At the time of writing, the price of TON was $4.82, corresponding to an increase of 8.34%.
However, AMBCrypto’s analysis shows that the upward trajectory may be interrupted. According to our findings, his activity on the Toncoin blockchain on March 26th was at an exceptionally high level.
TON is stuck in a rut
However, when we reviewed the data at press time, the situation had changed. At the time of this writing, 24-hour active addresses on the network were far from the peak mentioned above.
Active addresses indicate the level of daily interaction that users have with the project. As the metric increases, the number of unique addresses included in the transaction increases.
Therefore, the decrease in network activity suggests that the demand for TON has decreased. In terms of prices, a decline in demand is a bearish signal. Therefore, Toncoin’s price fluctuations could be negatively affected if activity remains low.
Another indicator Refueling The bearish theory was the Gini index. For the uninitiated, an index measures the distribution of coins among addresses.
Source: Santiment
A decline in the Gini index is usually a sign that token holders are cashing out. On the other hand, an increase suggests accumulation.
At the time of writing, the TON index had been declining since March 24th. Following the definition above, this means that the participants’ perception of the token is no longer optimistic.
If this distrust continues, TON’s price may correct. However, bullish momentum still exists due to recent developments around this project.
It’s open season on the network
On March 27th, 21Shares, the world’s largest ETP issuer, announced the launch of Toncoin Staking ETP. ETP stands for Exchange Traded Products and represents financial products pooled on an exchange.
According to officials statement, the company noted that the decentralized and open nature of Toncoin’s network makes it a suitable option. said,
“With our ETP, investors can now enjoy the benefits of staking Toncoin while leveraging the liquidity and convenience of traditional financial markets.”
Despite the release, development activities on the network stagnated. As of this writing, Santiment showed that his indicator of development activity was flat at 0.0059. This was proof that Toncoin has not undergone any major upgrades recently.
Source: Santiment
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If this continues, TON’s price may not reach $5.61 as it did a few days ago. Meanwhile, traders were bitterly at odds over potential prices.
For some, TON may be in a short-term downtrend. However, the bullish side believes that the development team can attract more users and increase the scale of TON’s adoption.
