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Toncoin sees decline in key area: Any impact on TON?
In a recent development, Toncoin’s number of swaps on the TON network decentralized exchanges has experienced a sharp decline. This sudden drop raises concerns about the potential impact this may have on the value of Toncoin (TON).
According to the data from CryptoQuant, it is clear that there has been a massive drop in daily users on STON.fi and DeDust platforms. As of late, the average daily users on STON.fi have declined to 13,300, while DeDust has seen its user base dwindle down to 5,250. This significant drop from September levels is a stark reminder that Toncoin’s network-based platforms are not as popular as they once were.
The decline in interest for swaps can be attributed to several factors. Firstly, the reduction in open positions among traders, who have either liquidated or reduced their exposure to decentralized exchanges. Secondly, uncertainty has surrounded the TON community since the arrest of its founder months ago, leading to a loss of trust and subsequent participation in network-based platforms.
Lastly, the overall crypto market has been experiencing unfavorable conditions following the Federal Reserve’s rate cuts. This shift towards staking from decentralized trading could be an attractive entry point for investors.
Notably, this decline in interest for swaps reflects decreased buying pressure as investors express uncertainty about the market direction and opt to take cautious positions. As a result, Toncoin has experienced a sharp drop in demand amid market uncertainty.
The Santiment data further supports this notion, as it is evident that Toncoin’s stock-to-flow ratio has experienced a decline over the past three days, signaling oversupply and reduced scarcity. This increased supply has led to an influx of TON assets on exchanges, resulting in an exchange flow balance that has surged to 3,459.
The data suggests that investors have become overly cautious due to the market uncertainty, with most opting to close their positions while reducing their risks. As a result, Toncoin is at risk of plummeting down to $5.2 if these conditions persist. However, if investors perceive this decline as an opportunity to buy, it could lead to a breakout above the consolidation range and potentially reach $6.1.
In conclusion, it appears that Toncoin’s decline in key areas has led to decreased demand for its services, reflecting investor caution amid market uncertainty.
Source: ambcrypto.com
