Toncoin Exchange Activity Plummets Amid Market Volatility and Regulatory Uncertainty
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Toncoin Sees Decline in Key Area: Any Impact on TON?
Toncoin has recently experienced a sharp decline in the number of swaps on its network decentralized exchanges. This significant drop is a cause for concern, as it may have a substantial impact on the altcoin’s price.
The data from CryptoQuant reveals that the average daily users on STON.fi and DeDust has plummeted to 13,300 and 5,250 respectively, which is a stark contrast to September’s numbers where we saw almost 200,000 daily users. This decline in interest can be attributed to a reduction in open positions, as traders are liquidating or reducing their exposure to decentralized exchanges.
Furthermore, the TON community has been plagued by uncertainty and mistrust since the arrest of its founder months ago. This legal turmoil has significantly impacted participation and trust in network-based platforms, leading to a decline in interest for Toncoin.
Additionally, unfavorable market conditions following the last FED rate cuts have resulted in lower trading volumes and reduced risk appetite, causing investors to shift their focus away from decentralized exchanges and towards staking.
This sharp decline in interest for swaps on Toncoin’s network decentralized exchanges is not only a significant issue but also presents an opportunity. Historically, periods of low interest and market inactivity have served as attractive entry points for investors seeking to diversify their portfolios.
However, the data suggests that this decline may be detrimental to TON’s value. The altcoin’s stock-to-flow ratio (SFR) has plummeted over the past three days, indicating an oversupply of TON in the market. This increased supply may lead to a downward pressure on prices due to the increased competition among buyers.
The sharp increase in Toncoin’s supply on exchanges also supports this assertion. The exchange flow balance has surged to 3,459, indicating that investors are sending more assets to exchanges.
Source: ambcrypto.com
