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Toncoin Sees Decline in Key Area: Any Impact on TON?
A recent analysis by CryptoQuant analyst Joao Wedson has revealed a sharp decline in the number of swaps on the Toncoin network decentralized exchanges. This development has sparked concerns about the potential impact this may have on the value of Toncoin (TON).
According to Wedson’s findings, the average daily users on STON.fi and DeDust have significantly dropped from their September levels, which stood at almost 200,000. Currently, these platforms are witnessing a mere 13,300 and 5,250 daily active users respectively. This drastic decline has led many experts in the crypto space to re-evaluate the market performance of TON.
As per the data shared by Wedson, the reduction in open positions on decentralized exchanges is one of the main reasons behind this decline. Many traders are opting for liquidation or reducing their exposure to such platforms amid uncertainty and volatility in the crypto market. Additionally, the legal issues surrounding Toncoin’s founder have led to a loss of trust within the community, further exacerbating the situation.
The overall crypto market has also been experiencing unfavorable conditions since the last FED rate cuts. The reduced trading volume and risk appetite are factors that may have contributed to this decline in interest for Toncoin’s swaps.
While the current downturn may seem like an ominous sign for TON investors, history suggests that periods of low interest and market inactivity can provide attractive entry points for investors. This perspective is echoed by Santiment, which reveals that Toncoin’s stock-to-flow ratio has dropped significantly over the past three days to zero. In such situations, oversupply and reduced scarcity are common occurrences.
Furthermore, TON’s supply on exchanges has seen a surge of 3,459. This suggests that investors are actively sending more assets to exchanges. Therefore, it is crucial for traders to re-evaluate their positions amid these unfavorable conditions.
It is essential to acknowledge that the market uncertainty surrounding Toncoin and its founder may be causing investors to take cautious approaches by closing their positions and reducing risks. In this scenario, TON’s value could potentially drop further to $5.2. However, if investors perceive the current downturn as a buying opportunity, it is plausible for TON to break out of its consolidation range and reach an all-time high of $6.1.
In conclusion, Toncoin’s decline in key areas has led many experts to reassess the potential impact on TON’s value. While uncertainty prevails, history suggests that market downturns can be lucrative opportunities for savvy investors.
Source: ambcrypto.com
