Toncoin price on the downward trend, drops key support level
Toncoin price has continued to decline, falling below a crucial support level as the overall cryptocurrency market experiences a drop. TON saw a 15% decrease on Sep. 4, making it the worst-performing cryptocurrency in the top-ten list. The price plummeted to $4.60, marking a decrease of more than 44% from its 2023 peak. Its market cap has also fallen from $23 billion to $11 billion.
This decline in TON’s price coincided with a decrease in funds locked in its decentralized finance (DeFi) applications. The total value locked (TVL) dropped from a high of $770 million to $318 million, hitting its lowest point since June. In TON terms, TVL has gone down from 115 million to 66.1 million.
Furthermore, the TON Blockchain has lost its spot as a top 20 chain in the DeFi industry, being surpassed by networks like Linea, Mantle, Aptos, and Cronos. Its performance in the past month has been weaker compared to other chains, with its total value locked decreasing by 33% while chains like Solana (SOL), Base, Avalanche (AVAX), and Sui (SUI) have seen increases of over 26%.
The trading volume on TON’s decentralized exchanges has also seen a sharp decrease, dropping by 62% in the last week to $144 million. Contrastingly, Ethereum (ETH) and Solana experienced trading volume reductions of less than 30%.
The recent decline in TON’s performance could possibly be attributed to the arrest of Telegram CEO Pavel Durov in France. He has been accused of complicity in serious crimes, such as aiding organized crime and non-compliance with law enforcement orders. If found guilty of all charges, Durov could potentially face over ten years in prison.
Looking forward, the upcoming Tapswap and Hamster Kombat airdrops this month could be pivotal for Toncoin’s price movement. The popular tap-to-earn mini-app, Hamster, will launch its airdrop on Sep. 26. While TapSwap’s airdrop date has not been confirmed yet, developers have committed to releasing it by the end of the third quarter. These platforms have massive user bases, with Hamster having over 300 million users and TapSwap with 65 million users, potentially driving more activity on TON.
On-chain data reveals that the number of active wallets in TON has reached a record high of 14.6 million, while the total TON supply has surged to 5.1 billion. From a technical analysis standpoint, signs point towards a continued decline in Toncoin’s price. The price breached a key support level at $4.76, forming the neckline of a head and shoulders pattern—a bearish signal. Additionally, the 200-day and 50-day Exponential Moving Averages are on track to form a death cross pattern, indicating a potential downtrend with the next critical point for TON being $4.00.
