Toncoin Bounce Clouds by Falling Decentralized Exchange Usage

• Toncoin has captured the attention of cryptocurrency enthusiasts with a sudden increase in its price and Open interest.
• This positive trend is clouded by a decline in network activity, particularly on decentralized exchanges, raising questions about the sustainability of this price bounce.

Toncoin has garnered attention from cryptocurrency enthusiasts with a significant rise in its price and Open Interest, but this positive trend is tempered by declining network activity on decentralized exchanges (DEXs). Toncoin has been making waves as it consolidates its price, rising by 3.6% to trade at $6.39 in the past week after an impressive 8.27% surge in November. 

As a Layer-1 blockchain deeply integrated with Telegram, Toncoin has the potential for significant impact, especially with increasing developer activity around decentralized applications (dApps) and on-chain services. However, the numbers tell a more complicated story.

A Mixed Outlook for Toncoin

One significant area of concern has been the decline in network activity. According to data shared by a CryptoQuant analyst, engagement on DEX platforms associated with Toncoin, such as PixelSwap, and Stone.FI and DeDust, have decreased sharply. The number of swaps and liquidity available on these DEXs are critical indicators of trading volume and user participation. 

The fluctuations in Toncoin’s price from a range of $7.20 to $5.20 have likely contributed to this decline in interest among traders and liquidity providers. This pullback in activity could potentially hinder any ongoing recovery efforts, as lower trading volumes typically lead to reduced liquidity and greater price susceptibility. Nonetheless, in a market that increasingly demands fast and secure payment solutions, Toncoin’s technology has the potential to shift investor interest positively over time.

On the other hand, Toncoin’s Open Interest has risen by 2.77%, reaching $214.07 million. Additionally, the Open Interest volume has experienced an increase of 7.10%, now valued at $169.73 million. Open Interest (OI) refers to the total number of derivative contracts, such as options or futures, that remain unsettled. An increase in OI signals greater confidence among traders in their ability to predict TON’s price direction, whether it be an upward or downward movement.

This growing confidence, despite the downturn in DEX activity, suggests that traders are actively engaging with Toncoin and are optimistic about its potential future price movements.

However, data provided by Glassnode suggests a more concerning scenario: the steady decline in the number of Toncoin’s active addresses. Active addresses fell dramatically from 3.8 million at the end of October to just 1 million by December 15th. Meanwhile, TON’s Relative Strength Index (RSI) of 51.48 indicates steady demand, with room for more gains.

Currently, TON is trading at $6.37, reflecting a 0.90% increase over the past 24 hours. Though it has decreased from its peak of $8.27 reached in 2024, Toncoin has experienced a remarkable 195.76% growth in the past year and currently boasts a market capitalization of $15.24 billion. Projections suggest an average price of $7.25 by the end of 2024. This varied performance highlights market volatility, leading analysts to investigate the factors affecting TON’s price fluctuations.

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