Throughout the recent period, the cryptocurrency Toncoin [TON] has exhibited a notable rebound in its market performance. Presently, TON is valued at $5.79, having witnessed a 4.4% increase in the past 24 hours. Over the span of the last week, this altcoin has seen a substantial surge of close to 25%.
These positive developments can be attributed to increased adoption and growing favorability within the market. Another significant contributing factor has been the rise in USDT supply on Toncoin following its integration in April 2024.
USDT on Toncoin Reaches $729 Million
According to an analysis conducted by Cryptoquant, the total supply of USDT on TON has skyrocketed to a record-breaking $729 million in just four months. The integration of USDT into TON commenced on 18th April 2024, heralding a period of pronounced growth ever since.
This surge underscores the escalating dominance of the stablecoin within the TON blockchain. Undoubtedly, the integration carried out by the TON foundation has played a crucial role in drawing in the stablecoins necessary for network expansion. Moreover, the expanding USDT supply within the blockchain has facilitated various financial transactions, thereby bolstering the broader adoption of TON.
As per the aforementioned analysis, the growth of USDT within TON aligns well with the swift adoption of peer-to-peer value transfers. This has led to heightened usage by retail investors, with median transfers ranging from $15 to $100. The preference of small investors for TON is primarily fueled by the low median transfer fees, standing at 4 cents, making them economically viable.
Furthermore, the report from Cryptoquant highlights the notable presence of USDT within the Toncoin blockchain, particularly through its extensive utilization in decentralized exchanges (DEXs). Hence, the DeFi ecosystem of USDT on Toncoin is predominantly shaped by interactions stemming from decentralized exchanges.
Implications for Toncoin
Stablecoins like USDT play a crucial role in the cryptocurrency realm by providing a stable store of value and facilitating seamless transactions.
Given that USDT is the largest and most widely used stablecoin globally, its integration marked a critically significant step for Toncoin. The utilization of USDT contributes significantly to Toncoin’s adoption, especially for users focused on peer-to-peer USDT transactions.
Analyzing TON’s Performance
The increase in USDT supply on TON signifies a growing acceptance of Toncoin among users, setting the stage for further market gains.
This trend is further evidenced by the increasing investor interest in TON.
For instance, the Open Interest per exchange for Toncoin has demonstrated a consistent upsurge in recent months. Over the past week alone, Toncoin’s Open Interest on exchanges has risen from $94 million to $104 million.
This uptick indicates that investors continue to open new positions while retaining existing ones, reflecting a bullish sentiment with investors anticipating further price appreciation.
Moreover, liquidations for TON have remained relatively low post the market crash on 5th August. For example, long positions liquidations over the past seven days have dwindled from $4 million to $8.5k at the time of writing.
In essence, TON is experiencing favorable market conditions. This trend is further supported by the increased supply and engagement of USDT on Toncoin, positioning Toncoin well for future growth. Should the current conditions persist, the altcoin could potentially challenge the $6.74 resistance level.