Following a recent dip to $5.53 on December 10th, Toncoin (TON) has seen a notable uptick in its value. After experiencing a downward trend in the past weeks, the cryptocurrency has surged by 3.6% in the last 24 hours, currently trading at $6.39.
Despite this recent rise, TON has still shown a 3.3% decline over the past week and nearly 3.9% in the last fourteen days. This fluctuating performance has attracted the attention of analysts, who are now delving into the factors influencing TON’s price fluctuations.
An analyst from CryptoQuant recently shed light on TON’s network activity, pointing out a decrease in decentralized exchange (DEX) participation. The analyst highlighted a reduction in the number of swaps and liquidity pools on TON’s DEX platforms, such as Stone.FI and DeDust.
Historically, heightened activity on these DEXs has been directly linked to TON’s price spikes, while reduced engagement has coincided with price corrections. This pattern suggests that TON’s price volatility, particularly fluctuations between $7.20 and $5.20, has led to a decreased interest in decentralized trading and liquidity provision.
Contradictory Signals Emerge
Despite the noted decline in DEX activity, there is a positive momentum in TON’s Open Interest, a metric that measures the total value of outstanding derivative contracts.
Data from Coinglass indicates a 2.77% increase in TON’s Open Interest, now standing at $214.07 million. Furthermore, the volume of Open Interest has surged by 7.10%, reaching $169.73 million.
These statistics suggest a renewed interest from traders and investors in TON’s derivatives market, giving a potentially more optimistic outlook for the cryptocurrency’s future.
However, according to data from Glassnode, the situation appears less promising. TON’s active addresses, indicating the number of unique users interacting with the network, have been consistently declining.
The active addresses have plummeted from 3.8 million in late October to only 1 million as of December 15th, reflecting a dwindling user engagement that could pose challenges in maintaining long-term price momentum.
This significant decrease may signal a reduction in retail involvement or overall interest in the TON ecosystem, possibly constraining network expansion and adoption.