Toncoin [TON], the cryptocurrency associated with The Open Network blockchain, is gaining momentum among cryptocurrency enthusiasts, fueled by recent advancements.
The TON network plays a crucial role in facilitating the broader adoption of digital currencies, especially through its backing of stablecoins. Stablecoins like USDT play a vital role as they act as an entry point for individuals into the digital asset market.
Indeed, USDT on the TON blockchain has witnessed a rapid rise in popularity. Within the last month alone, USDT transactions on TON have surpassed 4.5 million, with transaction volumes exceeding $300 million.
The increasing prominence of USDT on the TON blockchain prompts a more profound examination of USDT’s market dominance and its impact on TON’s valuation.
At present, USDT’s dominance stands at 5%, with its peak noted during the market downturn in August, when most cryptocurrencies experienced substantial declines.
Currently, USDT’s dominance is on a downward trend, edging closer to a crucial support level. A breach below this support level might indicate a bullish turn for cryptocurrencies, including Toncoin.
Conversely, if USDT maintains its position, it could signal a continuation of the existing trend, potentially exerting downward pressure on the TON price.
TON’s Consolidation
Toncoin’s price movements have been consolidating within a specific range, following a descending trendline since the onset of the fourth quarter.
Despite this consolidation, there are signs that TON may have established a bottom around a FVG zone. The expanding utilization of stablecoins, particularly USDT, on the TON blockchain suggests a positive long-term outlook for TON.
The price correction subsequent to Toncoin’s bullish surge in early September is creating anticipation among traders.
With the increased popularity of USDT, more stablecoins may flow into TON, thereby driving up demand for the cryptocurrency.
Further scrutiny of the profitability of active addresses on the TON blockchain shows that roughly 80% of addresses are currently “at the money,” implying they are neither in profit nor at a loss.
Meanwhile, 4% of addresses are in profit, while 16% are at a loss. This suggests that most Toncoin holders acquired their tokens at the current price level of $5, making the current price an enticing entry point for potential investors.
However, traders need to exercise caution as a breach below this level could indicate a sustained decline before a probable rebound.
Toncoin’s deepening integration with stablecoins, notably USDT, supports a positive long-term outlook. Nonetheless, traders should remain alert for any short-term corrections that could impact the asset’s price.