Toncoin (TON) has significantly dropped below the $5.20 level in the last seven days. TON has tested the crucial support floor of $5 on several occasions. The price dip is attributed to the recent selling pressure in the market that also impacted Toncoin.
TON Stablecoin Outlook
Despite this plunge, users on Toncoin remain optimistic about a possible rebound soon. Meanwhile, DeFiLlama data shows that TON’s stablecoin supply has spiked in recent months. Between April 2024 and now, the supply soared by 13 times. While many feared the arrest of Pavel Durov, Telegram founder, would cause a slump, the stablecoin has grown by 25%.
The French authorities accused the 39-year-old billionaire of failing to prevent crime on his platform. Although out on bail, Durov cannot leave France as his conditions of release stipulate.
– Advertisement –
TON’s stablecoin total market capitalization is over $767 million, indicating a healthy ecosystem despite price fluctuations. It also signals investors’ confidence, notwithstanding the Pavel Durov legal hurdles.
Although TON’s price remains low, the community is bullish on the project. A clear indication lies in the supply volume, which has jumped by 17.76% to $194.63 million. Experts credit the wide acceptance of Telegram Mini Apps (TMA) with the continued growth in the TON ecosystem.
TON’s Community Support and Stablecoin Liquidity Boost
The Telegram community has largely driven TON’s stablecoin liquidity. With a growing user base of over 900 million people, the platform has continued to attract new subscribers. Notably, the platform’s play-to-earn games like Notcoin, Hamster Kombat, and airdrop offers have attracted many.
Catizen has also gained popularity as a Web3 gaming project on Telegram. The game attracted over 34 million players who participated in earning in-game currency, vKITTY.
Catizen officially launched on September 20 and commenced trading on some exchanges. Binance, the world’s largest crypto exchange, became the first to trade the kitty-themed Telegram game.
Meanwhile, as per the announcement from Durov, the TON community eagerly anticipates the rollout of new features.
According to the Telegram founder, the functionalities would allow participants to gift their friends and introduce Toncoin-based NFTs before the end of 2024. The feature will also enable users to trade these tokenized gifts outside the platform. The blockchain will keep track of the ownership of the items.
Is $6 Rebound Possible?
Despite the huge support from the community and stablecoin supply, TON’s price has remained bearish.
The asset could not shake off the negative sentiments following the recent selloffs, which triggered a massive dip. TON’s price crashed from about $6 to $5.06, signaling sellers’ domination in the market.
With a recorded boost in stablecoin supply on the TON network, market watchers anticipate a rally. Additionally, the TON’s Total Value Locked (TVL) indicates the possibility of an early rebound for Toncoin. This resurgence will happen quicker if the broader crypto market rallies.
While TON’s price remains far from the June levels of $8.18, members of the community have kept their hopes up. They anticipate a rally to break the current resistance and drive prices up to $6.
According to current market data, TON’s price was down 2.19% to $5.04 at the time of writing.
