CryptoQuant’s Analyst JA Maartun highlighted a key observation in Toncoin’s (TON) price. In a Quicktake post, the analyst noted that TON is back in the low-risk area. This region is favorable for TON investors, indicating that returns might surpass assumed risk.
Toncoin is Less Volatile from a Year Ago
The analyst acknowledged that Toncoin has experienced fluctuations this year. Although Toncoin currently sits at $5.25, the price moved from $2 to $8 within the year.
“The Sharpe Ratio Risk Indicator for TON has entered a Low-Risk area for the first time in 12 months,” says Maarten.
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The Sharpe Ratio Risk indicator assesses an asset’s performance by comparing return to its risk. The analyst highlighted $5.25 as Toncoin’s current Low-Risk zone. Historical data indicates that Toncoin in this low-risk area usually drives a final leg of correction before finding a solid bottom. As a result, TON may continue its declining trend in the second half of October until buyers intervene to force a price reversal.
Maartun emphasized that TON looks healthy again, with the Sharpe Ratio cooling down. He also spotlighted the number of unique users rising above 100 million as a catalyst. However, he said he wouldn’t advise buying directly at this moment. Instead, he said investors could add TON to a watchlist or wait for an extremely low-risk signal before buying TON.
How Toncoin’s Price Evolved in the Past Year
Toncoin, the token of The Open Network, has seen an extraordinary surge in value and adoption in the past year. Toncoin’s price shows that the broader term maintained a positive outlook from early September 2023 to mid-November 2023.
TON almost doubled, increasing from $1.4 to $2.8. By December, the price entered a bearish territory, slipping below its key moving average of $2.04. TON recovered shortly, hovering around the $2.07 price range. The price direction at the time was focused on the coin’s ability to break out of this range in the short term.
Toncoin emerged as the top-performing crypto in the second quarter, standing out amidst market weakness. Between April and May, investors saw a price increase in Toncoin from $4.85 to $7.18.
TON is currently the tenth-largest cryptocurrency by market capitalization, at $13.5 billion. At press time, TON price was trading at $5.33, surging 3.16% in the past 24 hours. The trading volume also rose by 68%, suggesting increased investors’ willingness to accumulate the coin.
The Ecosystem Catalysts on Toncoin Growth
The surge in Toncoin’s price during Q2 hinges on its partnership with Telegram. This integration has made it easier for users to engage with TON services directly through their existing messaging app, boosting the blockchain’s visibility.
Additionally, the “Tap to Earn” mini-games introduced by TON have received widespread attention. Notably, Notcoin (NOT), an early adopter of this model, has outpaced some top memecoins in active wallet numbers.
The “Hamster Combat” game also attracted a large user base, surpassing popular titles like Candy Crush.
Furthermore, Toncoin partnered with Tether to enable smooth peer-to-peer payments using USDT across borders. This collaboration enhanced Toncoin’s utility, further increasing its adoption among users.
