- The TON Network has passed the $1 billion mark in USDT growth
- TON’s price chart has remained subdued amid stagnant interest
Toncoins [TON] The growth of USDT stablecoins crossed the $1 billion mark after rising +670% in six months.
This has effectively made the Telegram-linked chain the 10th network by stablecoin dominance, just below Ethereum [ETH]-based Optimism [OP].
Source: CryptoQuant
Toncoin’s growth engines
Commenting on the growth, CryptoQuant analyst Burak Kesmeci linked the performance to the overall growth of stablecoins and Toncoin’s competitive fees. He said,
“I expect USDT supply to expand to $200 billion (from the current $120 billion) during the bull rally. This growth will likely drive demand for fast and cheap blockchain networks like TON, leading to continued growth in the amount of USDT on the TON network.”
Also, the average USDT transfer fee on the TON network fell from $0.061 to $0.035 – a reduction of approximately 42% over the same period.
Source: CryptoQuant
TON rose almost 80% on the price charts between May and June. This somewhat reflected the growth of stablecoins at the time.
However, its value fell further in August, partly due to the arrest of Telegram’s founder. Like most altcoins, TON was below its key long-term trendline resistance.
That said, TON’s flat OBV (on-balance volume) highlighted the altcoin’s weak market demand and challenges below the trendline in recent months.
Only a decisive move above $5 can amplify a shift in market structure, while it will likely amplify to the upside as well.
Source: TONUSDT, TradingView
Meanwhile, there was significant bullish market positioning on the Binance exchange at the time of writing.
About 53% of Binance’s top traders’ positions were net long on the altcoin, citing a moderate expectation of price recovery from recent lows.
Selling pressure for the altcoin also seemed muted. In September, selling pressure on the stock exchanges dropped enormously, as evidenced by the drop in supply on the stock exchanges. However, the statistic gradually rose in October – a sign of greater sales.
Read Toncoin [TON] Price forecast 2024-2025
Source: Santiment
The supply of whales has also increased over the same period. It suggested that Whales could take TONS at a discount from retailers unloading their stock. So the selling pressure on the stock market could be zero-sum.
But a strong recovery for TON could be derailed by subdued interest, as evidenced by low daily active addresses.
In short, it would take more than notable stablecoin growth to improve TON’s price chart performance.