Toncoin Price Recovery Continues — Is The Dwindling Staking TVL Ratio Bullish?

by

As a seasoned analyst with over two decades of experience in the financial markets, I have seen countless bull and bear cycles unfold. The recent surge in Toncoin price has piqued my interest, especially given the broader market’s sluggish performance.

The correlation between Toncoin’s staking TVL ratio and its price movements caught my attention. Historically, similar trends have been observed, such as the one in March 2024 when the staking TVL ratio shrunk significantly while the TON price soared to new highs. It seems that the current low levels of staking interest could be a precursor to another price rally.

However, it’s important to remember that the markets can sometimes surprise us with their unpredictability, much like a well-timed joke at a formal gathering. So while I am optimistic about Toncoin’s future, I always advise my readers to approach any investment decision with caution and do their due diligence.

On a lighter note, one might say that the markets are like a rollercoaster – full of ups and downs, twists and turns, and the occasional unexpected loop-the-loop! But as long as you’re strapped in tight and ready for the ride, it can be an exhilarating experience.

Over the past week, the revival in Toncoin’s price has been one of the rare positive highlights in the overall cryptocurrency sector. In contrast, the broader market atmosphere has been subdued during the holiday season, with Bitcoin and Ethereum finding it challenging to establish significant gains.

As the Toncoin price nears $6, it seems clear that the altcoin has transitioned into its recovery stage. Based on observations from an anonymous expert, a fresh on-chain event hints that the surge in Ton’s price could be merely getting started.

What Happened Last Time TON Staking TVL Ratio Was At A Low Level?

On the CryptoQuant platform, a user known as Joaowedson shared insights about the relationship between Toncoin’s price fluctuations and the staked Total Value Locked (TVL) ratio in a recent post. The analyst suggested that there seems to be a connection between the amount of Toncoin being locked and the resulting changes in its price.

As a researcher, I’ve noticed an intriguing pattern: when asset prices rise, some investors tend to withdraw their funds to pursue trading possibilities. This behavior has been observed not only in the broader market but also within the TON ecosystem, as evidenced by the decrease in TVL (Total Value Locked) over the past few weeks.

According to Joaowedson’s observations, the TVL-to-staking ratio has hit record lows, which seems to align with what looks like the bottom for Toncoin’s price. In essence, this implies that there is a greater likelihood of an upward trend in Toncoin’s price.

Although it might seem unusual that less interest in staking could result in price increases, this can be explained by the enhanced liquidity made accessible for trading.

The Quicktake analyst explained:

When individuals decide to cash out their staked tokens, they frequently move these funds to trading platforms for swift transactions. This action tends to boost the token’s demand, causing its price to escalate.

Looking back historically, a comparable scenario unfolded in March 2024 when the TVL to TON staking ratio noticeably decreased as the price of TON reached unprecedented peaks. Remarkably, as the appeal of staking waned, funds began shifting towards centralized exchanges (CEX) and decentralized exchanges (DEX), such as Ston.FI and Dedust, causing a spike in TVL within those sectors, according to Joaowedson’s statement.

As someone who has been actively trading and investing in various cryptocurrencies for several years now, I have noticed a significant increase in investor willingness to put their assets up for trading lately. This trend, if it continues, could lead to an upward momentum in prices due to growing demand. If this is the case, I believe that Toncoin’s price might rise and potentially reach its recent highs again. I have witnessed similar market dynamics in other cryptocurrencies and am optimistic about Toncoin’s prospects based on these observations. However, it is always essential to do thorough research and consider all factors before making investment decisions.

Toncoin Price At A Glance

Currently, the price of Toncoin is approximately $5.78, representing a minor decrease of 0.5% over the last day. However, the seven-day trend shows an increase of over 6% as reported by CoinGecko.

Read More

2024-12-29 08:13