Toncoin (TON) has experienced significant shifts in its market dynamics recently, driven by fluctuations in its supply and increased user engagement within its ecosystem. According to an analysis by CryptoQuant analyst Shiven Moodley, TON’s total supply has seen steady growth, rising from approximately 5.01 billion tokens to around 5.1 billion tokens.
This increase in total supply has been accompanied by notable changes in the circulating supply, especially a sharp decline in early 2024. This decline is attributed to lockups and staking activities within the TON network. These changes in circulating supply, according to Moodley, reflect an evolution in TON’s market liquidity and a growing trend of users committing to staking and long-term holding.
Activities within the TON ecosystem, particularly on the Masterchain and Workchain, have been pivotal in driving user engagement. Applications and games hosted on the Workchain, such as Hamster Kombat, DOGS, and Catizen, have significantly boosted trading activity. Moodley’s analysis also highlighted TON’s comparative positioning among other prominent altcoins and blockchain ecosystems. Over the past six months, TON transactions have maintained a relatively consistent pace, with occasional spikes linked to airdrops for games on the network. This steady transaction activity positions TON as a strong layer-one blockchain network with notable consistency compared to its closest competitor, Arbitrum.
Moodley suggested that this growing user base could shift trader psychology towards medium to long-term holding, thereby reducing market liquidity within the TON ecosystem. This potential reduction in market liquidity may occur as more users opt to stake their tokens and engage in network activities over extended periods.
Toncoin has benefited from the ongoing bull run in the market thus far. In the past week, the altcoin has experienced a significant increase in price and market capitalization, jumping by more than 15%. This surge has elevated TON’s market cap to above $13.8 billion and its price to $5.41, marking a 1.4% rise in the past day.
Interestingly, despite this price increase, TON’s daily volume has shown a cooling trend, moving from a valuation above $1 million on November 12 to a current valuation of $679 million. Nevertheless, sentiment within the crypto community remains optimistic about the altcoin’s future. Renowned crypto analyst CryptoBullet recently predicted a target range of $12 to $15 for Toncoin, highlighting a test of prior resistance for support and suggesting that the current correction may be nearing its end, paving the way for a potential upward movement.
 sees market growth with increased user staking, boosting its price and market cap. Steady transactions and bullish sentiment signal strong future prospects.){kind=link}