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NewsBTC 2024-12-29 05:00:28

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

The Toncoin price recovery has been one of the few bright spots in the cryptocurrency market over the past week. The climate of the broad market has been sluggish in the festive period, with the two largest assets Bitcoin and Ethereum struggling to make a mark. With the Toncoin price now approaching the $6 mark, it appears that the altcoin is now fully in its recovery phase. According to a pseudonymous analyst, a recent on-chain phenomenon suggests that the price rally for TON is only just beginning. What Happened Last Time TON Staking TVL Ratio Was At A Low Level? In a Quicktake post on the CryptoQuant platform, an analyst with the pseudonym Joaowedson discussed the dynamics between the staking TVL ratio and Toncoin price. According to the analyst, there is a correlation between the amount locked on TON and price movements. Related Reading: Historical Data Shows What To Expect From Ethereum Price In Q1 2025 – It’s Very Bullish The Quicktake analyst highlighted a trend whereby investors withdraw their assets in order to explore trading opportunities whenever there is a price increase. This phenomenon has also been observed in the TON ecosystem, with the TVL metric dropping in recent weeks. Joaowedson noted that the staking TVL ratio has reached new lows, coinciding with what appears to be a bottom for the price of Toncoin. Ultimately, this suggests that the odds of an increase in the Toncoin price are higher. While the idea of reduced interest in staking leading to price growth seems counterintuitive, it can be justified by the increase in liquidity available for trading. The Quicktake analyst explained: When investors withdraw funds from staking, they often transfer them to exchanges for quick trades. This movement increases demand for the token, driving prices higher. From a historical perspective, a similar situation occurred in March 2024 when the staking TVL ratio shrunk significantly as the TON price soared to new highs. “Interestingly, as interest in staking diminished, funds started migrating to centralized exchanges (CEX) and decentralized exchanges (DEX) like Ston.FI and Dedust, boosting the TVL in those categories,” Joaowedson added. With investors more willing to make their assets available for trading, there is a higher likelihood of price increases due to growing demand. If this holds true, the Toncoin price could return to around its recent highs. Toncoin Price At A Glance As of this writing, the Toncoin price stands at around $5.78, reflecting a 0.5% decline in the past 24 hours. According to data from CoinGecko, the value of TON is up by more than 6% on the weekly timeframe. Related Reading: Bitcoin Price Enters Correction Phase On Its Path To Explode Above $110,000 Featured image from Unsplash, chart from TradingView

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