Toncoin [TON] growth in USDT stablecoin has surpassed the $1 billion mark after increasing +670% in the past six months.
This made the Telegram-affiliated chain the 10th network based on stablecoin dominance, just below Ethereum [ETH]-based Optimism [OP].
Source: CryptoQuant
Toncoin Growth Momentum
Reacting to this growth, CryptoQuant analyst Burak Kesmeci linked the performance to the overall growth of the stablecoin and Toncoin's competitive fees.
He said:
“I expect the USDT supply to expand to $200 billion (from the current $120 billion) during the strong bull run.
This growth is likely to stimulate demand for fast and low-cost blockchain networks like TON, leading to continued growth in the amount of USDT on the TON network.”
Additionally, the average transfer fee of USDT on the TON network has dropped from $0.061 to $0.035 – a decrease of about 42% over the same period.
Source: CryptoQuant
TON increased by nearly 80% on the price chart from May to June. This growth partly reflects the development of stablecoins at that time.
However, its value fell further in August, partly due to the arrest of Telegram's founder. Like most altcoins, TON is below a key long-term trendline resistance.
That said, TON’s flat on-balance volume (OBV) underscores weak spot market demand and the altcoin’s resistance below resistance over the past few months.
Only a decisive move above $5 could solidify the change in market structure, creating further upside momentum.
Source: TONUSDT, TradingView
Meanwhile, there is significant bullish market positioning on Binance at the moment.
About 53% of top traders' positions on Binance are net long on altcoins, suggesting a moderate expectation of a price recovery from recent lows.
Selling pressure for altcoins also appears to be moderate. In September, exchange selling pressure dropped significantly, as shown by the decrease in supply on exchanges.
However, the index has been rising steadily in October – a sign of greater selling.
See more: Price analysis 10/18: BTC, ETH, BNB, SOL, XRP, SHIB attractive
Source: Santiment
The supply held by whales has also increased over the same period. This suggests that whales may be accumulating cheap TON from retail investors who are selling. Therefore, the selling pressure on exchanges may be a zero-sum game.
But a strong recovery for TON could be delayed by muted interest, as shown by low daily active address figures.
In short, it will take more than steady growth to explode TON's price chart.
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