Toncoin (TON) Faces Decline: Impact of Weakening Market Demand

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Toncoin (TON) is facing challenges recently, especially with a significant decline in swap trading volume on decentralized exchanges (DEXs). In the past 24 hours, the price of TON has dropped by 3.06%, retreating from the $6 high before Christmas to $5.6, showing a clear sideways consolidation.

Decline in Swap Trading Volume

CryptoQuant analyst Joao Wedson pointed out that Toncoin's swap trading volume on decentralized exchanges (such as STON.fi and DeDust) has plummeted, leading to reduced market interest. The daily active users on STON.fi have dropped to 13,300, and DeDust to 5,250, a decrease of about 90% compared to the peak in September.

This decline is primarily influenced by the following factors:

Decrease in Open Positions: Many traders have liquidated or reduced their exposure to decentralized exchanges.

Legal Uncertainty: Since the founder's arrest, the TON community has faced legal issues, affecting trust in the platform.

Market Weakness: After the Federal Reserve's interest rate cuts, the overall crypto market has weakened, leading to decreased trading volume and reduced risk appetite among investors.

As swap trading volume decreases, investor interest is shifting towards staking, which may further affect TON's market performance.

Impact of Declining TON Demand

The decline in Toncoin's swap interest reflects a weakening of market buying pressure. According to Santiment data, TON's supply flow ratio (SFR) has dropped to zero in the past three days, indicating an oversupply, reduced scarcity, and downward pressure on prices. The supply of TON on exchanges has surged, with exchange flow balances reaching 3,459, further confirming the oversupply.

Future Trend Analysis

Currently, Toncoin is facing a decline in demand and market uncertainty, with investors generally opting to close positions to reduce risk. If this trend continues, TON may drop to $5.2. However, if the decline is seen as a buying opportunity, Toncoin could break out of the consolidation range and challenge $6.1 again.

Summary

Toncoin is experiencing the dilemma of declining swap trading volume on decentralized exchanges, leading to weakened demand and decreased market confidence. In the short term, prices may face downward pressure, but if investors actively enter the market, Toncoin still has the potential for a rebound.

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