Telegram-backed blockchain, TON, the Open Network, and decentralized computer network consisting of a layer-1 blockchain with various components has been relatively growing since its launch in August 2021.
Evaluating Liquidity Dynamics on the $TON Network“The disparity between market capitalization and circulating supply may suggest that a portion of the tokens are either locked or held long-term, impacting liquidity.” – By @ShivenMoodley Read more https://t.co/Jc0SvsXMDj pic.twitter.com/7Yfc08NFyg
— CryptoQuant.com (@cryptoquant_com) September 23, 2024
Known for its scalability and high throughput, TON has been established as an essential player in the crypto sphere. Helping this rise is the association with Telegram, which has significantly boosted the number of users and practical applications of the blockchain.
As depicted on the graph from CryptoQuant, the coin’s market cap reached as high as about $40 billion and then was subjected to fluctuations that characterized the crypto market’s volatile nature.
Using arguments from financial analyst Shiven Moodley, circulation supply and Market capitalization seem to have an intricate relationship with the liquidity of assets. Moodley reasons that a percentage of TON tokens are either locked or used for long-term investments, meaning they hinder the liquidity that is vital to attaining daily trading volumes. This disequilibrium between market capitalization and circulating coins proves that locked-up tokens are large in number, but circulating coins are essential to market valuation.
Econometric Analysis and Market Behavior
Additional econometric analysis reveals the average market capitalization-to-price ratio, which is used to measure market behavior. A positive linear relationship in the graphic implies changes in market cap and circulating supply, which suggest that market movements are driven more by utility and adoption rather than sheer speculation. This alignment is a positive signal that speaks to the market maturity, where valuation is beginning to move closer to the underlying economic operations and not the speculative trades.
The difference between the market capitalization and the actual token price determines the varying phases of actual over or undervaluation depending on other market factors and internal TON factors. These econometric considerations should be useful for investors and stakeholders to make better informed decisions on investment in the token, other than the noise that often characterizes market price movements.
The Future Outlook for TON
Ahead of it, integration with Telegram is expected to remain instrumental in its growth. This partnership not only boosts the functioning and the number of users in the network but also proves the versatility and stability of the blockchain, which is capable of supporting scalable applications. In terms of the blockchain environment and growth, Moodley’s econometric factors will be invaluable for investors and users when making decisions and predicting future trends.
TON’s journey reflects a blockchain that is closer to traditional economic indexes and far from speculations. Speaking of the upcoming changes in the market, TON’s strategic initiatives and solid foundation indicate that TON has all the potential to stay on its growth curve and become an interesting part of the future digital economy.
