The Toncoin (TON) blockchain has experienced a noticeable drop in Total Value Locked (TVL) over recent months. However, amid this downturn, staking participation has surged, signaling a shift in investor sentiment towards stability and secure yields.
Understanding the Decline
According to AMBCrypto’s analysis, TON’s TVL has significantly decreased from mid-2024 to early 2025. This decline suggests a possible slowdown in network activity or a shift away from decentralized finance (DeFi) protocols. Despite this, Liquid Staking has remained a crucial component of TON’s TVL, demonstrating that while investors may be pulling out of riskier DeFi ventures, they continue to engage in staking.
The growing dominance of staking within TVL suggests a move toward reduced volatility. If this trend continues, TON’s price could stabilize as more assets are allocated to lower-risk staking mechanisms rather than highly volatile DeFi platforms.
A Shift Toward Secure Yield
Further analysis reveals that the Staking TVL Ratio has climbed to new highs, despite the broader TVL decline. This ratio, which measures the portion of TVL dedicated to staking, indicates that investors are prioritizing steady yield generation over speculative DeFi opportunities.
The preference for staking could offer TON increased price stability, as tokens locked in staking pools are less likely to be rapidly sold. This shift could also lead to potential price appreciation over time as staking rewards accumulate and reinforce long-term holding behavior.
Speculation vs. Stability
An analysis of Netflows highlights a sharp spike in aggregated exchange inflows around mid-February 2025, coinciding with a peak in TON’s price. Following this surge, inflows stabilized, suggesting that the initial increase was driven by speculation or a specific event.
With market sentiment normalizing, TON may enter a consolidation phase, potentially paving the way for future price appreciation as investor confidence builds.
Another positive indicator for TON is the steady rise in active addresses, particularly those holding balances. From late 2024 into 2025, this trend suggests increasing user engagement with the staking ecosystem.
A growing number of active addresses is typically a bullish sign, reflecting a healthier network with sustained demand. If this trajectory continues, TON’s price could benefit from increased adoption and network expansion.
Despite the recent decline in TVL, TON’s increasing staking participation and expanding user base indicate a shift toward stability. These trends suggest that the network is evolving into a more staking-driven ecosystem, which could support long-term price growth and investor confidence.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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