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Key Takeaways:
- The TON Foundation’s $400M treasury plan could be a game-changer for Toncoin.
- TON must hold above $3 to avoid a deeper slide toward $2.60.
- On-chain and DeFi activity show both promise and pressure, making the next moves crucial for price action.
Toncoin (TON) has seen only modest gains over the past 24 hours, with a 1.77% increase that comes amid broader price stagnation. However, recent developments suggest a potential shift in momentum, especially with institutional interest heating up.
TON Foundation Teams Up with Kingsway Capital
The TON Foundation’s latest collaboration with Kingsway Capital is a major development. Together, they are launching a $400 million Toncoin treasury company. This move aims to provide strategic financial backing for ecosystem growth, possibly injecting confidence into the altcoin’s sluggish price trajectory.
Despite trading well below its one-year high of $6.80, TON could see renewed buying interest if the treasury boosts project development and market sentiment.
Technical Analysis: Price at a Pivotal Level
Toncoin has been oscillating between the $2.60 and $3.70 range for two months. A significant bounce from the lower bound in June pushed TON up to $3.60, though it was unable to hold. At press time, the token has once again fallen below the critical $3.00 mark, with the potential for either a bounce or deeper correction.
Should TON hold the $3 level and build bullish momentum, a 21% rally to the $3.70 resistance appears plausible. If not, a drop back into the consolidation range could see it revisit the $2.60 support level.
On-Chain Activity Offers Mixed Signals
Despite some encouraging long-term user growth, key on-chain indicators show declining activity. Daily wallet activations fell by almost 50% over 10 days, from 35,392 to just 19,366. However, overall wallet numbers and NFT + DNS trading volumes remain strong, with figures reaching 23.37M and 7M TON respectively.
This divergence suggests cautious optimism, especially after the recent U.S. launch of the TON wallet—potentially reigniting user activity.
TON’s DeFi landscape presents a mixed picture. The current Total Value Locked (TVL) has shrunk significantly from $1.1 billion a year ago to $408 million. Yet, staked TON remains high at 791 million, and the stablecoin market cap has risen 7.85% this week.
While DEX volume averaged $9 million daily, fee data highlights TONCO as the most used protocol, outpacing rivals like STON.fi and DeDust.
Toncoin’s future hinges on several factors—the success of the $400M treasury initiative, its ability to reclaim technical support levels, and renewed ecosystem activity. While a rally remains possible, mixed metrics suggest cautious optimism.
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
Also Read: Crypto Daily Recap: LetsBonk Surges, Toncoin Dips, $8.6B Bitcoin Transfer Sparks Curiosity
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
