Toncoin Price Approaches $6 Amid Dwindling Staking TVL Ratio
The Toncoin price recovery is notable in the current sluggish cryptocurrency market, where Bitcoin and Ethereum are underperforming. Toncoin is nearing the $6 mark, indicating its recovery phase. A pseudonymous analyst suggests that the recent on-chain activity may signal the beginning of a price rally for TON.
What Happened Last Time TON Staking TVL Ratio Was At A Low Level?
Analyst Joaowedson from CryptoQuant discussed the correlation between the staking Total Value Locked (TVL) ratio and Toncoin price. The trend indicates that investors tend to withdraw assets during price increases to seek trading opportunities, leading to a decrease in the TVL metric recently.
Joaowedson noted that the staking TVL ratio has reached new lows alongside a potential price bottom for Toncoin, suggesting a higher likelihood of price increases.
Reduced interest in staking may lead to price growth due to increased liquidity for trading. The analyst explained that when investors withdraw funds from staking, they typically transfer them to exchanges for quick trades, increasing token demand and driving prices higher.
Historically, a similar situation occurred in March 2024 when a significant shrink in the staking TVL ratio coincided with a surge in Toncoin price. As staking interest waned, funds migrated to centralized and decentralized exchanges, boosting their TVL.
With more assets available for trading, an increase in demand could drive Toncoin prices back toward recent highs.
Toncoin Price At A Glance
Currently, Toncoin is priced at approximately $5.78, reflecting a 0.5% decline over the past 24 hours, while it has increased by over 6% weekly, according to CoinGecko data.
