Toncoin Supply Grows to 5.1 Billion Amid Increased User Engagement

Toncoin (TON) has experienced significant changes in market dynamics, influenced by supply variations and increased user engagement within its ecosystem.

According to a recent analysis by CryptoQuant analyst Shiven Moodley, TON’s total supply has risen from approximately 5.01 billion tokens to around 5.1 billion tokens. This increase coincides with notable shifts in circulating supply, particularly a sharp decline in early 2024 due to lockups and staking activities.

Moodley indicates that these changes in circulating supply reflect TON's evolving liquidity and the growing trend of user commitment to staking and long-term holding.

Layer One And Layer Two Comparisons: TON’s Position And Future Outlook

Moodley emphasizes that activities within the TON ecosystem, especially on the Masterchain and Workchain, are crucial for driving user engagement. Notable applications and games hosted on the Workchain, such as Hamster Kombat, DOGS, and Catizen, have significantly increased trading activity.

Over the past six months, TON transactions have maintained a relatively consistent pace, with occasional spikes linked to game airdrops. This transaction activity positions TON as a robust layer-one blockchain network, showing consistency compared to its competitor, Arbitrum. Moodley states:

This growing user base would likely switch trader psychology towards holding over the medium to long term, reducing market liquidity in the TON ecosystem.

This potential reduction in market liquidity could result as more users choose to stake their tokens and engage in network activities for extended periods.

Toncoin Market Performance

Toncoin has benefited from the ongoing bull run, experiencing a price and market capitalization increase of over 15% in the past week. As a result, TON's market cap surpassed $13.8 billion, with its price currently at $5.41, reflecting a 1.4% rise in the last day.

Toncoin (TON) price chart on TradingView

Despite this increase, TON's daily volume has decreased from above $1 million on November 12 to its current valuation of $679 million.

Optimism remains in the crypto community regarding Toncoin's future. Analyst CryptoBullet recently predicted a price target between $12 and $15 for Toncoin.

Featured image from Adobe Stock Chart from TradingView