TON’s price action pattern has been driven by a surge in network activity.
The TON blockchain has hit yet another milestone, with the number of daily active addresses on the project’s Masterchain surging to a new all-time high of 946.
This marks a more than sevenfold increase since July 2021, according to new analysis from CryptoQuant, highlighting the network’s growing popularity and adoption.
A new milestone for TON
While 946 active addresses may seem simple at first, it is important to understand that the TON architecture is designed with multiple “worker chains” that process large amounts of data, with the Masterchain primarily responsible for message routing and transaction coordination.
The increase in active addresses has several implications. First, this growth reflects increased network activity—more users are engaging in transactions and leveraging the platform’s features, and this increased engagement, in turn, leads to increased transaction volume.
Additionally, the increase in active addresses indicates that the network ecosystem is expanding, with an increase in the number of decentralized applications (dApps) and workchains contributing to the functionality of the blockchain.
From an economic perspective, a surge in network usage could drive up demand for TON tokens as increased activity and an expanding ecosystem enhance the asset’s utility and value within the blockchain.
While the TON blockchain may be in a bubble due to its low number of daily active users, broader market indicators challenge this view, pointing to the network’s steady growth and long-term potential.
Toncoin has shown strong potential to maintain support as a top currency. The TON/USDT weekly chart shows a long-tailed reversal candle, indicating bullish pressure and supported by the growth in trading volume in recent weeks.
Moreover, the Bollinger Bands are tightening, suggesting a possible squeeze, but the best bet is a breakout to the upside.
Looking at the daily timeframe, Toncoin is close to breaking above the 100 simple moving average, which is creating some resistance. However, it is likely that TON will soon break above this level and remain above it.
With a 50-60% bullish wave expected in the near future, $10 per TON is a realistic target for traders and investors, indicating strong upward momentum ahead.
Altcoin are about to explode
The Altcoin is poised for a sharp breakout after a pullback above the range. The pullback formed a bull flag pattern, a formation that is often associated with an impending bull run.
The market is gearing up for the Altcoin season, with new memecoins like DOGS, created by Telegram CEO Pavel Durov, already being used to generate liquidity in TON. The Altcoin market is set to see a strong rally.
Global and TON liquidity surges
Global liquidity is about to explode, and Bitcoin [BTC] and Altcoin will rise sharply. According to data from the Bitcoin Strategy Platform, liquidity has dropped to more than $80 trillion.
Combined with USDT minting, this could lead to significant gains for TON and other crypto assets. Expect a significant price increase in late Q3 or early Q4 2024.
At press time, TON has a market cap of $16.82 billion and a fully diluted market cap of $34 billion. The total number of TON tokens is 5.1 billion, of which the circulating supply is 2.53 billion. The trading volume in the past 24 hours is $227 million, and the volume-to-market cap ratio is 1.4%, indicating sufficient liquidity.
In simple terms
The current increase in TON Masterchain activity paints an optimistic weekly outlook, reflecting increased network activity, expansion of dApps and work chains, and potentially higher demand for Toncoin [TON]. Broad market indicators in the short term challenge the view that low daily active users are a bubble, indicating steady progress for the network, and expecting great short-term upside potential. In the long term, I believe that TON is expected to continue its upward momentum and grow further as the surge in global liquidity and transaction volume indicates its long-term potential.
