Toncoin (TON) recently dropped to a weekly low of $6.85, marking a nearly 10% decrease over the past week.
This decline is mainly due to increased selling pressure in the market. In the last 24 hours, Toncoin's price fell by 3.19%, while trading volume increased by 6%.
This trend suggests growing caution among traders and raises the possibility of further price drops.
When a price decline is accompanied by a rise in trading volume, it usually indicates a bearish trend.
This means many investors are selling their holdings, which can drive the price down further. Analysts believe that if this trend continues, Toncoin could fall to $6.35 soon.
TON price and trading volume | Santiment
The recent price movements have led many futures traders to take short positions, reflected in the altcoin's predominantly negative funding rate since early July.
Currently, Toncoin's funding rate across various cryptocurrency exchanges is -0.023%. A negative funding rate means more traders are betting against the asset, adding to the downward price pressure.
Also read: TON's Ecosystem is Boiling Over With Phishing Traps
Developments on Telegram
In a notable development, developers of mini-applications on Telegram can now exchange Telegram Stars for Toncoin or discounted advertisements on the platform.
This feature was introduced about a month after Telegram launched Stars, which are virtual points users can buy with fiat currency to use within mini-apps.
According to a Telegram blog post, "Bot developers offering digital goods and services and creators monetizing their channels with paid posts can now use the Telegram Stars they earn to receive rewards in Toncoin or buy Telegram Ads.
Telegram has kept its commission on these transactions low, meaning users only need to pay taxes and payment system fees.
Additionally, when users transfer Stars into their Telegram Ad accounts, they get a 30% discount to help cover third-party payment fees.
Historical Context
At one point, Toncoin was trading at $8.05, experiencing a 5.06% increase in 24 hours, according to The Block Prices.
The Open Network is a blockchain and cryptocurrency platform specifically designed for Telegram and its automated bots, which serve various purposes from providing information to entertainment.
Toncoin has an interesting history. Originally created in 2018 by Telegram, the project aimed to compete with Ethereum and raised $1.7 billion in private funding.
However, Telegram faced legal challenges from the U.S. Securities and Exchange Commission (SEC), which claimed that Toncoin was a security. This led Telegram to abandon the project then.
Independent Development and Recognition
After Telegram stepped back, independent developers took over.
In 2021, a group called Newton acquired the ton.org domain and the Toncoin code repository, leading to the launch of the Toncoin blockchain and the $TON token.
Since then, various projects have emerged on the Ton blockchain, including popular meme coins like $TEPE and $FISH, which have gained traction in 2024.
While Toncoin now operates independently from Telegram, it still enjoys some recognition from Telegram's founder, Pavel Durov.
He publicly endorsed Toncoin in 2021, clarifying that Telegram has no financial or technological ties to the project anymore.
Future Outlook
In summary, as traders reassess their positions amid fluctuating prices and increased selling pressure, Toncoin's future remains uncertain.
With its recent developments on Telegram and continued interest in its blockchain, Toncoin is a cryptocurrency to watch closely.
Whether you are a seasoned trader or just curious about the crypto space, staying informed about Toncoin’s price movements and developments can help you navigate this dynamic market.