TON Staking TVL Ratio Hits New Lows, Suggesting the TON Price Rally Is Only Getting Started

The Toncoin price recovery has been one of the few bright spots in the cryptocurrency market over the past week. The climate of the broad market has been sluggish in the festive period

The Toncoin price has been on a roll lately, and it appears that the altcoin is finally entering its recovery phase. After a brutal bear market that saw TON’s value plummet by over 90%, the recent price rally is a welcome sight for investors.

As Toncoin approaches the $6 mark, a recent on-chain phenomenon suggests that the price rally for TON might just be getting started.

Toncoin Staking TVL Ratio At A Low: What Happens Next?

In a recent Quicktake post on the CryptoQuant platform, an analyst pseudonymously known as Joaowedson discusses the dynamics between the staking TVL ratio and Toncoin price. According to the pseudonymous analyst, there is a correlation between the amount locked on TON and its price movements.

One trend observed is that investors tend to withdraw their assets to explore trading opportunities whenever there is a price increase. This phenomenon has also been observed in the TON ecosystem, with the TVL metric dropping in recent weeks.

Joaowedson highlights that the staking TVL ratio has reached new lows, coinciding with what appears to be a bottom for the Toncoin price. This ultimately suggests that the probability of an increase in the Toncoin price is higher.

While the concept of reduced interest in staking leading to a price increase may seem counterintuitive, it can be explained by the increase in liquidity available for trading.

As the Quicktake analyst puts it:

“When investors withdraw funds from staking, they usually move them to exchanges for a quick trade. This movement increases demand for the token and drives prices up.”

From a historical perspective, a similar situation occurred in March 2024 when the staking TVL ratio shrank drastically as the TON price surged to new highs.

“Interestingly, as interest in staking diminished, funds started flowing into centralized exchanges (CEXs) and decentralized exchanges (DEXs) like Ston.FI and Dedust, boosting the TVL in those categories,” Joaowedson adds.

With investors being more willing to make their assets available for trading, there is a higher likelihood of price increases due to growing demand. If this holds true, the Toncoin price could return to levels close to its recent highs.

Toncoin Price At The Moment

At the time of writing, the Toncoin price is around $5.78, showing a 0.5% decrease in the past 24 hours. However, over the past week, TON’s value has risen by over 6%, according to data from CoinGecko.