Toncoin (TON) Price Prediction 2024: Will the Staking TVL Ratio Drop Further?

Toncoin [TON] has a strongly bullish outlook for this cycle. In fact, a recent AMBCrypto report outlined bullish targets for this run to be as high as $19.5.

Cryptocurrency price movements are often influenced by a multitude of factors, and Toncoin (TON) is no exception. A recent analysis by CryptoQuant has highlighted an interesting correlation between the varying staking ratio and price trends of TON.

According to the analysis, periods of rising prices for TON have coincided with a decrease in the amount of the token locked in staking. This observation could be a valuable insight for traders seeking to anticipate future price movements.

The analysis noted that during March 2024, the staking TVL ratio, represented by the purple line in the chart below, dropped significantly while the price trended higher. This occurred as investors sensed a positive shift in the altcoin market.

To capitalize on this, they withdrew their staked TON from exchanges to use on trading platforms. This movement, in turn, generated further demand for the token, ultimately boosting its price.

Chart displaying the correlation between price and staking ratio for TON. Source: CryptoQuant Insights

In periods of rising prices, locked tokens become less efficiently utilized, especially during high-volatility phases. This could explain the rapid decline in the staking TVL ratio last summer.

Moreover, the analysis observed that TON appeared to be pivoting away from a downtrend in price. As this continues, it could lead to another drop in the staking TVL ratio. This sustained decrease might, in turn, help support an uptrend in the coming weeks.

Highlighting another aspect, an analysis of the daily active addresses and network growth, both metrics have trended higher over the past two weeks, coinciding with TON’s price rally from $5 to $6.

The daily active addresses, represented by the blue line in the chart below, show a rising number of unique addresses engaged in transactions. This aligns with the increasing network growth, depicted by the green line.

Chart displaying the daily active addresses and network growth for TON. Source: Santiment

Together, these observations suggest high demand for Toncoin, which could be driving up its price. However, further analysis is always recommended to gain a comprehensive understanding of the factors influencing any cryptocurrency’s price movements.