- USDT’s availability on TON surged to a peak of $729 million within just 4 months
- TON achieved a remarkable 24.64% increase over the past week
In the last week, Toncoin [TON] has demonstrated a strong recovery in its price trends. As of the latest update, TON was valued at $5.79, marking a 4.4% increase within the past 24 hours. Over the week, this altcoin has also seen gains nearing 25%.
Such gains are the result of boosted adoption and favorable market conditions. Additionally, the increase in USDT on Toncoin, following its integration in April 2024, has also played a crucial role.
USDT supply on Toncoin reaches $729 million
As noted in Cryptoquant’s analysis, the total USDT supply on TON has skyrocketed to an unprecedented $729 million over the last four months. The integration of USDT into TON began on April 18, 2024, with the subsequent months witnessing substantial growth.
Source: Cryptoquant
This significant growth highlights the increasing influence of the stablecoin within the TON blockchain. The TON foundation’s integration efforts have undeniably attracted essential stablecoins necessary for network development. Furthermore, the rise in USDT supply on the blockchain has enabled numerous financial transactions while bolstering the overall acceptance of TON.
Per the earlier report, the growth of USDT within TON is also optimized for the quick adoption of peer-to-peer value transfers. Retail investors have increasingly engaged in transactions, with average transfers around $15-$100. The appeal for smaller investors primarily stems from the low median transfer fees on TON, averaging only 4 cents, making it financially viable.
Additionally, Cryptoquant’s analysis points out that USDT is increasingly utilized in the Toncoin blockchain, particularly in decentralized exchanges (DEXs). Hence, the DeFi landscape of USDT on Toncoin is being significantly shaped by activities within these decentralized exchanges.
What are the implications for Toncoin?
Stablecoins like USDT serve a crucial function in the cryptocurrency landscape, offering a reliable store of value and enabling smooth transactions.
As the world’s leading stablecoin with the widest usage, USDT’s integration was vital for Toncoin. The widespread use of USDT promotes Toncoin’s acceptance, particularly for users focusing on peer-to-peer USDT transactions.
What does the TON chart indicate?
An increase in USDT supply on TON suggests that Toncoin is gaining traction among users. This favorable market sentiment positions the altcoin for potential further gains.
This shifting market dynamic can be further exemplified by heightened investor interest.
Source: Santiment
Recently, Toncoin’s Open Interest across exchanges has consistently increased in recent months. Specifically, the last week saw Toncoin’s Open Interest in exchanges grow from $94 million to $104 million.
This trend indicates that investors are not only opening new positions but are also retaining existing ones. Such behavior is a bullish indicator, suggesting that investors expect further price increases.
Source: Coinglass
Furthermore, liquidations concerning TON have remained relatively minimal since the market downturn on August 5. In fact, the past week has seen liquidations of long positions decrease from $4 million to just $8.5k at the current time.
In summary, TON is experiencing favorable conditions in the market. This phenomenon is further reinforced by the increased supply and interactions of USDT on Toncoin. As a result, Toncoin appears to be well-positioned for additional gains, with the potential to challenge the $6.74 resistance level if current trends persist.
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