- TON sees a 19% surge, but on-chain data highlights declining users, fees, and TVL.
- Resistance at $3.676 and reduced network growth may challenge the upward momentum.
Toncoin (TON) has continued its recovery from recent lows, posting steady gains over the past few days. Ton bounced from the support level of $2.454 and headed in the upper direction.
However, currently, Toncoin is facing solid resistance from the 50-EMA ($3.676) mark on the daily timeframe. If buyers succeed in breaking the $3.67 hurdle, then investors might witness a fresh rally in the upcoming days.
According to CoinMarketCap data, TON emerged as the market’s top performer in the last 24 hours, trading at $3.487 with an intraday surge of 19%. The daily trading volume has surged by 466.78%, suggesting buying momentum, and the volume-to-market ratio is 8.97%, indicating good liquidity. Moreover, the market cap is $8.62 billion, and the 24-hour trading volume is $778.14 million.
On-Chain Data Indicates Negative Sentiment
Despite the incredible surge, the on-chain data suggests potential headwinds that could challenge the altcoin’s uptrend. According to onchain analysis platform Tokenterminal the daily active users have decreased in recent months. In September 2024, the daily active users count hit a high of 1.4 million; from there, it dropped and is currently at 192.3k million.
Besides this, the network fees is also on the decline. In September 2024, the fees hit a high of $2.120 million; from there, it dropped and is currently at $99.371k. The declining fees indicate reduced network usage.
Source: Defillama
According to the on-chain analytical platform DefiLlama, TON has witnessed a decline in TVL in recent months. In July 2024, TON TVL was $776.6 million; from there, it began declining and is currently at $169.72 million. The declined TVL describes that the assets deposition is declined on the TON platform.
The on-chain analysis indicates the declined growth of the TON blockchain. If this trend continues, TON may face challenges in network growth.
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