TON price eyes early rebound as stablecoin supply on Toncoin blockchain jumps 25%

The cryptocurrency market remains shaky after Wednesday’s plunge threatened a Bitcoin move below $60,000.

Telegram-based Toncoin (TON) joined the downside, approaching its crucial support floor at $5.

Meanwhile, ecosystem stats suggest renewed growth for the Toncoin blockchain, which could be crucial in absorbing the prevailing selling momentum for solid TON price recovery.

Artemis data shows TON’s stablecoin supply soared remarkably in the past few months, growing 13x since April 2024 and 25% since French regulators arrested Telegram founder Pavel Durov.

The metric stands well above $760 million, indicating a healthy ecosystem.

Source: Artemis

TON price eyes massive comeback

Top Telegram cryptocurrencies, including Toncoin, endured bearish tendencies following Durov’s legal drama.

Nevertheless, the TON blockchain maintained resilience amid continued growth.

Data shows that the stablecoin supply on the platform has jumped 25% since French authorities arrested the Telegram founder, extending the total surge by 13x since April.

That reflects renewed optimism and growth despite the legal challenges.

Stablecoin supply remains crucial in bolstering network utility and liquidity. That could boost TON’s demand as a staking and transaction fee token, translating to price surges.

Investors confident in TON’s rebound

DefiLlama data shows a significant surge in Toncoin’s total value locked.

The metric jumped 28% to $408 million from $317.2 million within the previous month. That shows more investors locking their TON tokens in the blockchain and interacting with DeFi protocols.

Nevertheless, Messari analyst Nick Garcia warned that Toncoin’s current scenario mimics FTX, which witnessed massive collapse due to legal woes.

Furthermore, Telegram’s continued expansion likely kept TON afloat in the past few sessions.

The surged stablecoin supply came from Telegram’s community of around 900 million users, with trending P2E games like Hamster Kombat driving significant trading volumes.

Moreover, Pavel Durov announced more upcoming features on 5 October (through his Telegram channel).

The functionalities would also allow participants to gift their friends and introduce Toncoin-based NFTs before 2024-end. He stated:

Later this year, we’ll introduce the ability to convert these limited-edition gifts into TON-based NFTs. Users will then be able to auction and trade these tokenized gifts outside Telegram, with ownership recorded on the blockchain.

TON price performance

The coin lost nearly 2% the past day to trade around $5.11 at press time. TON exhibits a bearish outlook after the recent market-wide selloffs triggered a 20% plunge to $5.06 from $6.06.

Source – Coinmarketcap

Meanwhile, the token stares at a massive resistance zone from the declining trendline, suggesting seller dominance.

The obstacle has kept TON prices subdued since July 2024.

Continued selling pressure might call the reliable support barrier at $4.5, with more downsides opening the path to $3.3.

That would translate to a nearly 55% dip from current prices.

However, the surging stablecoin supply on the TON network and TVL places Toncoin for early bounce-backs upon broad market rallies.

Significant bull momentum in the crypto space could catalyze a breakout from the nearest resistance and drive prices past $6.

Bulls could push toward the resistance at $7.2 – a 41% increase from Toncoin’s prevailing price.

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