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Toncoin Hits Record High Activity—Is a Massive Surge Coming or Is TON a ‘Bubble’?

Toncoin Hits Record High Activity—Is a Massive Surge Coming or Is TON a ‘Bubble’?
Key Points
  • Toncoin’s daily active addresses skyrocket to a record high, fueling market optimism.
  • Analysts debate whether TON’s rapid growth signifies a bubble or sustainable progress.
  • TON’s chart patterns indicate a potential 50-60% bullish wave ahead.
  • Altcoin season looms as global liquidity surges, with TON poised for significant gains.

Toncoin (TON) has been making waves in the crypto space, driven by an impressive surge in network activity. Recently, the TON Masterchain hit a milestone of 946 daily active addresses, marking a 7x increase since July 2021.

This sharp rise reflects a growing interest in the Toncoin ecosystem, suggesting a broader adoption of decentralized applications (dApps) and work chains within the network.

But while these numbers paint a bullish picture, some analysts are beginning to question whether Toncoin’s growth is sustainable or if it might be heading towards a bubble.

TON’s Bullish Indicators—Is $10 per Coin Within Reach?

The recent spike in daily active addresses is more than just a number; it’s a sign of increasing engagement within the Toncoin ecosystem. This activity boost has sparked discussions among traders and investors about the potential for significant price movements.

On the technical front, the TON/USDT weekly chart reveals a reversal candle with a long tail—a classic sign of bullish pressure. This pattern is further supported by growing trading volumes in recent weeks, indicating that more traders are jumping on the Toncoin bandwagon.

Another key indicator pointing to a potential breakout is the tightening of the Bollinger Bands on the TON charts. This phenomenon often precedes a significant price movement, either up or down.

In Toncoin’s case, the indicators suggest a breakout to the upside is more likely, with the 100-day simple moving average (SMA) being the next hurdle to clear. If TON manages to break above this resistance level and sustain its position, a 50-60% bullish wave could be on the horizon.

Analysts are eyeing $10 per Toncoin as a realistic target, highlighting the strong upward momentum that could drive this altcoin to new heights.

The Bubble Debate—Are the Skeptics Right?

Despite the bullish outlook, not everyone is convinced that Toncoin’s growth is sustainable. Some analysts have raised concerns about the relatively low number of daily active users compared to the coin’s market performance, leading to speculation that the network might be overvalued.

The fear is that the recent surge in activity could be temporary, driven by speculative trading rather than genuine long-term adoption.

However, broader market metrics challenge this view. The TON Masterchain’s expanding ecosystem, combined with its growing liquidity and trading volumes, suggest that there is more to this growth than just hype.

The network’s progress, including the development of new dApps and work chains, points to a solid foundation that could support sustained growth in the future.

Additionally, the overall market conditions appear favorable for altcoins, with global liquidity on the rise and the potential for an upcoming altcoin season.

Altcoin Season and Global Liquidity—What Does This Mean for Toncoin?
The broader crypto market is also showing signs of strength, with global liquidity approaching a breakout point.

According to data from the Bitcoin Strategy Platform, liquidity has surged to over $80 trillion, creating a fertile ground for altcoins like Toncoin to thrive. This increase in liquidity, combined with the recent minting of USDT, could lead to significant gains across the crypto market, including for Toncoin.

As we move into late Q3 or early Q4 of 2024, the stage seems set for a strong rally in the altcoin market. New memecoins like DOGS, created by Telegram CEO Pavel Durov, are already generating liquidity within the Toncoin ecosystem, further boosting the network’s potential for growth.

If these trends continue, Toncoin could be one of the major beneficiaries of the upcoming altcoin season, driving its price even higher.

At press time, Toncoin’s market cap stood at $16.82 billion, with a fully diluted market cap of $34 billion. The trading volume in the last 24 hours was $227 million, with a volume-to-market cap ratio of 1.4%, indicating adequate liquidity. The circulating supply was 2.53 billion out of a total of 5.1 billion TON tokens.

While there are valid concerns about Toncoin’s rapid growth, the underlying metrics suggest that the network’s progress is far from a bubble. With strong technical indicators and favorable market conditions, Toncoin could be on the verge of a major breakout, making it a coin to watch in the coming months.

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