Toncoin price has staged a strong recovery recently even as other cryptocurrencies have remained deeply under pressure. TON token surged to a high of $6.40 on Friday morning, its highest swing since April 19th. It has soared by almost 405 from its lowest point on May 1st and by 535% from its lowest level in 2023, giving it a market cap of over $22 billion.
Toncoin DeFi TVL is soaring
The Open Network, a leading blockchain network backed by Telegram, has slowly become one of the biggest players in the crypto industry. Its market cap has made it the eighth biggest cryptocurrency in the world, making it bigger than tokens like Dogecoin, Cardano, Shiba Inu, Avalanche, and Tron.
One reason for this is that Telegram has become one of the fastest-growing social media networks in the world. The most recent data showed that the platform has over 900 million active users and its trend is growing. Analysts believe that $TON will become a great payment option for Telegram users.
Toncoin price has also soared because of its growing ecosystem. Data by DeFi Llama shows that the network’s total value locked (TVL) has surged to over $549 million in the past few weeks. That growth makes it the 17th-biggest player in the DeFi industry.
Most of its biggest networks are in the liquid staking industry, which helps users to earn returns on their $TON tokens. Tonstakers has a TVL of $227 million while Bemo, Stakee, and Hipo have $70 million, $15 million, and $3.7 million.
Notably, in terms of DeFi, data shows that the Toncoin is one of the networks seeing strong growth as the crypto winter grows. Its assets have jumped by 20% in the past 30 days. In contrast, Ethereum, Solana, and Tron have lost over 10% of their assets in this period.
There are other reasons why the Toncoin price has soared. For example, the number of transactions in the network are soaring after the developers launched Tether (USDT) on the network. Also, more developers are taking advantage of its popularity to launch new products.
Toncoin price forecast
Turning to the daily chart, we see that the $TON token price bottomed at $4.60 on May 1st as Bitcoin plunged to about $56,500. It has now rebounded by over 30% and crossed the crucial 50-day Exponential Moving Average (EMA).
The Bull Bear Power has moved above the neutral point. At the same time, the Coppock Curve has also risen. Coppock is a technical indicator that smoothes the momentum indicator that looks at the rate of change of an asset.
TonCoin bulls seem to be targeting the year-to-date high of $7.68, which is about 20% above the current level. If it moves above that level, the token will form a double-top pattern whose neckline is at $4.60. In price action analysis, this pattern is one of the most bearish ones in the market.
