Toncoin price has pulled back in the past few days as the momentum in the crypto industry faded. The $TON token was trading at $7 on Tuesday, down from the year-to-date high of $7.87. It is still one of the best-performing tokens as it jumped by almost 400% from its lowest point a year ago.
Notcoin and Tapswap hype is slowing
Toncoin has done well in the past few months, helped by the recent growth of its ecosystem. For example, TON has now become the 13th biggest chain in the blockchain industry with over $855 million in total value locked (TVL). It has become bigger than some of the most popular networks in the industry like Cardano, EOS, IOTA, Near Protocol, and Fantom.
Tonstakers is the biggest player in Toncoin’s ecosystem with over $270 million in total value locked (TVL). It is a liquid staking platform similar to Lido and Jito. it allows users to generate passive income by simply holding the tokens. The other big players in the ecosystem are STON.fi, DeDust, bemo, and Stakee.
Toncoin has also jumped recently because of the growing popularity of play-to-earn Telegram apps like Notcoin and TapSwap. These two platforms have attracted millions of users in the past few months. Users can earn tokens by simply playing simple games in these apps.
Recently, however, there have been signs that the momentum in these tap-to-earn tokens is slowing. For example, the Notcoin price has crumbled by more than 40% from its highest point this month, making it one of the worst-performing tokens in the industry.
Historically, cryptocurrency projects start with a lot of hype and then the momentum fades. It started with play-to-earn networks like Decentraland (MANA), Axie Infinity, and The Sandbox (SAND). Recent on-chain data shows that activity in these platforms has died down.
The same is true with move-to-earn networks like STEPN and Sweatcoin. These platforms attracted millions of users in the early days only for the activity to retreat sharply afterwards.
Toncoin price forecast
The daily chart shows that the TON price surged from last June’s low of $0.98 to $7.87 earlier this month. Now, the token has pulled back sharply and dropped to the psychological level of $7.
There are signs that the token formed a triple-top pattern, which is a popular bearish sign. On the positive side, it has remained above the 50-day and 25-day Exponential Moving Averages (EMA), signaling that bulls are still in control.
Therefore, the token will likely remain under pressure for a while since the crypto industry is going through substantial weakness. More upside will only be confirmed if the token rebounds above the resistance level at $7.60.
