TON’s 10% Fall: Why Telegram’s New USDT Policy Isn’t Helping

Toncoin (TON) recently faced a significant price drop, falling by over 10% in a short period. This decline coincided with Telegram Wallet’s announcement that it would not charge any fees for transferring USDT to other wallets on the TON network until the end of June. Despite the positive intentions behind this policy, it has not resulted in a positive price impact for TON. This article examines the factors contributing to this price decline and the broader implications for the TON ecosystem.

Telegram’s USDT Policy and Network Activity

Telegram Wallet’s decision to waive fees for USDT transfers on the TON network aimed to boost user activity and adoption. This policy was supported by the TON Foundation, which allocated 11 million Toncoin to encourage USDT transactions on the network. The initiative significantly increased the circulation and use of USDT on TON, driving higher network activity. Over the past month, the number of daily active users on the TON network grew by 19.6%, and the network’s revenue surged by 266.3%.

Developer and Ecosystem Growth

In addition to user activity, the number of core developers on the TON network increased by 22% within 24 hours, with code commits soaring by 179%. This growth in development activity indicates a robust and expanding ecosystem, potentially leading to new applications and enhanced functionality on the TON network. More developers can contribute to improved scalability and transaction processing capabilities, making the network more attractive to users and investors alike.

Market Sentiment and Price Decline

Despite these positive developments, TON’s price has continued to decline. At press time, TON was trading at $6.16, down by 10.79% over the last 24 hours. This decline is attributed to several factors, including market sentiment and broader cryptocurrency market trends. The recent increase in network activity and developer engagement has not been enough to counteract the negative sentiment and selling pressure affecting TON.

New Addresses and Network Growth

A key factor in the price decline is the reduction in new addresses showing interest in TON. Over the past few days, network growth has declined, suggesting that potential new users are not engaging with the TON token as expected. This lack of new interest could lead to further price declines if the trend continues, as new users and investors are essential for sustaining and driving up the token’s price.

Strategic Considerations for Investors

Investors in Toncoin should consider several strategies to navigate the current market conditions:

• Monitoring Network Activity: Keeping an eye on the number of active users and transaction volumes can provide insights into the network’s health and potential for future growth.
• Analyzing Developer Engagement: The increase in core developers and code commits is a positive sign, indicating potential future improvements and innovations on the network.
• Assessing Market Sentiment: Understanding broader market trends and sentiment will help investors make informed decisions about buying or selling TON.

Conclusion

Despite Telegram’s efforts to boost the TON ecosystem through its new USDT policy, Toncoin has experienced a significant price decline. The increase in network activity and developer engagement highlights the potential for long-term growth, but the immediate market sentiment remains bearish. Investors should remain cautious and vigilant, leveraging comprehensive analysis and strategic planning to navigate the current market dynamics. Understanding the broader context and key indicators will be essential in making informed decisions about Toncoin investments during this period of heightened activity and uncertainty.