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- Toncoin price rose 3.6% to $6.39, but network activity, including swaps and active addresses, declined.
- Analysts have linked price trends to decentralized exchange engagement.
Toncoin (TON) is seeing a notable recovery after hitting a recent low of $5.53 on December 10.
The cryptocurrency, which had been facing a downward trend in recent weeks, jumped 3.6% over the past day, trading at $6.39 at the time of writing.
Despite this rise, TON remained down 3.3% over the past week and nearly 3.9% over the past two weeks.
This fluctuating performance attracted the attention of analysts, who revealed the factors behind TON’s price movements.
A CryptoQuant analyst recently shared knowledge in TON’s network activity, highlighting a decline in decentralized exchange (DEX) engagement.
The analyst noted a decrease in the number of swaps and liquidity pools available on TON’s DEX platforms, including Stone.FI and DeDust.
Historically, increased activity on these DEXs has directly correlated with rising TON prices, while a decrease in engagement has accompanied price corrections.
This trend suggests that TON’s price volatility, particularly the fluctuation between $7.20 and $5.20, has led to a reduction in interest in decentralized trading and liquidity provision.
Mixed signals emerge
Despite the observed decline in DEX activity, TON Open Interest, a measure of the total value of outstanding derivative contracts, showed positive momentum.
Data of Coinglass reported that TON’s open interest increased by 2.77%, reaching $214.07 million. Likewise, the volume of open interest increased by 7.10%, now valued at $169.73 million.
Source: Coinglass
These moves suggest renewed interest from traders and investors in the TON derivatives market, potentially signaling a more optimistic outlook for the cryptocurrency.
However, the data from Glass knot painted a less favorable picture. Notably, TON’s active addresses, which indicate the number of unique users interacting with the network, are steadily declining.
Source: Glassnode
Active addresses fell from 3.8 million at the end of October to just 1 million as of December 15.
Read Toncoin (TON) Price Prediction 2024-2025
This significant reduction reflects a decrease in user engagement, which could pose challenges in maintaining price momentum in the long term.
The decline in active addresses may indicate a decrease in retailer participation or general interest in the TON ecosystem, potentially limiting the network’s growth and adoption.
