- TON’s market cap surged in 2024, but a disparity with circulating supply suggests liquidity issues due to locked or long-term held tokens.
- Daily active addresses on TON grew from 26,200 in January to over 902,000 by September, showing significant user activity growth.
- TON’s DEX trading volume rose 760% year-to-date, with September averaging $17.2 million, reflecting strong interest in the platform.
The Open Network (TON) has experienced impressive growth throughout 2024. Since January, its market capitalization has surged, yet its circulating supply has lagged behind.
According to Shiven Moodley, an on-chain analyst at Cryptoquant, this disparity points to a possible liquidity issue within the network. He suggests that some tokens may be locked or held long-term, limiting their availability in the market. This imbalance could affect both short-term liquidity and long-term market valuation.
Notably, TON has emerged as one of the top-performing blockchain projects in 2024, with its token rallying by nearly 340% in the first half of the year. Despite a recent pullback, the token remains up by 200% since January, currently trading at $5.57.
Furthermore, key metrics have shown strong growth, particularly in TON’s decentralized exchange (DEX) activity. The daily trading volume on the DEX has increased 760% year-to-date, reaching an average of 17.2 million this month. The surge in trading volume has captured the attention of investors and analysts alike.
Increased Activity on TON’s Network
Besides, TON has also seen a significant rise in user activity. In January, the network recorded around 26,200 daily active addresses. This number skyrocketed to over 902,000 by September, marking a substantial increase in user participation.
Additionally, the total number of daily transactions on the network rose from 232,286 at the start of the year to 2.8 million in September. The total value locked (TVL) on the network followed suit, increasing from $76 million in January to $741.3 million as of this month. This growth reflects TON’s scalability, which has been driven by its high throughput capacity.
Potential Market Adjustments on the Horizon
However, despite this remarkable growth, analysts have pointed to a growing disparity between TON’s market cap and its price fundamentals. Moodley’s analysis suggests that the widening gap could lead to market adjustments if the metrics begin to align more closely.
Hence, the divergence between market capitalization and circulating supply may indicate that the market is valuing the token differently from its underlying metrics. As TON continues to scale, the potential for a more balanced valuation may emerge in the coming months.
