Telegram founder Pavel Durov’s controversial arrest over the weekend by French authorities at Le Bourget airport has triggered a spike in on-chain activity for the Toncoin (TON) network. Amid concerns about the potential fallout, TON’s price has accelerated its decline.
TON Price Action Turns Bearish
Toncoin, a major altcoin with a fully diluted valuation of $28 billion and an average daily trading volume of $1.3 billion, ended last week at around $5.80—down over 18%. This sharp drop suggests that bearish forces are dominating and could continue to push prices lower.
The Relative Strength Index (RSI) for TON against the US dollar also dipped below 50% on the weekly chart for the first time since February, signaling a weakening market trend.
Investor Response: Support or Sell?
Reactions from investors have been mixed. While some have shown support for Durov by investing in TON and its projects, on-chain data shows that others are exiting. Lookonchain identified one liquidity provider who sold over 356,000 TON tokens, worth nearly $2 million, earlier today.
Will Toncoin Face a Liquidity Crunch Crisis?
Despite this significant sale, it’s too soon to assume other major players are following suit. Toncoin still holds over $3.4 million in liquidity across decentralized exchanges, with Uniswap (UNI) at the forefront.
Competing networks like Tron (TRX) have outperformed Toncoin, as TON’s price slipped further to $5.50 on Monday. However, the Toncoin network remains a strong player in the Web3 space, with $619 million in stablecoins circulating and over $388 million in total value locked.
Market Picture
A surge in meme coins, led by Notcoin (NOT) and DOGs, has helped Toncoin stay relevant. These tokens have injected new life into the Toncoin ecosystem, keeping it competitive in the evolving crypto market.
Do you believe the meme coins on the Toncoin network can help it bounce back? Let us know your predictions.
