Toncoin Hits Record High Daily Active Addresses, but Is TON a 'Bubble'?

A surge in active addresses increases TON's network activity helping TON break and stay above the 100 SMA level.

Toncoin, the native cryptocurrency of the Open Network (TON), has recently seen notable spikes in key metrics, largely influenced by developments surrounding Telegram’s founder. One significant metric that saw a spike was the number of active addresses on the Toncoin network. According to data from Footprint Analytics, by 29 August, the number of active addresses had surpassed 600,000. This marked the highest level of active addresses in Toncoin’s history.

However, despite this impressive achievement, the price of Toncoin seemed to be struggling to maintain its momentum. At the time of writing, Toncoin was trading at $2.63, down by 1.21% over the past 24 hours. This downtrend was also evident in the broader cryptocurrency market, with most major cryptocurrencies, including Bitcoin and Ethereum, experiencing slight decreases in value.

To put things into perspective, Toncoin hit an all-time low of $0.40 during the crypto market crash in May 2022. From there on, the asset began an impressive rally, surging by over 500% to hit a high of $2.20 in early June. Following this price surge, Toncoin encountered resistance at the $2.20 level and began to consolidate within a narrow range.

This consolidation period lasted for several weeks until late July, when the price of Toncoin started to rally once again. This second price surge was fueled by news of Telegram’s founder, Pavel Durov, being arrested in Spain at the behest of the Russian authorities. In response to this news, Toncoin’s price surged by over 100% in a matter of hours.

This price spike was accompanied by a massive surge in trading volume, with over $200 million in Toncoin being traded on centralized exchanges in a single day. This trading activity helped propel Toncoin to become one of the best-performing cryptocurrencies in the past month. However, despite this impressive performance, Toncoin’s price rally appears to be slowing down, at least for now.

According to data from Footprint Analytics, the Relative Strength Index (RSI) for Toncoin is currently around 40, which is a sign of the asset being in a bearish phase. This could indicate that further price decreases may be on the horizon in the short term.

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