Shiven Moodley, an on-chain analyst at Cryptoquant, spotted a disparity between The Open Network’s (TON) market capitalization and its circulating supply. Moodley believes this suggests that some TON tokens are either locked up or held for the long term, affecting liquidity.
Evaluating Liquidity Dynamics on the $TON Network
“The disparity between market capitalization and circulating supply may suggest that a portion of the tokens are either locked or held long-term, impacting liquidity.” – By @ShivenMoodley
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— CryptoQuant.com (@cryptoquant_com) September 23, 2024
Moodley highlighted TON’s impressive growth since August 2021, pointing to the project’s strong scalability, fueled by its high throughput capacity. The on-chain analyst also mentioned TON’s partnership with the Telegram messaging platform, emphasizing how it has helped the project’s development in recent years.
Chart Reveals Growing Disparity
Moodley shared a chart from the Cryptoquant analysis platform illustrating the trends of TON’s market cap and circulating supply. The chart showed that the gap between these two metrics has widened since Q1 2024, with TON’s market cap shooting up significantly without a corresponding increase in circulating supply.
Further analysis from the Cryptoquant expert indicates that the observed divergence between TON’s market capitalization and price suggests the token is being valued differently from its fundamental metrics. However, a more balanced market valuation could emerge if the trends of these metrics align.
TON was a top performer in the first half of 2024 when the open-source decentralized blockchain’s token rallied nearly 340% to hit an all-time high of $8.28. Even after a pullback, the altcoin was trading at $5.57 at the time of writing, representing a 200% profit since the start of the year.
On-Chain Data Shows Significant Growth
On-chain data reveals that the daily average trading volume on TON’s decentralized exchange (DEX) reached 17.2 million this September, marking a 760% year-to-date growth. Back in January, the number of daily active addresses on TON was around 26,200. That number jumped to an impressive 902,737 in September.
Read also: TON Ecosystem Expands: DeFi, Gaming Drive 1 Million Active Wallets
Other important metrics showcase TON’s remarkable growth pattern, including the number of daily transactions, which increased from 232,286 in January to 2,823,801 in September, a 12x jump. The network’s total value locked (TVL) also experienced a significant surge, rising from about $76 million at the beginning of the year to $741.3 million as of September.