Telegram-backed blockchain TON, also known as the Open Network, has been experiencing significant growth since its launch in August 2021. This decentralized computer network, consisting of a layer-1 blockchain with various components, has garnered attention for its scalability and high throughput, establishing itself as a prominent player in the crypto sphere.
One of the factors contributing to TON’s rise is its association with Telegram, which has greatly increased the number of users and practical applications of the blockchain. As shown in a graph from CryptoQuant, TON’s market capitalization reached a peak of around $40 billion before experiencing fluctuations typical of the volatile crypto market.
Financial analyst Shiven Moodley suggests that the liquidity of TON’s assets may be impacted by the disparity between its market capitalization and circulating supply. Moodley argues that a portion of TON tokens may be locked or held for long-term investments, hindering the liquidity necessary for daily trading volumes. This imbalance highlights the importance of circulating coins for market valuation, as locked-up tokens may be numerous but do not contribute to daily trading activity.
Further econometric analysis indicates a positive linear relationship between market capitalization, circulating supply, and market behavior. This suggests that market movements are driven more by utility and adoption rather than pure speculation. This alignment signifies a maturing market where valuation is aligning with underlying economic operations rather than speculative trades.
Understanding the difference between market capitalization and token price is crucial for assessing the actual over or undervaluation of TON, taking into account external market factors and internal TON factors. These econometric considerations provide valuable insights for investors and stakeholders, enabling more informed investment decisions that go beyond the noise often associated with market price movements.
Looking ahead, TON’s integration with Telegram is expected to continue playing a significant role in its growth. This partnership not only enhances the network’s functionality and user base but also showcases the versatility and stability of the blockchain, capable of supporting scalable applications. Moodley’s econometric factors will be invaluable for investors and users in predicting future trends and making informed decisions.
TON’s journey reflects a blockchain that aligns with traditional economic indexes, distancing itself from speculative tendencies. With strategic initiatives and a solid foundation, TON has the potential to sustain its growth trajectory and become an essential component of the future digital economy.
