Toncoin’s growth in its DeFi ecosystem and the impending admission to Binance Launchpool have given it further momentum.
Over the past ten days, the price of Toncoin (TON) has increased significantly, hitting its greatest points in over four weeks as cryptocurrency traders evaluated a number of positive announcements in the ecosystem, including being included to the Binance Launchpool.
From an intraday low of $4.78 on August 5 to an intraday high of $7.26 on August 14, TON increased by more than 51%, according to data from Cointelegraph Markets Pro and TradingView. TON was up 10% in the previous day to $6.98 at the time of writing.
After gaining more than $17.67 billion in market value, TON is currently the eighth-largest cryptocurrency. The 24-hour trading volume increased by almost 90%, which is indicative of a high level of demand-side activity.
Let’s examine a some of the causes behind the most recent price increase in TON.
TON lands a spot on the Binance Launchpool platform
The largest cryptocurrency exchange in the world, Binance, announced that it will be adding TON to its Binance Launchpool platform, which sparked the current increase in the price of Toncoin, the native token of the Open Network.
“Binance is excited to announce the 56th project on Binance Launchpool -Toncoin (TON), a decentralized and open L1 blockchain.”
Users will be able to stake BNB and FDUSD to gain TON tokens when the token becomes accessible on the Launchpool on August 15.
The exchange released the token for spot trade on August 8, and the price of toncoin surged last week, rising more than 14% in a single day. Before, Binance was the sole place to trade the cryptocurrency in futures.
The Open Network’s partnership with Pyth network backs Toncoin price surge
The announcement of a strategic alliance between Pyth Network, a decentralized data oracle, and The Open Network to provide high-fidelity data to builders on TON coincided with TON’s performance on August 14.
Through the integration of Pyth’s pull oracle service into TON, developers on the blockchain may now request pricing data on-demand, enabling “their apps truly stand out.”
The CEO of Douro Labs and a major contributor to Pyth, Michael Cahill, reported that the price feeds are “secured by multiple layers of protection.”
“These measures are in place to give TON developers and all other supported ecosystems the confidence to build cutting-edge DeFi that will serve potentially millions of users.”
“The Open Network (TON), a decentralized blockchain platform, and @PythNetwork, a decentralized data oracle, have partnered to deliver high-fidelity data to builders on #TON.” 💎
Via @Cointelegraph ⬇️https://t.co/FsLzi31r7b
— TON 💎 (@ton_blockchain) August 14, 2024
The Open Network was just integrated into IntoTheBlock’s analytics platform, and TON’s list of partnerships with other industry heavyweights is expanding with the addition of Pyth.
These collaborations demonstrate the rising interest of institutions in layer 1 blockchain technology, which may have a favorable effect on its cost.
TON’s network growth
Led by casual games on the Telegram messaging app, The Open Network saw tremendous user growth and greater adoption during 2024 as a result of these advancements.
According to data from Artemis, within the previous 90 days, the number of unique daily active addresses (DAA) and daily transactions has increased, surpassing the Ethereum network, demonstrating this development.
The graph below demonstrates how TON has been more popular since the beginning of June. It has surpassed Ethereum (ETH) in terms of DAAs since June 10 and in terms of daily transactions since July 7.
The total value locked (TVL) on TON has expanded dramatically, according to additional data from DefiLlama. It climbed by almost 3,290% from $22.92 million on March 1 to an all-time high of $776.6 million on July 20. Since then, the TVL has decreased in value to $597.95 million.
Growing TVL indicates that more people are utilizing the network, which raises the demand for blockchain-based Toncoin.
BANANA token hits weekly high post $8.68M burn and 50x leverage futures launch
Following a $8.68M burn and the debut of Binance futures with 50x leverage, the BANANA token achieves a seven-day high, increasing trading volume by 129.79%.
The BANANA token’s platform, Banana Gun, executed a massive token burn that took 200,000 tokens out of circulation. This burn represents 2% of the whole supply, which is estimated to be worth $8.68 million. This is the first burn for the project in five months, and its goal is to lower the supply and maybe raise the value of the tokens.
BANANA token hits weekly high post $8.68M burn
The site released a big notification on August 14 about destroying 200,000 tokens. This reduces the overall quantity of BANANA tokens, a process known as “burning,” which is frequently used in the cryptocurrency market to make tokens more scarce and, hence, more valuable.
After the burn, BANANA’s price shot up to a weekly high in less than a day, indicating that the market was responding favorably.
“How was your day honey?”
– “Good, burnt $8.6M worth of $BANANA. 🍌🔥”2% of total supply destroyed forever.https://t.co/uVVwWDanke pic.twitter.com/O4hZehHRWQ
— Banana Gun 🍌🔫 (@BananaGunBot) August 13, 2024
Since this burn is the first in several months, it’s possible that the platform is attempting to spark interest in the token once again. In the event that market circumstances are favorable, the remaining tokens may see stronger demand and, consequently, higher prices due to this reduction in supply.
Listing on Binance futures with 50x leverage
Simultaneously, Binance said that customers can begin trading the token futures with a maximum leverage of 50x starting on August 15, 2024. Given that futures contracts allow traders to speculate on the token’s price, it is anticipated that this listing would increase trading activity.
Elevated leverage might potentially attract additional investors to the coin, hence augmenting trading activity and market recognition.
The Banana Gun project will be launched via Binance’s recently created Airdrop platform, where the token will also be published, the company said earlier in July. As a result, the token’s increasing visibility on the cryptocurrency exchange is indicated by the listing of token futures, which might encourage long-term interest.
Increased trading volume and open interest
With the news of the burn and the impending futures listing, BANANA’s trading activity has significantly increased. With a 129.79% increase in trading volume to $154.51 million, there is clearly more interest in the token.
Furthermore, open interest in the derivatives for the cryptocurrency rose by 3.82% to $8.54 million. The increase in open interest implies the establishment of new positions, which implies expectations of future price movement or volatility.
The token price fluctuated between an intraday high and low of $48.91 and $41.21, respectively, although the positive trend persisted. As of the time of writing, the price was trading at $45.13, up 4% from the support level and up 37% over the previous week.
Tokenized US Treasurys expected to surpass $3B by end of 2024
By the end of 2024, tokenized US Treasurys may have a $3 billion market value due to rising treasury yields and increased cryptocurrency use.
Stable, low-risk digital assets are in more demand due to the sharp increase in cryptocurrency use worldwide, which has climbed by 34% based on the number of holders since 2023. Within the cryptocurrency ecosystem, consumers may access government bonds using tokenized US Treasury bonds. As seen by the data below, tokenized products have grown rapidly since January 2023, with their entire market value rising by more than 150% year over year.
Three statistical models were used in Cointelegraph’s investigation to determine the sector’s potential market value by the end of 2024: linear regression, generalized autoregressive conditional heteroskedasticity (GARCH), and autoregressive integrated moving average (ARIMA). The estimated capitalization of the 12 tokenized US Treasury goods combined is shown in the image below.
The linear regression model anticipates $2.47 billion, the ARIMA model predicts $2.12 billion, and the GARCH projects $3.93 billion. Bear, bull, and base-case scenarios, respectively, might be applied to them. By the end of 2024, a weighted combination of these three models predicts a market value of $2.66 billion.
Decentralized autonomous organizations (DAOs) are a possible source of capital inflow into tokenized US Treasurys, given their recent interest in them. Plans to invest in tokenized US Treasurys have been revealed by two DAOs, MakerDAO and Arbitrum. Approximately 1% of its treasury, or $25 million, will be invested by Arbitrum, whereas Approximately 19% of its treasury, or $1 billion, will be allocated by MakerDAO. The majority of DAOs don’t have stablecoin reserves, which might be quickly changed into bonds with yields. To maintain long-term stability, some are now, nonetheless, combining their treasuries with physical assets.
DAO treasuries frequently consist largely of their own tokens. The precise process by which DAOs may turn their Treasury tokens into tokenized bonds is unknown. They may look to form partnerships with bond issuers and try to pledge the illiquid tokens as security, or they could gradually buy up the tokenized bonds, as an alternative to selling them on the open market. By doing this, volatility would be lessened and the price effect of abrupt, large-volume transactions would be avoided.
Significant inflows may result if other DAOs decide to tokenize US Treasurys using a part of their treasuries. DAO treasuries totaled $24.3 billion as of July 30. Tokenized US Treasury allocations of 1% (bear), 5% (base), and 10% (bull) might result in possible extra inflows of $243 million, $1.22 billion, and $2.43 billion, in that order. In all, this would represent a rise of 13% to 31% from the $1.85 billion market valuation of tokenized US Treasury securities as of right now.
In conclusion, Cointelegraph predicts that as cryptocurrency investors look for low-risk, yield-bearing methods to part with their cash, the market for tokenized US Treasurys will increase. Challenges might materialize soon, though, as the Federal Reserve is predicted to begin lowering interest rates in September and could do so as soon as December, when they would have dropped from the current range of 5.25% to 4.5%. US Treasurys will lose appeal as an investment when the market moves into a regime of lower rates but sticky inflation.
