USDT’s popularity on Toncoin rises: Will this trigger a TON bounce?

• USDT’s popularity on TON increasing steadily.
• TON price action consolidating while respecting down trendline.

Toncoin [TON], the crypto associated with the The Open Network blockchain, continues to gain traction among crypto enthusiasts, driven by recent developments.

The TON network is playing a key role in the wider adoption of cryptocurrency, particularly through its support of stablecoins. Stablecoins, such as USDT, are essential as they serve as an entry point into the crypto market.

In fact, USDT on the TON blockchain has been growing rapidly in popularity. Over the last 30 days, USDT transactions on TON reached over 4.5 million, with transaction volumes exceeding $300 million.

Source: CryptoQuant

The rise of USDT on the TON blockchain leads to a deeper examination of USDT’s market dominance and its effect on TON’s price.

As of press time, USDT’s dominance sits at 5%, with its highest point recorded during the August market crash, when most cryptocurrencies saw significant declines.

Currently, USDT dominance is trending downwards and approaching a critical support level. If it breaks below this support, it could signal a bullish movement for cryptos, including Toncoin.

However, if USDT holds its position, it may indicate a continuation of the current trend, potentially putting downward pressure on the TON price.

Source: TradingView

TON in a range

Toncoin’s price action has been consolidating within a range, adhering to a descending trendline since the beginning of the fourth quarter.

Despite this consolidation, it appears that TON may have found a bottom around a FVG zone. The increasing adoption of stablecoins, particularly USDT, on the TON blockchain suggests that a long-term bullish outlook for TON could be on the horizon.

The price correction following Toncoin’s bullish run in early September has created anticipation among traders.

Source: TradingView

With USDT’s growing popularity, more stablecoins could be converted into TON, which would increase demand for the cryptocurrency.

Further analyses of the profitability of active addresses on the TON blockchain reveals that approximately 80% of addresses are “at the money,” meaning they are neither at a loss nor profit.

Meanwhile, 4% of addresses are in profit, and 16% are at a loss. This indicates that most Toncoin holders acquired their tokens around the current price level, which is $5. This makes the current price an attractive entry point for those looking to invest.

Source: IntoTheBlock

Read Toncoin’s [TON] Price Prediction 2024–2025

However, traders should exercise caution as a break below this level could signal continued decline before a potential bounce.

Toncoin’s growing integration with stablecoins, particularly USDT, supports a long-term bullish outlook. However, traders should remain vigilant for any short-term corrections that could impact the price.