Despite the surging activities on the platform, the token’s drop is still a matter of concern to many investors, although TON is not alone or the only crypto experiencing a decline in the last 24 hours.
Toncoin (TON), the native token of the popular blockchain The Open Network, has experienced a significant drop of over 7% in the past day despite gaining approval to trade in Kazakhstan. This unexpected drop occurred even as the digital asset was introduced to the market under favorable conditions to compete with other cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Avalanche (AVAX), Polygon (MATIC), Aptos (APT), and Cardano (ADA).
TON Dips Over 7%
On June 28, Kazakhstan’s Financial Services and Regulatory Committee (AFSA) signed authorization for TON to trade in the region. The regulator said the digital asset met the criteria required to be eligible in the Asian country.
Many investors anticipated a boost in Toncoin’s value following the news, expecting increased market activity and confidence due to the region’s massive population.
Despite these optimistic expectations, Toncoin’s value declined by more than 7% on Thursday, according to data from CoinMarketCap. The digital asset is currently valued at around $7.35 from the $7.81 it traded the previous day. Its market capitalization stands a little above $17 billion.
While TON is currently in turmoil along with the broader crypto market, activities on the blockchain have continued to soar. As of June 4, The Open Network has $665 million in total value locked (TVL). DefiLlama data shows that the protocol has over $559 million in stablecoins.
The protocol, heavily associated with the social media messaging app Telegram, crossed the $600 million milestone in TVL in June and has continued to grow since then reaching the $620 million milestone on June 20.
Bitcoin Drops below a Critical Price Level
Despite the surging activities on the platform, the token’s drop is still a matter of concern to many investors, although TON is not alone or the only crypto experiencing a decline in the last 24 hours. On Thursday, BTC experienced a prolonged decline over three consecutive days dipping its toes outside the $60,000 range to under $58,000. Since then, the leading digital asset has shredded approximately 5% of its value.
This decline was significant as Bitcoin price dropped below a critical technical indicator known as the 200-day simple moving average (SMA). For clarity, the 200-day SMA is a commonly used metric in financial markets, including both traditional stocks and cryptocurrencies. It represents the average closing price of an asset over the last 200 days, providing analysts and traders with insights into long-term price trends.
When an asset’s price moves below this average, it can signal a potential shift in market sentiment or trend, and in the case of Bitcoin, the crypto asset dropped to a price level not observed since May 2.
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