- USDT’s offer for TON increased to a whopping $729 million in just four months
- TON made a gain of 24.64% in the last 7 days
Over the past week, Toncoin [TON]has shown a strong price recovery on the charts. At the time of writing, TON was trading as high as $5.79, having risen 4.4% in the past 24 hours. The altcoin also posted gains of almost 25% over the past seven days.
These gains have been byproducts of greater adoption and market favorability. What has also helped is the growth of USDT on Toncoin since the integration in April 2024.
The USDT offering on Tonco is $729 million
According to Cryptoquants analysisUSDT’s total supply on TON rose to a record high of $729 million over the past four months. The integration of USDT into TON began on April 18, 2024, and the following months saw significant growth.
Source: Cryptoquant
The magnitude of this growth underscored the stablecoin’s growing dominance within the TON blockchain. Undoubtedly, the integration by the TON foundation has played an important role in attracting the stablecoins needed for network expansion. Likewise, the growth of USDT offerings within the blockchain has enabled various financial transactions while supporting the broader adoption of TON.
According to the aforementioned report, USDT’s growth in TON is also well suited for rapid adoption of P2P value transfers. This has increased usage among retail investors, with an average transfer of around $15-$100. The preference of small investors is mainly driven by the low average transaction costs on TON of 4 cents, making them economically healthy.
Finally, Cryptoquant’s analysis noted that USDT is also making significant strides in the Toncoin blockchain in the form of high usage in decentralized exchanges (DEXs). Thus, USDT’s DeFi ecosystem on Toncoin is mainly formed by interactions of decentralized exchanges.
What does this mean for Toncoin?
Stablecoins like USDT play a crucial role in the cryptocurrency ecosystem by providing a stable store of value and facilitating seamless transactions.
Since USDT is the largest and most widely used stablecoin in the world, the integration was critical for Toncoin. Using USDT helps with Toncoin adoption, especially for users focused on P2P USDT transactions.
What about TON charts?
An increase in the supply of USDT on TON implies that Toncoin is increasingly adopted by users. Such market favorability positions the altcoin to make more profits.
This market phenomenon can be further illustrated by increased investor preference.
Source: Santiment
For example, Toncoin’s open interest per exchange has risen consistently in recent months. In fact, in the past week, Toncoin’s Open Interest in exchanges has increased from $94 million to $104 million.
This is a sign that investors continue to open new positions while maintaining existing positions. This is a bullish signal, with investors expecting further price gains.
Source: Coinglass
Additionally, liquidations for TON have remained relatively low since the August 5 market crash. For example, over the past seven days, liquidations of long positions have fallen from $4 million to $8.5k at the time of writing.
Simply put: TON is experiencing a favorable situation in the market. This phenomenon can be further supported by the greater supply and interaction of USDT on Toncoin. Therefore, Toncoin may be well positioned for further gains. And if current conditions persist, the altcoin will challenge the $6.74 resistance level.
