Telegram-backed blockchain, TON, also known as the Open Network, has been experiencing steady growth since its launch in August 2021. This decentralized computer network, consisting of a layer-1 blockchain with various components, has gained popularity due to its scalability and high throughput. Its association with Telegram has further contributed to its success by attracting more users and expanding its practical applications.
According to a graph from CryptoQuant, TON’s market capitalization reached a peak of around $40 billion before experiencing fluctuations, which is typical of the volatile nature of the crypto market. Financial analyst Shiven Moodley points out that the relationship between circulation supply, market capitalization, and liquidity is complex. It is suggested that a portion of TON tokens are either locked or held for long-term investments, which affects the liquidity necessary for daily trading volumes. This discrepancy between market capitalization and circulating coins indicates that there are a significant number of locked-up tokens, but circulating coins are crucial for market valuation.
Further econometric analysis reveals the average market capitalization-to-price ratio, which provides insights into market behavior. The graph shows a positive linear relationship between market cap and circulating supply, indicating that market movements are driven more by utility and adoption rather than speculation. This alignment signifies the maturity of the market, where valuation is becoming more closely aligned with underlying economic operations rather than speculative trades.
The difference between market capitalization and token price determines the degree of over or undervaluation based on various market factors and internal TON factors. These econometric considerations can help investors and stakeholders make more informed decisions about investing in the token, rather than relying solely on market price movements.
Looking ahead, TON’s integration with Telegram is expected to continue driving its growth. This partnership not only increases the network’s functionality and user base but also demonstrates the versatility and stability of the blockchain, which can support scalable applications. In terms of future trends and decision-making, Moodley’s econometric factors will be invaluable for investors and users alike.
TON’s journey reflects a blockchain that is evolving closer to traditional economic indexes and moving away from speculation. With its strategic initiatives and solid foundation, TON has the potential to continue growing and become a significant player in the future digital economy.