Toncoin Price Movement: Impact of Tapswap’s Blockchain Selection

The Toncoin price has been moving sideways after the TON Blockchain faced a significant setback. Tapswap, a leading player in its tap-to-earn ecosystem, chose the BSC Chain for its airdrop, citing BNB’s larger ecosystem, lower transaction costs, and greater user base as the reasons behind the decision. As a result, the Toncoin token has been trading at $3.8515, 55% below its all-time high, with a market cap of $9.5 billion, making it the 16th largest cryptocurrency in the industry.

TON Blockchain’s Current State

According to on-chain data, the TON network is showing signs of strengthening. The number of Toncoins burned daily has increased to 7,558 from this month’s low of 4,100. Token burns can support price appreciation by reducing the number of tokens in circulation. Additionally, transaction activity on the TON network is growing, with fees rising to 15,117 TON tokens, the highest level since January 24, and the number of daily transactions jumping to nearly 4 million.

However, the TON Blockchain still faces challenges. Tapswap’s decision to opt for the BSC Chain may have been influenced by the sharp declines of other tap-to-earn tokens on the TON Blockchain, such as Hamster Kombat, Catizen, and DOGS, which have plummeted by over 80% from their all-time highs. By leveraging the BSC Chain’s larger ecosystem, Tapswap may be trying to avoid a similar price drop.

Toncoin Price Analysis

The daily chart shows that the TON price peaked at $8.30 in June and has since fallen 53% to $3.7. It has dropped below the key support level of $4.5380, which was its lowest point in July and September last year. Additionally, Toncoin has formed a death cross pattern, a widely recognized bearish reversal signal, indicating that bears have taken control.

Currently, TON is hovering around the 61.8% Fibonacci retracement level. A break below this threshold could signal further downside, potentially pushing the price toward this month’s low of $2.9875—about 23% below its current level.

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Key Takeaways:

  • Toncoin’s price movement has been impacted by Tapswap’s decision to opt for the BSC Chain for its airdrop.
  • The TON Blockchain is showing signs of strengthening, with increasing token burns and growing transaction activity.
  • However, the TON Blockchain still faces challenges, including the decline of other tap-to-earn tokens and the formation of a death cross pattern in the Toncoin price chart.
  • Investors should be cautious and monitor the Toncoin price movement closely, as a break below the 61.8% Fibonacci retracement level could signal further downside.

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