Toncoin price moved sideways after the TON Blockchain suffered a major setback last week when Tapswap selected another blockchain for its airdrop.
Toncoin (TON) token was trading at $3.8515 on Tuesday, 55% below its all-time high. This decline has brought its market cap to $9.5 billion, making it the 16th largest cryptocurrency in the industry.
TON faced a significant setback after Tapswap, a leading player in its tap-to-earn ecosystem, selected BSC Chain for its airdrop. In a note, the developers justified the decision by pointing to BNB’s larger ecosystem, lower transaction costs, and greater user base.
DeFi Llama data shows that BNB has over 1.17 million active addresses and more than 840 dApps, including well-known platforms like Venus, PancakeSwap, and Lista. In comparison, TON is a smaller network with a total value locked of $217 million.
Tapswap opted for BNB after other tap-to-earn tokens on the TON Blockchain saw sharp declines. Popular tokens like Hamster Kombat, Catizen, and DOGS have all plummeted by over 80% from their all-time highs. Given this trend, Tapswap likely aims to avoid a similar price drop by leveraging one of the largest ecosystems in the crypto industry.
On the positive side, on-chain data indicates that the TON network is steadily 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.
Transaction activity on the TON network is also growing. On Monday, its fees rose to 15,117 TON tokens, the highest level since Jan. 24, while the number of daily transactions jumped to nearly 4 million.
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.
Toncoin has also formed a death cross pattern as the 50-day and 200-day Exponential Moving Averages crossed each other. A death cross is 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.
