The Open Network’s (TON) native token, Toncoin, has declined in price in the last 24 hours despite a recent trading approval in Kazakhstan.
Despite its sanction to trade in Kazakhstan, Toncoin (TON), the native token of the popular blockchain The Open Network, has experienced a substantial decline of over 7% in the past day. Even though the digital asset was introduced to the market under favorable conditions to compete with other cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Avalanche (AVAX), Polygon (MATIC), Aptos (APT), and Cardano (ADA), this unexpected reduction occurred.
TON experiences a decline of more than 7%
The Financial Services and Regulatory Committee (AFSA) of Kazakhstan signed the authorization for TON to trade in the region on June 28. The regulator determined that the digital asset must satisfy the eligibility criteria in the Asian nation.
Following the news, numerous investors anticipated a surge in Toncoin’s value, as they anticipated heightened market activity and confidence due to the region’s substantial population.
Toncoin’s value declined by over 7% on Thursday despite these optimistic expectations, according to data from CoinMarketCap. From the $7.81 it traded the previous day, the digital asset is currently valued at approximately $7.35. Its market capitalization is slightly greater than $17 billion.
Activities on the blockchain have continued to increase even though TON is presently in turmoil, as is the broader crypto market. The Open Network has $665 million in total value locked (TVL) as of June 4. The protocol’s stablecoin holdings exceed $559 million, as indicated by DefiLlama data.
The protocol, closely linked to the social media messaging app Telegram, achieved the $600 million milestone in TVL in June and has since continued to expand, reaching the $620 million milestone on June 20.
Bitcoin’s price plummets beneath a critical threshold
Even though the platform has experienced a surge in activity, the token’s decline remains a concern for numerous investors. TON is one of many cryptocurrencies that have experienced a decline in the past 24 hours. BTC experienced a protracted decrease over three consecutive days on Thursday, which resulted in a dip below $58,000 and out of the $60,000 range. Subsequently, the foremost digital asset has evaporated approximately five percent of its value.
The Bitcoin price experienced a substantial decline, falling below the 200-day simple moving average (SMA), a critical technical indicator. To ensure clarity, the 200-day SMA is a frequently employed metric in financial markets, which encompasses both traditional equities and cryptocurrencies. The average closing price of an asset over the past 200 days offers analysts and speculators a perspective on long-term price trends.
The price of an asset can indicate a potential shift in market sentiment or trend when it falls below this average—in the case of Bitcoin, the crypto asset reached a price level that has not been observed since May 2.