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- Toncoin is witnessing growth in its user base, with recent data showing a surge in TON holders that may enable the network to surpass Ethereum in user adoption.
- The token has seen notable holder growth, but profitability is still a concern, the asset’s market performance in the upcoming weeks will largely hinge on its capacity to surpass technical resistance levels.
Toncoin was launched in 2018 by the popular messaging app Telegram, since then, the Open Network has seen a surge in its value and market adoption. The significant growth in its user base suggests that Toncoin could eventually surpass Ethereum (ETH) in terms of total holders, potentially by the end of the year.
However, despite this expanding user base, Toncoin’s profitability measured by gains for investors who bought in earlier is trending downward. The growth in holders suggests optimism and broadening support, while the lower profitability hints at potential challenges in sustaining or increasing its market value.
Could Toncoin Surpass Ethereum (ETH)?
Toncoin (TON) has seen an increase in the number of unique wallets holding the cryptocurrency, now surpassing 100 million wallets and placing it as the 11th-largest cryptocurrency by market capitalization. This surge in holders began early in the year when there were just over four million wallets, reflecting nearly 25 times growth in a matter of months.
Between March 15 and October 17, the number of TON holders skyrocketed from approximately 7.12 million to nearly 108 million. TON easily outpaced Ethereum in terms of new user acquisition with a growth rate estimated at around 500,000 holders daily according to data from Cryptoquant.
Are Toncoin Holders Seeing Gains?
Approximately 75.43 million addresses, representing about 80.70% of all Toncoin holders are currently holding Toncoin at a loss, this is according to data from IntoTheBlock’s Global In/Out of the Money chart. In contrast, only around 13.16 million addresses 14% of all holders are “In the Money,” or actually gaining. The remaining 5.22% of holders are breaking even, neither gaining nor losing on their investments.
This outlook is notably different when we look at Ethereum, the second-best competitor to Bitcoin regarding technology, innovation, and use case. Data indicates that over 67% of its holders are profitable, with only 29% “Out of the Money”. This makes Ethereum more profitable to investors at the present time. Ethereum’s longer track record and established position in the market likely contribute to its stability, this also includes the recent update made on “The Splurge.” As reported by CNF, this is Ethereum’s latest roadmap release that aims to ensure transaction fees are optimized in order to increase scalability, increase security, and maximize its immunity to future threats.
Analysing Toncoin’s Current Market Position
Toncoin has made an increase of 0.38% over the last 24 hours, and each unit is currently trading at $5.06. However, it’s still below its 50-day moving average of $5.388, a key indicator used to assess market trends. Trading below this average suggests that Toncoin is in a medium-term bearish trend, as prices have yet to break above this level, indicating sustained downward pressure in recent weeks.
Despite Ethereum facing criticism for its underperformance compared to Bitcoin, the token saw a gain of 7% on Tuesday lagging down nearly 50% from its all-time high of $4,878. Ethereum trades around $2,640, following a 4.28% decrease in its trading volume in 24 hours settling at $20.87B.
