Toncoin’s market value reaches $13.96 billion amid Durov controversy

Having 1.1 million users each day, Toncoin achieved a noteworthy milestone. However, its market was turbulent when Telegram chief executive officer Pavel Durov was arrested.

Inside (TON) The Open Network environment, Toncoin has recently experienced exceptional progress, exceeding 1.1 million active users every day and attaining a market value of $13.96 billion.

As of August 26, Toncoin (TON $5.36) had the largest market capitalization in the TON ecosystem, surpassing the DAUs milestone on May 13. This information is based on statistics from IntoTheBlock (ITB).

In the last two days, Telegram chief executive officer Pavel Durov was arrested following his plane’s landing at Le Bourget airport outside of Paris, and this was his ascent to the highest market cap place inside the TON ecosystem.

Concentration of whales

ITB data shows that whale investors were highly concentrated in two tokens in the Ton ecosystem: Gomining and Ston, where significant stakeholders held 98% of the tokens.

As of August 19, before Durov was arrested, this whale concentration was valid.

The potential impact of whales on the ecosystem is encouraging, but there is a risk of instability because huge holders may have a large impact on market movements.

Prior to the panic sell-off, Toncoin

On August 25, the day after the report of Durov’s arrest surfaced, the value of Toncoin fell drastically by 25% to $5.24.

Even with the price decline and change in market mood, TON appeared to be well-positioned for the subsequent rally based on a number of technical and market variables.

Macron makes a comment regarding the debacle

During an official visit to Serbia, French President Emmanuel said at a press conference on August 29 that he was unaware of Durov’s travel to France and had not invited him to the nation.

Macron clarified that he was completely ignorant of Mr. Durov’s visit to France and reaffirmed that the French legal system will handle Durov’s case on its own.

Durov was charged by French authorities, and although he is now free on a 5 million euro bail bond, he is required to stay in France and report to law enforcement every week.

Will Toncoin, which is tied to Telegram, recover following Pavel Durov’s arrest?

If Durov’s arrest turns out to be an isolated incidence, TON traders may see the current decline as an opportunity to purchase low.

In the last day, Toncoin (TON) has seen a sharp decline in price due to panic selling that followed the unexpected arrest of Telegram chief executive officer Pavel Durov by French authorities.

A day later the announcement of Durov’s incarceration went public, on August 25, TON’s price dropped as much as 25% to $5.24. Durov is accused of violating cryptocurrency regulations and data privacy laws.

Due in large part to Telegram’s role in the promotion and integration of Toncoin into its ecosystem, Durov plays a pivotal role in the storyline and future developments of the coin. Several Toncoin investors have panicked and sold their holdings as a result.

However, TON might be ready for a significant comeback in the upcoming weeks, according to a number of technical and market indicators.

TON will probably mimic BNB’s tremendous recovery

The current decrease in TON’s price looks to be comparable to Binance BNB $537’s performance in the days preceding former chief executive of Binance Changpeng Zhao’s imprisonment.

Prior of the chief executive of Binance Changpeng Zhao’s (CZ) April 30 sentencing in the US, BNB dropped 13.50%. Nevertheless, the digital currency staged a spectacular comeback when the regulatory dust settled, rising by roughly 35% from its lows to surpass approximately $700 on June 6.

Panic selling ensues when legal issues surface, particularly involving prominent individuals such as CZ and Durov, as investors seek to shield their holdings from possible negative consequences.

But after the first shock wears off, the market reevaluates the circumstances in a more sensible manner.

In BNB’s situation, traders concluded that although the legal difficulties were substantial, they did not represent a serious risk to Binance, the firm, or its ecosystem after the dust cleared surrounding CZ’s sentencing.

This caused investors who had sold out of terror to reenter the market, which caused a psychological change from fear to optimism and a 35% increase in the price of BNB.

Toncoin may follow the same psychological trajectory. At first, Durov’s arrest may be interpreted as a serious warning sign, causing traders to sell their positions and cause substantial falls.

But traders may begin to see the decline as a chance to buy the fear if the market eventually views the arrest as a singular incident that doesn’t really damage the Toncoin ecosystem.

The rising channel support causes Toncoin bounces

Technically speaking, as can be observed in the daily chart, TON trades within a clearly defined ascending channel range.

The bottom trendline of this channel, which has provided solid support for the TON/USDT pair since its creation earlier this year, was breached by the pair.

Furthermore, on August 25, the daily relative strength index (RSI) for TON was 37.54, which is close to its oversold threshold of 30, which usually signals a consolidation or rebound.

At now, the ascending channel’s top trendline is in the vicinity of $8.50. A move in the direction of this level would indicate a gain of almost 50% and would be consistent with the positive momentum indicated by the RSI.

Increasing rates of funding and OI indicate a confident market

The data from the Toncoin futures market also shows that traders’ confidence is rising. TON’s open interest (OI) increased to $303.62 million following Durov’s arrest, the highest level since July. Its funding rates per eight hours, meanwhile, increased to 0.0101%, a three-month high.

Growing OI implies that more capital is entering TON’s futures market, indicating heightened interest and speculation about the direction of prices. The positive financing rates suggest that traders are becoming more and more prepared to pay a higher price to maintain long positions in TON.

In addition, the higher funding rates suggest that traders are placing bets on price growth, which heightens the likelihood of a sudden spike upward. Should this momentum persist, TON’s price may rise quickly, maybe reaching the $8.50 objective and above.