- CryptoQuant data reveals that as TON’s price increases, the Staking TVL ratio decreases, which means that investors are trading on the platform.
- As TON’s price surged in March 2024, staking interest declined, with funds moving to exchanges like CEX and DEX, boosting liquidity.
- Lower staking interest at price bottoms show that there is high exchange liquidity that will boost the demand and may rise the price of TON.
CryptoQuant, a leading provider of market intelligence, has recently shed light on a critical connection between TON’s price and staked token volume. The analysis reveals a consistent pattern,in TON, as the price of TON increases, the staking TVL ratio is seen to decrease. This implies that when prices rise, many investors pull out their staked tokens and channel the tokens to other trade opportunities across other trading platforms.
Exchanges Boost TON Price
This pattern was noticed in March 2024 when the price of cryptocurrency hit new highs. With price rising, the Staking TVL ratio sharply decreased, an indication of weak inflows of fresh capital in staking. At the same time, money entered centralized exchanges (CEX) and decentralized exchanges (DEX) like Ston.FI and Dedust. This change in capital led to an increase in TVL in these exchange categories and consequently the price was also driven up.
The Staking TVL ratio has declined, which is consistent with what seems to be a local bottom in the token price. This behavior goes against the common sense as staking interest declines at the time when the price hits the bottom. When funds are transferred from the staking to exchange, the increased liquidity of TON tokens naturally contributes to higher volumes and therefore higher prices.
Staking Vs. Market Flexibility
This pattern can be attributed to the demand for liquidity to a large extent. Normally, when investors want to redeem their tokens from staking, they transfer them to exchanges for quick trades. This causes the number of TON tokens on the markets to grow, which, in its turn, will lead to the increase in the demand and the price.
Staking relates to passive income, while it is good for long-term returns, it ties up tokens. When markets are highly volatile or when new opportunities appear on the market, investors may want to be able to use their tokens freely without having to stake them on the platform.
Staking TVL ratio has now become a way to measure the market sentiment. When the ratio decreases, investors pay much attention to such parameters as liquidity and trading activity instead of staking. This shift frequently culminates to the probable price surge likely due to the increased demand of the token. In this way, investors will be able to get a clue about the possibility of changes in the price and market trend of TON in the future.
The Staking TVL ratio is an incredible tool for gauging the attitude of investors in the market. The tendency of staking interest reducing as the price rises proves that liquidity is a significant factor influencing the TON market.
