The TON (The Open Network) is demonstrating a high rate of development as a result of its high throughput and good performance on the market. In a recent X post, analytical platform CryptoQuant shows, that TON’s high throughput capacity has allowed the network to keep the positive dynamics in the market, with the indicators pointing to its further improvement.
The TON network has been on the up since August 2021 and this has been largely due to its partnership with Telegram, the messaging app. This partnership has boosted the application of the TON blockchain and has made it one of the most popular and well-established platforms in the crypto world and unique from other blockchains.
The analysis indicates that TON has a significant gap between its market capitalization and circulating supply. This could mean that a large proportion of token balance is either locked or being used for long-term investment. The low liquidity is an indication of the tokens that are on offer in the market and is an indication of the investors’ confidence in the network in the future. The distribution and ownership of these tokens in the TON network shall be understood in the context of the hybrid model of monetary transfer.
TON’s Circulating Supply Impact
Although there is the discrepancy between the circulating supply and market capitalization, there is a clear connection. This means that circulating tokens play a vital role in the valuation of the market.TON transforms token supply to the actual market value, which is a good sign for its investors and developers
The analysis also reveals the existence of the speculative behaviors in the market by analyzing the correlation between the market capitalization and price. If these two metrics are not equal, then it means that there could be speculative trading, which makes the price of the token to be affected by other parameters. At the same time, the relationship between the market capitalization and price points to a more stable and rational market currently seen with TON.
The platform network’s further expansion potential, together with stable market results and close cooperation with Telegram, is promising. When the network would grow and gain more popularity, the hybrid model of the economy and the relations between the market capitalization and the token circulation would be also significant.
TON has shown great potential in terms of transaction processing speed and is gradually gaining market share; thus, the platform is expected to continue its further development and integration into the crypto community in the next few months.
