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- Toncoin is seeing a growth in its user base, with recent data showing a surge in TON holders, potentially allowing the network to surpass Ethereum in user adoption.
- Although the token has seen a notable increase in holders, profitability remains a concern, and the asset's market performance in the coming weeks will largely depend on its ability to overcome technical resistance levels.
Toncoin was launched in 2018 by the popular messaging app Telegram and has since seen its value and market adoption skyrocket on the open network. The significant increase in 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 growing user base, Toncoin's profitability, measured by the returns of investors who previously purchased, has been on the decline. While increased ownership suggests optimism and growing support, declining profitability suggests potential challenges in maintaining or increasing market value.
Can Toncoin surpass Ethereum (ETH)?
Toncoin (TON) has seen an increase in the number of unique wallets holding cryptocurrencies, now exceeding 100 million wallets, making it the 11th largest cryptocurrency by market capitalization. This surge in holders began at the beginning of the year when the number of wallets was just over 4 million, and reflects a nearly 25x increase in just a few months.
Between March 15th and October 17th, the number of TON holders jumped from about 7.12 million to nearly 108 million. According to Cryptoquant data, TON easily surpasses Ethereum in new user acquisition, with an estimated growth rate of around 500,000 holders daily.
Are Toncoin holders making a profit?
According to data from IntoTheBlock's Global In/Out of the Money chart, approximately 75.43 million addresses, or approximately 80.70% of all Toncoin holders, currently hold Toncoin at a loss. In contrast, only about 13.16 million addresses have 14% of all holders “in the money,” meaning they are actually making money. The remaining 5.22% holders have reached the break-even point and have not made any profits or losses on their investments.
The outlook is markedly different when we look at Ethereum, Bitcoin's second-best competitor in terms of technology, innovation, and use cases. According to the data, more than 67% of holders are profitable and only 29% are “out of the money.” This makes Ethereum more profitable for investors at the moment. Ethereum’s long track record and established position in the market has likely contributed to its stability, including recent updates made with “The Splurge.” As reported by CNF, this is Ethereum's latest roadmap release, which aims to increase scalability, strengthen security, and ensure transaction fees are optimized to maximize immunity against future threats. It is said that
Analyze Toncoin’s current market position
Toncoin has gained 0.38% in the past 24 hours and each unit is currently trading at $5.06. However, it is still below its 50-day moving average of $5.388, a key indicator used to assess market trends. This below-average trading suggests that Toncoin is in a medium-term bearish trend, as the price has not yet broken above this level, indicating sustained downward pressure in recent weeks.
Despite Ethereum facing criticism for underperforming compared to Bitcoin, the token was up 7% on Tuesday, nearly 50% behind its all-time high of $4,878. . Ethereum is trading around $2,640 after trading volume decreased by 4.28% in 24 hours to settle at $20.87 billion.
