In a milestone achievement, Toncoin (TON) has witnessed its USDT holdings soar past $1 billion after a massive 670% increase over the last six months. This spike places Toncoin’s blockchain in the top 10 networks for stablecoin dominance, just behind Ethereum-based Optimism. Analysts attribute this surge to competitive transaction fees on the Toncoin network and the rising popularity of USDT, which has found a cost-effective and fast processing home on TON.

Fee Reduction Fuels TON’s Growth

Source: CryptoQuant

CryptoQuant analyst Burak Kesmeci suggests Toncoin’s affordability and stablecoin-friendly environment are major drivers of growth. TON’s average transfer fee dropped by 42% from $0.061 to $0.035, positioning it as a competitive alternative for high-volume stablecoin transactions. Kesmeci anticipates that a bull market could see USDT’s supply expand from its current $120 billion to $200 billion, potentially pushing further adoption of networks like TON.

Price Struggles Below Resistance

Source: CryptoQuant

TON’s price saw an 80% rise from May to June, mirroring USDT growth. However, its value faced downward pressure in August due to Telegram founder’s legal issues and market-wide altcoin struggles. Currently, TON remains below a critical trendline resistance, with on-balance volume (OBV) indicating weak market demand. For a shift in market structure, TON must break past the $5 level, which could strengthen its price outlook.

Source: TONUSDT, TradingView

Mixed Market Sentiment for TON’s Future

While 53% of Binance’s top traders have taken net-long positions on TON, indicating modest optimism, the altcoin’s low daily active addresses reflect limited retail interest. Whale activity has, however, increased recently as these major players appear to be acquiring TON at lower prices. As whale accumulation rises, some of TON’s sell-side pressure may be absorbed, though this may not be enough to boost TON’s price significantly.