TON’s Sharpe Ratio Enters Low-Risk Zone, Analysis Shows

TLDR

• Toncoin (TON) is now a top 10 cryptocurrency
• TON is down 36% from 2024 highs, finding support at $4.5
• The Toncoin Sharpe Ratio is rising, now in the “low-risk zone”
• 77% of TON traders expect prices to increase
• Toncoin holders have grown to nearly 90 million, a 24X increase in a year

Toncoin, the native currency of The Open Network (TON), has recently solidified its position as a top 10 cryptocurrency by market capitalization.

Despite facing downward pressure in line with the broader crypto market, TON has shown signs of resilience and potential for growth.

The cryptocurrency market has experienced a general downturn, and Toncoin has not been immune to this trend. TON’s price has declined by approximately 36% from its 2024 highs.

However, the coin has found strong support around the $4.5 mark, suggesting a potential base for future price movements.

One positive indicator for Toncoin is the improvement in its Sharpe Ratio, a measure used by analysts to evaluate the risk-adjusted rate of return for an asset.

According to recent analysis, TON’s Sharpe Ratio has entered what is described as the “low-risk zone.” This development represents a significant improvement from the previous year when the ratio was in the “high-risk” category.

The Sharpe Ratio is an important metric for investors as it helps gauge the potential return of an asset relative to its risk.

A rising Sharpe Ratio typically indicates a more favorable risk-reward balance, which could make TON more attractive to potential investors and traders.

Toncoin Price on CoinGecko

Market sentiment surrounding Toncoin appears to be largely positive. A poll conducted on CoinMarketCap revealed that 77% of TON traders expect the price to increase in the near future.

This optimistic outlook could potentially translate into increased buying pressure and support for the token’s value.

One of the most notable developments for Toncoin has been the substantial growth in its user base. On-chain data indicates that the number of TON holders has expanded dramatically, reaching nearly 90 million as of early October.

This represents a remarkable 24-fold increase over the past year, highlighting the growing adoption and interest in the Toncoin ecosystem.

The expansion of Toncoin’s user base can be attributed in part to the success of various protocols and applications built on the TON network.

For example, the tap-to-earn game Hamster Kombat has gained popularity among users. Additionally, there has been increasing interest in meme coins within the Toncoin ecosystem, as evidenced by rising trading volumes associated with dog-themed tokens.

As more users engage with Toncoin-based decentralized applications (dApps), the demand for TON tokens is likely to increase. This growing user activity could potentially drive up the price of TON in the future.

While Toncoin has its own fundamentals and ecosystem dynamics, it’s worth noting that its price movements may also be influenced by broader cryptocurrency market trends, particularly those of Bitcoin.

Some analysts suggest that if Bitcoin were to break above key resistance levels such as $66,000 and $70,000, it could have a positive impact on altcoins like TON.

Looking ahead, many TON supporters are eyeing the $6 price level as a significant resistance point. A decisive break above this level could potentially pave the way for further gains, with some optimistic projections pointing towards the highs seen in June 2024.