Cryptocurrency analytics firm CryptoQuant has turned its focus to The Open Network (TON) in its latest review.
According to the report, TON experienced a sharp decline in Total Value Locked (TVL) across decentralized exchanges (DEXs), centralized exchanges (CEXs), derivatives, and options markets, indicating a wave of investors exiting positions, liquidating their holdings, and reducing overall exposure to the asset.
While such a pullback usually signals capitulation by investors, CryptoQuant suggests that it could also be used as a buying opportunity for whales. Historically, large investors tend to accumulate assets when individual sentiment is at its lowest, paving the way for a future price recovery.
Further supporting this thesis, the Staking TVL Ratio (which measures the share of total TVL allocated to staking) has started to rise again. This rise suggests that despite the sell-off in speculative markets, a significant portion of investors still have long-term confidence in TON and are choosing to stake their tokens rather than sell them.
CryptoQuant’s analysis suggests that this deleveraging pattern and subsequent renewed staking activity could signal the beginning of a recovery phase.
*This is not investment advice.
