Following last week’s controversial arrest of Telegram CEO Pavel Durov, Toncoin (TON) has been in a bearish period. The asset fell 17% in the last seven days and has dropped 6% in the last 24 hours. TON’s market cap has also suffered from the recent news, dropping from an ATH of $13.96 billion to $11.84 billion at press time.
The apprehension of Durov last weekend drove a massive decline for Toncoin. With the situation still unfolding, there is no certainty regarding TON’s position. Here’s a breakdown of the multiple catalysts behind Toncoin’s fall.
Why is Toncoin (TON) Down Today?
Toncoin has had an interesting 2024 so far. The crypto token, connected to the Telegram app, surged at points. Yet, that changed in late August. Specifically, the arrest of the app’s CEO, Pavel Durov, forced a stark decline in its overall value. Now, it is seeking to find a way back to relevance.
TON has been on a slow decline since the end of August for a multitude of reasons. While the primary one is Durov’s arrest and accusations, the overall market’s performance also plays a part. Bitcoin in the same period has fallen under $60,000, dropping 2% in the last week. As bitcoin is the “king coin” in crypto, it often dictates the path for other major coins. Despite TON’s ability to persevere in early August, the token is also a follower of BTC.
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One of the potential repercussions of TON’s recent plummet could be the asset falling out of the top 10 cryptocurrencies by market cap. As mentioned previously, Toncoin’s market cap is also on the decline. On the flip side, Cardano ADA, which was surpassed by TON in August, is catching back up. The gap between the two assets in market capitalization is just under $200M, after being nearly $1B just a week ago.
There is potential for TON to rebound this month, with some price predictions still bullish. According to data from Changelly, analysts predict that Toncoin might hit above $7 in September. The estimated average TON for September 2024 is close to $6.89, however, the asset is far below that mark, at sub-$5. A major update on the TON network would likely be needed to bring the asset back up to speed.