Toncoin Sharpe Ratio Rising, Is TON Readying For $8?

Dalmas Ngetich

8 months ago

2 mins read

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Toncoin has cemented its position as a top 10 coin. However, considering the weakness across the board, TON, the native currency, has not been spared the hammering. Although losses might be contained, the coin is down nearly 36% from 2024 highs, finding strong support at around $4.5.

TON buyers are confident prices will recover, breaking above $6 in the coming sessions. However, its performance will be shaped by market sentiment and how Bitcoin reacts to local support and resistance lines.

TON Sharpe Ratio Rising

While there are external factors to consider, one analyst notes that the Toncoin Sharpe Ratio is rising and is now in the “low-risk zone.” Based on the analyst’s assessment, TON offers a favorable risk-reward balance for holders and investors.

Analysts use the Sharpe Ratio to gauge the risk-adjusted rate of return. The return is higher when it rises, even after factoring in existing risks.

Toncoin Sharpe Ratio | Source: @TeddyVision via CoinMarketCap

How prices perform depends on, among others, prevailing sentiment and adoption. As of mid-October, 77% of all TON traders expect prices to edge higher, looking at a CoinMarketCap poll.

The analyst added that the improvement is noticeably better than last year when the Sharpe Ratio was in a “high-risk” zone. It remains to be seen whether prices will recover in the coming sessions.

Toncoin Holders Exceed 90 Million: Will A Bitcoin Rally Spark Demand?

Over the past few trading months, TON has grown in prominence, cementing its position in the top 10. The rapid valuation follows the success of some of its protocols, including the tap-to-earn game, Hamster Kombat. At the same time, meme coin interest is taking up shape in Toncoin, looking at trading volume associated with Dogs.

According to on-chain data, the growth of Toncoin has seen its user base expand. As of early October, there were nearly 90 million TON holders, a 24X rise over the past year. With Toncoin dapps finding adoption, the more users choose to engage, buying TON, pushing prices even higher.

Toncoin price moving sideways on the daily chart | Source: TONUSDT on OKX, TradingView

If Bitcoin rises, breaking above $66,000 and $70,000 in the coming sessions, the probability of TON rising in tandem will be higher. As mentioned earlier, a decisive breakout above $6 could anchor the next leg up to June 2024 highs.

Feature image from iStock, chart from TradingView

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.

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