Toncoin is at risk as HMSTR, Catizen, Notcoin, and burn volume dive

Toncoin’s price continued its strong sell-off on Monday as most win-win tokens in its network collapsed and burn volume declined.

Toncoin (TON) is down 41% from this year’s high to $4.90. It has also fallen almost 30% since August 24, when its founder Pavel Durov was arrested in France.

The sale coincided with mixed news about its ecosystem. On the positive side, stablecoin volume in the ecosystem exceeded $1 billion for the first time.

Most of these coins are Tether (USDT), the industry’s largest stablecoin. The rise in stablecoins is a sign that the network is gaining traction among users as they are the primary currencies used in the blockchain industry.

Toncoin’s price therefore dropped due to some poor metrics in the ecosystem. For example, data from TonStat shows that the daily number of TON tokens burned has dropped sharply in recent days, falling to 6,373; This is well below the year-to-date high of 32,000.

More data shows network charges have fallen to their lowest levels in months. After peaking at 77,000 TON in September, fees have since fallen to just 12,746 TON, indicating reduced network activity.

Additional on-chain data reveals that the number of daily transactions continues to decline and is nearing its lowest point in the last six months. The number of active wallets also dropped sharply.

Toncoin active wallets | Source: Tonstat

Meanwhile, total assets locked on the TON Blockchain dropped to $375 million, according to DeFi Llama, making it the 20th largest chain in the industry. Just a few months ago it was among the top ten chains.

TON price also fell as investors watched the weak performance of some of the largest ecosystem tokens, such as Hamster Kombat (HMSTR), Notcoin (NOT), and Catizen, falling from their highs this year.

Toncoin death cross created Toncoin price chart | Source: TradingView

On the daily chart, the Toncoin token has fallen significantly over the past few months, entering a deep bear market. Additionally, a death cross occurred with the intersection of the 200-day and 50-day moving averages.

All oscillators, including the Relative Strength Index and MACD indicators, are pointing down. Therefore, the token will likely continue to decline as traders target key support at $4. This view will hold true if the token breaks below the key support level of $4.43, the low point on September 7.