The number of TON (The Open Network) token holders is expected to surpass holders of Ethereum, an analyst with CryptoQuant has said.
According to CryptoQuant community analyst Maarten, TON has recorded about 500,000 new users daily since last month, putting its present number around 112 million. On the other hand, Ethereum presently has about 137 million holders. If the trend continues uninterrupted, TON could equal Ethereum by December 20.
TON set to upstage Ethereum with its rapid rise in holders
The analyst, however, noted that this does not mean that it will surely happen. First, he believes that TON’s growth could suffer a slow growth. Also, if the trend drops by just one standard deviation, it means the theory of TON surpassing Ethereum will be delayed till February next year.
The holders of Ethereum have also been on a slow but steady rise. Although the growth is not quite visible presently, it could impact projections in the future. However, it is still likely that TON’s growth might not be affected by these and could surpass Ethereum anytime soon.
Market position and the declining Sharpe Ratio
TON’s Sharpe Ratio has been declining slightly. This is due to its lower volatility and reduced risk. A low ratio indicates that an asset’s volatility is declining and its risk-return profile is doing well.
With Bitcoin still moving in a narrow range, more drops are expected before a big shift in the crypto market. The risk reduction might signal good news for traders already holding the token, but it does not mean the asset is without any risk.
Meanwhile, TON is fighting the battle of its life against market forces. The bears have been keeping it down, trying to force it through the $5 key support level. If it is successful, TON could see a slight decline to $4.72 or $4.44.
Maarten claims that if that level breaks, the token could further slide down to $3.50. Similarly, a rebound in price could trigger more demand at a lower price. Investors will also watch if the asset moves above its moving average, which means the bulls are present.
On the other hand, Ethereum is seeing a huge amount of outflows. Coinbase recorded the second-largest ETH outflow in three months after 543,000 ETH worth over $1.2 billion left the exchange. The transaction could be institutions moving tokens or an internal transfer by the exchange. There is no confirmation yet, but an institutional transaction might signal more interest in the asset.