TON Faces Deleveraging as Retail Investors Exit, Opening Accumulation Opportunity

The Open Network is reportedly going through a huge deleveraging. As per a CryptoQuant analyst going by “joaowedson,” the currently rising deleveraging process of The Open Network (TON) displays a growing reluctance among the investors. The analyst discussed this decline in a latest report.

Deleveraging in TON: A Sign of Opportunity?

“This kind of dynamic can mark the beginning of a recovery phase and a redistribution of supply, potentially paving the way for a future price increase.” – By @joao_wedson

Full analysis 👇https://t.co/2NMb1lUT9W pic.twitter.com/N3f37gEG74

— CryptoQuant.com (@cryptoquant_com) February 1, 2025

TON’s TVL Drops, Highlighting Deleveraging Process Amid Heightened Retail Exodus

The CryptoQuant analyst asserted that the ongoing deleveraging procedure of TON has triggered speculations about potential implications. The on-chain data reveals that TON’s total value locked throughout centralized exchanges, decentralized exchanges, options, and derivatives has significantly plunged. This large-scale deleveraging underscores the liquidation of positions by a great number of investors. Although it appears a bearish indication, the historical data points out that such developments often provide latest opportunities for bigger investors.

Deleveraging takes place when investors decrease borrowed funding in the positions thereof. This leads to a reduction in the overall market activity as well as likely price declines. This often comes as a response to the pressures created by the macroeconomic conditions, crypto traders’ risk management, and unsupportive market sentiment.

Overall Market Scenario Offers Accumulation Opportunity for Big Investors

In the case of TON, the recent slump in the leveraged positions highlights the potential capitulation by the retail investors to leave the market. This results in a supply redistribution. Nevertheless, the present scenario can offer a perfect accumulation opportunity for long-term crypto investors. In line with the historical data, the deleveraging phases have served as shifting points in major crypto cycles. In this respect, several large holders and institutional players have been entering during such periods.

Staking TVL Ratio Grows, Signifying Commencement of Likely Recovery

According to the CryptoQuant analyst, a great amount of the entire TON community even now holds a resilient conviction in its future progress. Hence, irrespective of this retail exit, the Staking TVL Ratio has begun to surge again. This development suggests the start of a potential recovery phase and supply redistribution. Therefore, this may lead to a price spike in the future.

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