Toncoin (TON) has recently experienced a decline in its Total Value Locked (TVL), signaling reduced network activity. However, contrary to this decline, staking participation has surged, suggesting a potential shift in investor behavior that could lead to a more stable and growth-oriented future for the blockchain.

Understanding the Decline in TVL

From mid-2024 to early 2025, Toncoin’s TVL has seen a noticeable drop. AMBCrypto’s analysis highlighted this decline, which may suggest a slowdown in decentralized finance (DeFi) participation or a reduction in overall network activity. A reduced TVL often reflects diminished activity in DeFi protocols, where users lock their assets to earn rewards, suggesting that investors may be pulling away from riskier investment strategies.

Despite the fall in TVL, there has been continued interest in Liquid Staking, a component of TON’s TVL that remains substantial. This trend indicates that while the total value locked has decreased, staking continues to attract investment. Liquid Staking, which allows investors to earn rewards without locking up assets for long periods, could be an appealing alternative to high-risk DeFi strategies, offering more stability and less volatility.

Shifting Toward Secure Yield and Less Volatility

The increase in the Staking TVL Ratio stands out as a key development. Even as the overall TVL dropped, the proportion of TON locked in Liquid Staking and Staking Pools has grown significantly. This suggests that investors are increasingly drawn to staking as a method of earning rewards with reduced exposure to market volatility.

The shift toward staking aligns with a growing preference for secure yields over more speculative, higher-risk DeFi opportunities. As more tokens are staked, there is less pressure to sell, potentially leading to price stability. This trend could also set the stage for future price appreciation, as tokens locked in staking pools reduce the circulating supply, while staking rewards accumulate.

Speculation Versus Stability

An important factor to consider is the spike in Netflows observed around mid-February 2025, coinciding with a price peak. A surge in exchange inflows during this time likely represents speculative activity, driving short-term price movements. Following this influx, Netflows stabilized, suggesting that the market absorbed the initial wave of investments, possibly signaling the start of a consolidation phase.

Once speculation subsides, the market could enter a period of stability. As the price settles and speculative activity decreases, TON could experience a more stable price environment that supports long-term growth. Such stabilization would provide a solid foundation for future value increases.

The Impact of Active Participation

A positive signal for Toncoin is the steady rise in active addresses, particularly among those holding a balance. This increase in activity, observed from late 2024 through 2025, corresponds with the rising staking participation. Active addresses are a key indicator of network health, and their growth suggests that more users are engaging with the Toncoin ecosystem.

This rise in network participation indicates a broader interest in TON, both from new users and existing holders. As more users take part in staking and other activities, the demand for Toncoin could increase, potentially pushing prices upward. The surge in active addresses is a promising sign for the long-term health and growth of the Toncoin network.

Conclusion: Stability and Growth Ahead for Toncoin

Despite a recent decline in TON’s TVL, the rise in staking activity and the increasing number of active addresses signal a shift toward greater stability and growth. Investors are moving away from high-risk DeFi strategies and focusing more on staking for secure yields. As this trend continues, Toncoin could experience more price stability and gradual long-term value growth. With increased network participation and a growing commitment to staking, the future looks promising for Toncoin as it shifts into a phase of sustained development.