- June’s market downturn has accelerated over the past week.
- Toncoin leapfrogs Dogecoin for the eighth spot on CMC amid the market slump.
- Market sentiment sinks in line with tumbling prices.
The cryptocurrency market has experienced a significant downturn since early June, with sell pressure building to trigger a 12% market cap dip over the past week. This sharp decline has wiped out a staggering $300 billion in valuation, pushing the overall market to a seven-week low of $2.24 trillion.
The ripple effect has been felt across the board, with nearly every top 100 token registering losses since last Monday. Amidst this sea of red, Toncoin has emerged as an unexpected victor, surpassing the popular memecoin Dogecoin to claim the eighth spot in the CoinMarketCap rankings.
Toncoin Overtakes Dogecoin
Toncoin has made significant strides in recent months, securing key partnerships and expanding its ecosystem. A major milestone was the integration of the USDT stablecoin onto the TON blockchain, enhancing its utility and appeal to users. Additionally, the rising popularity of projects like the Hamster Kombat Play-to-Earn game has contributed to the growing traction of the Toncoin ecosystem.
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This sustained momentum has been reflected in Toncoin’s steady climb up the cryptocurrency rankings. The token first broke into the top 10 projects by market cap in the week ending April 7. Shortly after, in the week ending April 21, Toncoin surpassed Cardano to claim the ninth spot.
The recent market turmoil has seen Toncoin demonstrate relative resilience compared to its peers. Despite losing 4.8% over the last 24 hours and falling to $7.34, Toncoin’s market cap stood firm at $18.03 billion at the time of writing.
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In contrast, Dogecoin experienced a steeper decline of 5.4%, dropping to $0.1179 with a market cap of $17.07 billion. This divergence in performance has allowed Toncoin to overtake Dogecoin, securing the eighth spot in the cryptocurrency rankings and further cementing its position as a rising force in the cryptocurrency space even as market conditions continue to deteriorate.
Market Sentiment Takes a Tumble
With the continued market decline, the Crypto Fear & Greed Index dropped to 51 on June 24, marking a seven-week low. This decline in sentiment aligns with the substantial losses experienced across the crypto landscape, indicating a shift towards a more cautious investor outlook.
Market sentiment has been on a downward trajectory since the Fear & Greed Index reached a local peak of 74 on June 18. Before this decline, the index had maintained a bullish stance, consistently registering above 70 for the preceding four weeks.
The Fear & Greed Index aggregates data from various sources including volatility metrics, market momentum indicators, and social media sentiment, and serves as a barometer for gauging overall market sentiment and potential future trends.
On the Flipside
- At current prices, Toncoin is approximately $8.5 billion behind seventh-place XRP in the market cap rankings.
- Crypto prices are volatile, making market cap rankings highly changeable.
Why This Matters
Dogecoin becomes the latest casualty of Toncoin’s seemingly unstoppable rise. The project’s momentum serves as a warning shot to rival layer 1 projects.
Toncoin’s growing metrics made it only a matter of time before overtaking Dogecoin:
Toncoin’s Surge Puts Meme King DOGE in Its Sights
Hamster Kombat sparks concerns from global governments:
TON’s Hamster Kombat Craze Raises Global Authority Concerns
