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TON Network recently witnessed a massive surge in its financial and user activity. While Total Value Locked (TVL) drastically dropped by 72%, from $773 million in July 2024 to $215 million in February 2025, staking activities have skyrocketed. About 29% of the entire Toncoin supply—about 727.1 million TON—is currently staked, providing an estimated 4.71% annual reward rate.
This trend is indicative of a more strategic move by investors toward less risky, more rewarding options rather than riskier DeFi plays. Moreover, active addresses have also increased significantly, corroborating with the user activity of the TON ecosystem. This boost in participation indicates continued confidence and trust in TON’s infrastructure and may support long-term network stability and value growth.
A Deeper Look Into TVL Decline
One such example is the Open Network (TON), which saw its TVL fall by more than 72%, from $773 million in July 2024 to $215 million in February 2025. This drop could suggest lower network activity or large fund withdrawals from decentralized finance (DeFi) protocols. Nonetheless, liquid staking still accounts for a significant slice of TON’s TVL, indicating continued investor appetite for staking primitives. This is in line with the overall DeFi ecosystem, where liquid staking is on the rise, representing more than $50 billion in combined total value locked (TVL) in 212 protocols.
Staking Participation
While the TVL is declining, interest in staking within the TON network has grown. This metric, known as the Staking TVL Ratio, indicates the amount of TVL dedicated to liquid staking and staking pools and has been reaching new heights. This trend indicates that investors are now more focused on earning rewards from staking opportunities and perhaps shifting away from higher-risk DeFi investments. Such a move might minimize volatility and result in a smoother price action of Toncoin (TON)
Are Exchange Inflows Speculative or a Sign of Stability?
Toncoin (TON) exchange netflows skyrocketed in mid-February 2025, reaching a 357% all-time high of inflows as its price hit a peak. This spike is probably a sign of increased speculation or reactions to particular events in the market. After this influx, net flows have calmed down, possibly showing that the market has absorbed the early shock and is entering a state of consolidation. In fact, some all-time highs, such as $3.85 on February 14, 2025, happened in this timeframe.
Active Addresses
Nevertheless, the number of active addresses on the TON network continues to grow. The total number of addresses containing a balance has also been rising from late 2024 into 2025 along with the uptick in staking participation. This uptick in active users on the TON blockchain indicates a healthier network, which might mean an increased demand for TON, leading to a potential price hike in the future.
Investor Sentiment
Although staking activities and active addresses are increasing, TON investors are suffering losses. According to data, around 96% of TON token holders are in a loss position, and only about 4% are profiting. As outlined, this could potentially be seen as a downside of the TON ecosystem, where more and more people are buying into the system to buy goods and services without necessarily getting a return on investment.
The Transition Ahead
During this time, the TON network is transitioning from decreasing total value locked (TVL) to more participants staking and increased active user activity. These tendencies indicate an inclination among participants toward more stable investment strategies. But challenges remain, especially around investor profitability, and the mass adoption of the staking networks can lead to a more robust ecosystem in the future.
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Frequently Asked Questions (FAQs)
How come the locked value of this blockchain is depreciating?
This is the result of reducing activity, fund withdrawals, and investors’ shift to staking, which provides more predictable rewards and long-term stability.
Is staking growing even in the face of the downturn?
Indeed, growing numbers are staking their assets, wanting trustworthy returns. This dramatically lowers network volatility and greatly improves security, with nearly 29% of the supply currently being staked.
What is the cause of the recent spike in transactions?
The rise shows speculation or reactions to major events. Thereafter, transactions normalized, which indicated market absorption and potentially a phase of price consolidation.
Will the asset’s value recover?
For recovery to happen, there needs to be investor confidence, participation in staking, and demand in general. Such increased engagement and reduced pressure from speculation in the markets, increasing prices, help provide stability and growth in the long term.
Glossary of Key Terms
TVL (Total Value Locked): The value of all assets that are currently being held within a blockchain’s decentralized finance (DeFi) ecosystem: This includes everything from liquidity pools to lending platforms and staking protocols.
Staking: The act of locking up a cryptocurrency in a network in order to support the operations of the blockchain network (typically in return for rewards), effectively reducing circulating supply and thus lowering market volatility.
Netflows: The amount of incoming vs outgoing assets on exchanges, acting as a sentiment indicator for investors (positive netflows indicate buying pressure, negative netflows indicate selling pressure).
Liquid Staking: A process where users can stake their assets (e.g., Ethereum) into a scheme to earn rewards; however, if they want to use their tokens elsewhere, they can trade the liquid token for use in the markets.
Consolidation Phase: A common market condition that occurs when an asset’s price stabilizes after rapid price fluctuations and often precedes a breakout in a major direction or further price movement.
Active Addresses: The total number of wallets on the blockchain that have interacted with one another over a set period of time, representing the adoption of the network, usage trends during that time frame, and demand for the potential future price of an asset.
Market Speculation: Investors acting on expected price movement rather than inherent value, often leading to short-term volatility for cryptocurrencies and other financial assets.
Decentralized Finance (DeFi): A financial system that operates on the blockchain and is free of intermediaries, providing services like lending, borrowing, and yield farming via smart contracts.
