Fed rate cut of 25 basis points boosted TON by 9.8%

Fed rate cut of 25 basis points boosted TON by 9.8%

The Federal Reserve's 25 basis point rate cut in September 2024 created significant positive momentum for TON, which experienced a notable 9.8% increase following the announcement. This rate reduction reflected the Fed's response to inflation concerns and labor market pressures, fundamentally altering market dynamics across digital assets.

When the Fed lowers its benchmark interest rate, borrowing costs decrease substantially, making capital more accessible and affordable throughout the financial ecosystem. This environment typically redirects investor attention toward alternative assets, including cryptocurrencies, as traditional fixed-income investments become less attractive. TON's price response demonstrated how closely blockchain assets correlate with macroeconomic policy shifts.

The broader implications extended beyond immediate price appreciation. Lower interest rates typically encourage investors to seek yield opportunities in higher-risk, higher-reward sectors such as cryptocurrency. TON's position as a scalable blockchain platform processing millions of transactions per second positioned it favorably within this context. The correlation between monetary policy and TON's performance underscores how macroeconomic conditions directly influence cryptocurrency valuations and market sentiment.

3.4% inflation rate led to a 17.63% drop in TON price

TON's tokenomics structure reveals a critical relationship between inflation dynamics and price volatility. The blockchain maintains an annual inflation rate of approximately 0.55%, with daily minting of 88,137 TON tokens against 3.14 million TON burned, creating a deflationary pressure mechanism. However, supply growth through validator rewards continues to expand the circulating supply, currently at 2.446 billion TON out of a total supply of 5.148 billion TON.

The significant 17.63% price decline observed in late 2023 correlates directly with market sentiment regarding token inflation and supply dilution concerns. When investors perceive excessive token issuance outpacing demand absorption, selling pressure intensifies rapidly. During this period, trading volume surged to exceptional levels, indicating panic-driven liquidations as holders attempted to exit positions before further depreciation.

The relationship demonstrates that controlled inflation mechanisms require careful calibration. While staking rewards incentivize network participation and security through validator engagement, excessive token emission without corresponding demand growth triggers value dilution. TON's current 47.52% market cap to fully diluted valuation ratio suggests the market prices in ongoing inflation concerns. This dynamic underscores how tokenomics transparency directly influences investor confidence and price performance in blockchain ecosystems.

TON shows moderate correlation with S&P 500 in 2024-2025

TON Price Movement Analysis in Relation to Traditional Markets

During the 2024-2025 period, TON demonstrated a moderate correlation with the S&P 500, reflecting broader macroeconomic influences on both traditional equities and digital assets. This correlation pattern emerged as global markets navigated complex policy decisions surrounding tariffs, immigration, and fiscal pressures that affected investor sentiment across asset classes.

The convergence between TON's price action and S&P 500 dynamics became particularly evident when examining macroeconomic indicators. As the Federal Reserve's policy stance influenced Treasury yields and equity valuations, similar pressures affected cryptocurrency markets. Goldman Sachs projected the S&P 500 to reach 6,300 by year-end 2025, yet economic growth uncertainty created headwinds for risk assets including TON, which declined approximately 75.92% over the full year despite quarterly periods of recovery aligning with temporary equity market stabilization efforts.

FAQ

Is TON a good coin?

Yes, TON is a promising coin with strong partnerships, technological advantages, and growing adoption, making it a good long-term investment prospect.

Can Toncoin reach $100?

While ambitious, reaching $100 is possible in the long term. It would require significant adoption and market growth. Experts suggest this could happen beyond 2040, given favorable conditions and continued development.

What is the Toncoin?

Toncoin is the native cryptocurrency of The Open Network (TON), a blockchain designed for high scalability and low fees. It secures the network, rewards validators, and enables fast transactions.

How much is 1 Toncoin worth?

As of December 2025, 1 Toncoin is worth approximately $1.64, showing a steady increase in value over time.