On May 28, the price of the NOT token from the Web3 gaming project Notcoin surged by over 40%, nearly recovering from a significant post-listing drop. Concurrently, the total TVL in The Open Network (TON) reached $320.87 million.
ForkLog consulted experts on how recent ecosystem developments have influenced asset price dynamics.
NOT is retesting the $0.01 level, which it established during the pre-market phase but failed to maintain after trading began on major centralized exchanges on May 16. At that time, the token lost 65% of its value.
According to CoinGecko, NOT is currently trading at $0.008918. The weekly gain stands at 76.5%. At one point, the asset re-entered the top 100 projects by market capitalization, reaching $997.6 million.
What Drives Notcoin’s Growth?
The price increase of young cryptocurrency projects is often unpredictable, but retrospectively, contributing factors can be identified, says Anton Toroptsev, Marketing Director of Bitget in the CIS.
Late last week, the Notcoin team reinstated the ability to earn NOT through a mobile gaming app, now within specific missions. Currently, four missions are available, two of which are third-party games.
“Notcoin is adhering to its previously announced strategy — to become an infrastructure for young projects that can gain exposure and introduce their products to a broad community. After ending click-based mining on April 1, users missed a game where they could earn rewards without prior purchases or spending,” explains Toroptsev.
He also mentioned the possibility of staking NOT for additional rewards.
“Liquidity attraction is also aided by listings on major exchanges. However, with young cryptocurrencies like NOT, manipulation and speculation, which lead to sharp price swings, cannot be ruled out,” the expert added.
Immediately after the listing, “weak hands” sold off the freely received coin, but it took the market maker ten days to buy back most of the issuance, continues trader Vladimir Cohen.
“The 40% rise in NOT on May 27 and 28 indicates that the main volume of coins held by individuals was bought back. Probably 70-80%, if not more — otherwise, there was no reason to drive the price up so much. Although there were short liquidations, they were not significant,” he noted.
Notcoin is currently the flagship project of the TON ecosystem. According to Cohen, the systematic buyback without pullbacks, the price movement towards the $0.01 level, and a capitalization of $1 billion indicate a marketing campaign to attract new and retain early users. This includes various contests and activities to earn and receive airdrops of NOT and Toncoin (TON).
The trader believes that after each major distribution and the consequent large-scale sell-off on exchanges, both coins will lose value, only to rise again through artificial pumping. The Notcoin team is already promoting the HODL narrative for the coin on X, comparing it to Bitcoin.
Limited supply
Wide distribution
Still cheap— Notcoin Ø (@thenotcoin) May 25, 2024
“We are still in a bull market phase — meme coins are in charge. With the right approach, Notcoin can hold its ground and not fall to zero. It is evident that market making is working well, so the token will be pumped,” Cohen stated.
What Influences TON’s TVL?
According to DeFi Llama, as of May 28, the TVL of The Open Network ecosystem reached $320.8 million.
The TON Foundation is making maximum efforts to popularize projects based on its blockchain and, in particular, to promote Toncoin as a financial instrument.
“A limited-time promotion in Wallet allows users to deposit USDT at 50% annual interest in Toncoin for two months. Farming the coin on internal DEX offers 80-90%. Additionally, a large number of real TON blockchain users are being attracted through airdrops and games like Notcoin to create a financial token for the entire ecosystem,” said Vladimir Cohen.
Blum co-founder Gleb Kostarev also points to significant growth in The Open Network due to the entry of increasingly important market players.
“Recently, Tether began using USDT on the TON blockchain, and significant investments in the ecosystem were announced by Pantera Capital,” he noted.
Kostarev believes that the development of mini-applications plays a key role in integrating Telegram’s nearly billion-strong audience into the Web3 world.
“Notcoin’s trajectory of success is closely intertwined with progress in the TON ecosystem, making it a symbol of the transition to a new generation of digital economy and financial innovation,” the expert concluded.
According to CoinGecko, the current price of TON is $6.39.
Users have several options for claiming and withdrawing NOT.
The co-founder of Notcoin plans a large-scale token burn.