Expert Analysis Shows Potential Overvaluation of TON
An analyst from the data analytics platform CryptoQuant, Shiven Moodley, has pointed out that TON’s Adjusted Sharpe Ratio indicates potential overvaluation of the asset. The comparison of TON’s Adjusted Sharpe Ratio to its volatility shows that the 7-day volatility consistently exceeds the 30-day volatility over the past two and a half years.
- The Adjusted Sharpe Ratio calculates the excess return of an investment relative to its risk, considering additional factors that may impact the risk-adjusted return.
- Data analysis reveals that TON experiences more frequent and significant short-term price swings compared to its long-term movements, suggesting high sensitivity to short-term events.
- Volatility is attributed to TON’s speculative nature and the increasing number of Telegram users in DeFi and GameFi, leading to fundamental volatility.
Toncoin Price Analysis
Currently, Toncoin is trading at $7.38, showing a 3.36% decline in the last day. However, the token has seen a positive trend over larger time frames, with a 17.64% gain over the past seven days. TON’s daily trading volume has increased by 11.57% to around $402.12 million, and its market cap stands at $17.96 billion, ranking it as the ninth largest cryptocurrency.
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