The price of TON declined sharply this week following the news that Telegram's Founder and CEO, Pavel Durov, was arrested in France. TON's price dropped by 11% on August 26, closing at $5.12—the lowest level since May 1. TON, the native currency of The Open Network, had previously reached a record high of $8.17 on June 14.
However, the recent decline could present an attractive risk-reward scenario when compared to the network's Metcalfe valuation. At the current price of $5.52, TON is closer than ever to the lower Metcalfe price valuation band, which currently stands at $4.60. Meanwhile, the upper Metcalfe valuation price is $18.40.
The Metcalfe valuation bands are calculated based on the number of unique addresses (a proxy for users) active on the TON network. Notably, active addresses on the TON network reached a fresh all-time high of 1.93 million on August 28.
Written by CQ Julio
