The crypto market took a nosedive. But Toncoin (TON) managed to keep its head above water.
The TON blockchain restarted after a five-hour outage. It had been down due to the popularity of the DOGS airdrop. This airdrop was part of a campaign to support Pavel Durov.
Durov's arrest sent shockwaves through the crypto world. The Telegram founder was nabbed by Russian authorities last week. They accused him of "undermining national security" through his messaging app. It's a charge that could see him behind bars for up to 20 years.
The crypto market's reaction was swift and brutal. Investors panicked, fearing increased government crackdowns on digital assets. TON, closely associated with Telegram, initially took a hit. But it's showing surprising resilience. Some speculate it's due to a "Streisand effect" - the arrest inadvertently boosting interest in TON.
TON's losses were less than 1%. Meanwhile, the broader market tanked. The CoinDesk 20 index plummeted over 6.5%.
Bitcoin led the market slide. It dropped 6%. This triggered a massive $300 million in crypto futures liquidations. It's the highest since August 5.
Other major coins followed suit. Ether, Solana, Cardano, and Dogecoin all fell more than 5%. XRP showed some resilience, dropping only 3.4%.
Ether futures saw the biggest hit. They racked up $102 million in liquidations. Bitcoin wasn't far behind at $96 million.
The dump coincided with outflows from U.S.-listed bitcoin ETFs. They saw over $127 million walk out the door on Tuesday. This ended an eight-day inflow streak.
Augustine Fan from SOFA chimed in. "Traders scrambled to buy downside protection," she said. "The underlying momentum remains poor."
AI tokens, which had been riding high on Nvidia hype, also took a beating. NEAR dropped 10%, while ICP fell 6.5%.
Katie Stockton from Fairlead Strategies weighed in. "Sentiment around AI has definitely shifted," she noted. She expects increased volatility ahead.
On a brighter note, Hong Kong's Hex Trust launched a staking partner program. It's a sign that institutional interest in crypto isn't dead yet.