Towns Protocol (TOWNS) is an open protocol based on blockchain designed for creating decentralized real-time messaging applications. The protocol is built on an EVM-compatible L2 chain (based on Base), allowing communities to build, own, and manage their digital "town squares." TOWNS is positioned as infrastructure for communications in Web3, emphasizing decentralization, where users can create chat groups, communities, and communication applications. Key features:
- Community building: Users can create decentralized chats, forums, and social networks with full control over their data.
- Integration: Support for applications such as Towns.xyz (chat application) and SendItTech (messaging technologies).
- Token utility: TOWNS is used for gas (transaction) payments, staking, and governance in the ecosystem. The token also serves to create liquidity and rewards.
The platform raised investments from Polychain Capital, YZi Labs (ex-Binance Labs), Dragonfly Capital, with a valuation of $87.5 million. TVL: ~$400–$600 million, 1.4 million active accounts. TOWNS is traded on Binance, Coinbase, KuCoin, OKX, Bybit, MEXC (40 exchanges, 52 markets). Total issuance: 1 billion TOWNS, in circulation ~270–294 million (27–29%).
- Price (August 10, 2025): ~$0.0332–$0.034 (CoinMarketCap, Coinbase).
- Market capitalization: ~$33.2–$34 million (rank #600–700).
- Trading volume (24h): ~$1–$2 million, change -20% to +10%.
- News:
- Launch: Protocol launched in 2024, with integration into Towns.xyz and SendItTech applications.
- Partnerships: Solana Foundation, AethirEco for AI communications (June 2025).
- Campaigns: Binance Simple Earn with 12% APY (June–July 2025).
- Negative: 30% drop after airdrop, cyberattack (July 2025).
- Bullish sentiment: 60–70% of posts on X are optimistic (@TownsProtocol).
### Technical analysis
- Current situation: TOWNS price has dropped 60% from ATH ($0.08, early 2025) and is trading at $0.0332–$0.034, with a change of -2% to +3% over 24 hours and -10% over 7 days. A descending channel is visible on the daily chart, support at $0.03, resistance at $0.04. RSI is neutral, a bounce is possible.
- Key levels:
- Support: $0.03–$0.032 (50-day SMA).
- Resistance: $0.04, then $0.05.
- Indicators:
- RSI (daily): ~45, neutral zone.
- MACD: Neutral, histogram narrowing.
- SMA: Price below 50-day ($0.035) and 200-day ($0.04).
- Volumes: $1–$2 million, a decrease of 20%.
- Chart: Testing $0.0332 in a descending channel. A breakout above $0.04 could raise the price to $0.05; a break below $0.03 would strengthen the drop to $0.025. Use 1H/4H timeframes. Check TradingView (TOWNS/USDT).
### Fundamental factors
- Positive:
- Ecosystem: TVL $400–$600 million, integrations with Base, Solana, Towns.xyz applications.
- Partnerships: Solana Foundation, AethirEco, YZi Labs.
- Innovations: Decentralized communication, real-time chats.
- Bullish sentiment: 60–70% of posts on X are optimistic (@TownsProtocol).
- Risks:
- Volatility: 30% drop after airdrop, cyberattack (July 2025).
- Competition: Telegram (TON), Discord, Signal in messengers.
- Tokenomics: 270 million in circulation out of 1 billion, selling pressure likely.
- Low liquidity: Volumes ($1–$2 million) below top tokens.
## Recommendations
- For traders: Buy when holding $0.032 (target $0.04–$0.05, stop-loss $0.03). Sell on break below $0.03 (target $0.025). Use 1H/4H timeframes, monitor volumes and news on integrations.
- For investors: Growth potential is linked to Web3 communication, but volatility and competition require caution. Watch for news on TVL and new applications.
- Monitoring: Follow X (@TownsProtocol, @CryptoMichNL) and TradingView (TOWNS/USDT). Check CoinGecko, CoinMarketCap, Binance Square.