TON stands out as the most promising avenue for onboarding the next billion users into the Web3 ecosystem. While most of us actively buy and sell in the spot market, the Web3 landscape is still in its infancy with a relatively small userbase. This is why the most bullish investment theses often focus on the potential for mass adoption.
Remember when Polygon formed ground-breaking partnerships with Flipkart and RobinHood? Or when Coinbase launched its layer 2 solution? And let’s not forget the real-world asset protocols such as Solana and Avalanche that are now bringing TradeFi giants into the fold.
Amid these exciting developments, TON (The Open Network) is emerging as the most credible contender driven by Telegram’s 800 million monthly active users (MAU). TON’s deep integration with this mainstream messaging app creates a user experience that’s both seamless and intuitive.
What is TON?
Originally conceived as a blockchain with the planned GRAM token, TON was the brainchild of Telegram founders Pavel and Nikolai Durov. The project made headlines in 2018 by raising $1.7 billion in an ICO. However, its momentum was abruptly halted in May 2020 following an SEC lawsuit, forcing the team to shut down the initiative. In August 2021, TON made a triumphant return, relaunching under the guidance of the TON Foundation with its new native token, Toncoin. Despite its turbulent past, TON has maintained a close affiliation with Telegram, leveraging the platform’s vast user base.
Currently, TON is a Proof-of-Stake (PoS) Layer-1 blockchain that’s making waves with its high throughput and scalability. Thanks to its unique “infinite sharded multichain” architecture, TON can process transactions in parallel, greatly enhancing efficiency and reducing latency. Its key differentiators are:
High Scalability: TON’s innovative sharded architecture is designed to handle massive transaction volumes without compromising on speed or security.
Low Transaction Costs: With minimal transaction fees, TON is perfect for a variety of use cases, including micropayments and decentralized applications.
Unique Virtual Machine (TVM): TON uses its own Virtual Machine and programming languages (FunC and Tact), offering more flexibility and customization compared to EVM-compatible chains.
Telegram Integration: Perhaps the most significant advantage of TON is its deep integration with Telegram’s ecosystem, providing a seamless onboarding experience for millions of potential users.
Source: Google
Let us decode some trends in this ecosystem and cover noteworthy tokens to track.
1) TVL and Tokenomics
Like ETH and SOL, Toncoin does not have a capped token supply. The current total supply of Toncoin is 5.1B with a 0.6% linear inflation rate. In terms of value accrual, Toncoin receives 50% of network fees from a deflationary token burn of gas fees paid. Based on data from the last 7 days, the daily burn rate of Toncoin is ~9,200.
After a long period of stagnation, TON’s total value locked (TVL) saw an explosive growth since late February 2024. While it is still relatively low compared to other major chains, it has grown over 3,019% year-to-date (YTD) to reach a TVL of approximately $421 million.
Source:DefiLlama
This growth was driven by two key factors:
The February 28 announcement of a 50% revenue-share program for Telegram channels, exclusively using Toncoin for payments and withdrawals.
The launch of 30M Toncoin incentives.
2) Growing user base and trade volumes
Since March 2024, we’ve observed a dramatic increase in trading volume, transforming the chain from dormant to highly active. The network has becoming a beehive of activity and has witnessed a 950% surge in volume.
Source: Token Terminal
In terms of daily active users, TON is hitting ~610,000 users (~4.9 million monthly active users), inching into the range of Ethereum and Bitcoin.
Source: Token Terminal
3) USDT stablecoin Integration
TON just made a big move that could change the way people use crypto! They’ve integrated USDT, the biggest stablecoin, directly into the Telegram wallet. This means that hundreds of millions of Telegram users can now send and receive stablecoins easily, quickly, and securely within the app they already use. It’s like sending a text message, but with money!
This is a huge deal for global adoption, especially in developing countries where traditional banking isn’t always available. Imagine sending money home to family with the speed and convenience of your phone, without the big fees of banks! This is a real-world use of crypto that can help people manage their money better, and TON is leading the way.
4) Naturally, it is backed by some big names
· Mirana Ventures acquired 8M Toncoins in March 2024
· Pantera Capital recently announced an investment in TON
· DWF Labs runs two TON validators and invested 10M in TON ecosystem
· Animoca is an investor in TON and also running one of its largest validators
· Yolo Investment invested 8M into TON
5) Trending Coins in the Ecosystem
· NOT: Notcoin (NOT) made its debut in November 2023 on Telegram as a closed beta. Initially positioned as a meme coin without a defined purpose other than viral potential, Notcoin swiftly garnered momentum. In 3 months, 35 million people has joined the Notcoin community. The token is up by 80% over the past week.
· HGPT: HyperGPT is a Web3 AI marketplace that uses blockchain to overcome challenges in traditional AI applications. The token is up 27% in the weekly chart.
· GRAM: The coin gained immediate attention from users due to its mining capabilities, becoming the first PoW (Proof of Work) token within the TON ecosystem. The price of GRAM has surged by 414,332% since its launch, rising from $0.000004102 to $0.017.
TON ecosystem coins, Source: Coingecko
Key Takeaway
TON had to encounter numerous technological and regulatory obstacles to reach its current position in the top 10 crypto asset lists. The chain and its ecosystem are now getting substantial attention from users, developers, and institutional investors alike. One of its standout advantages lies in its potential to onboard Telegram users into its ecosystem, a factor that demands serious consideration.
The recent integration of Tether is particularly noteworthy. The ability to seamlessly ping stablecoins across the globe via Telegram on mobile devices represents perhaps the most user-friendly and straightforward method to transfer value over the internet. This innovation is likely to see widespread adoption in the near future.
Toncoin (TON) has great potential for growth in this bull run. Buy in early, load your bags and watch the ecosystem grow!
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Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.
