Toncoin (TON) is the native coin of The Open Network, a layer 1 blockchain initially developed by the Telegram messaging app. The TON ecosystem is primarily driven by Telegram’s 900 million active users.
Despite being relatively new to the decentralized application (DApp) ecosystem, the TON network has surpassed Optimism to become the 10th largest blockchain in terms of total value locked (TVL).
Future plans include a Bitcoin bridge and EVM compatibility.
On June 26, Bitget cryptocurrency exchange and Singapore-based investment firm Foresight Ventures announced the TON Ecosystem Fund, a $20 million fund to support early-stage projects and TON-based applications. Previously, the exchange had released an official Telegram signal trading recommendation bot, allowing group owners to integrate this feature for free.
Another factor contributing to the success of TON is the launch of the TON Application Chain, a layer 2 network on top of the TON blockchain. Announced on July 9 and supported by The Open Platform, the project leverages Polygon’s technology and is compatible with the Ethereum Virtual Machine (EVM), making it easier for developers to port their DApps to the new TON layer 2 solution.
The TON Foundation has also launched a Web3 startup accelerator called Triangle in partnership with 1inch and Sign. Announced on July 10, the initiative focuses on play-to-earn mini-games, following the successful launch of the Telegram-based game Notcoin. Additionally, OKX exchange announced on July 17 that it is integrating the TON network into its standalone Web3 wallet, allowing users to manage and exchange assets using Toncoin’s blockchain.
Recently, on July 18, the TON Foundation announced the Teleport Bitcoin (BTC) Bridge, which allows integration with TON ecosystem DApps, including decentralized exchanges (DEXs) and lending platforms. The blockchain bridge facilitates the transfer of tokens or data between different networks. To secure this bridge, the TON Network uses measures such as a trustless architecture and a “simplified payment verification client.”
Declining Volume and Airdrop Fever on the TON Network
In terms of TVL (Total Value Locked), the most successful decentralized applications (DApps) on the TON network are decentralized exchanges DeDust and Ston Fi, with $383 million and $301 million in deposits, respectively. While seemingly successful, a closer look at network activity reveals that some of the top DApps are struggling to maintain transaction volume, with user growth being driven primarily by a handful of airdrops.
In the week ending July 19, the two largest TON Network DApps saw a significant decline in activity. DeDust saw a 63% decrease in volume, while Ston Fi saw a 38% decrease in revenue. The increase in unique active addresses, a proxy for the number of users participating in the network’s DApps, was largely driven by anticipation of airdrops for minigames including CatizenAI and Yescoin.
Beyond the excitement generated by newly launched DApps targeting the play-to-earn market, decentralized finance applications like DeDust have seen a 19% decrease in weekly users, while Ston Fi has only seen a 4% increase in active addresses over the same period. There have also been criticisms of token allocation from recently launched projects, including Pixelverse.
Related: Telegram to launch mini app store by the end of July – Pavel Durov
User MB complained about how the Pixelverse token launch on Social Network X incentivized bots by rewarding users for simply creating an account and connecting to the social network. The analysis also found that while there was a lack of attribution information, significant allocations were given to influencers (KOLs), which further increased the pressure to sell.
While The Open Network does not directly influence projects launched on the blockchain, demand for TON is largely driven by the growth of the DApps ecosystem. This growth is directly influenced by how token launches are managed on the TON network. Given that this ecosystem is still in its early stages, it is premature to judge the sustainability of these airdrops and token launches.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.