The Open Network (TON), a blockchain initially developed by Telegram, has been making waves in the crypto space. Boasting a massive user base inherited from Telegram’s 900 million active users, TON has quickly become a top-ten contender in terms of total value locked (TVL), surpassing established players like Optimism.
This rapid rise is fueled by several exciting developments. Firstly, a $20 million TON ecosystem fund launched by Bitget and Foresight Ventures promises to nurture new projects and applications built on TON. Secondly, the upcoming TON applications chain, powered by Polygon technology, will offer compatibility with the Ethereum Virtual Machine (EVM), making it easier for developers to bring their DApps to TON.
Furthermore, the TON Foundation’s recent partnerships with 1inch, Sign, and OKX highlight growing institutional interest. Their Web3 startup accelerator, Triangle, focuses on creating play-to-earn games, capitalizing on the success of Telegram’s Notcoin game. Additionally, OKX’s integration with TON allows users to manage assets directly through their Web3 wallet.
The most recent buzz surrounds the Teleport Bitcoin bridge, enabling seamless integration of Bitcoin (BTC) with TON’s DeFi ecosystem. This bridge, secured by a trustless architecture, opens exciting possibilities for decentralized exchanges (DEXs) and lending platforms on TON.
However, a closer look reveals some challenges for TON. While DeDust and Ston Fi, TON’s leading DEXs, boast significant TVL, recent data suggests declining volumes. User growth seems to be driven primarily by airdrops for new mini-games, raising concerns about long-term sustainability.
Also Read: Toncoin (TON) Unfazed by Market Jitters (Up 300% YTD) – Will Ethereum ETFs Spark a Rally?
Airdrops for games like CatizenAI and Yescoin have undoubtedly boosted unique active addresses, but established DeFi apps like DeDust saw a 19% drop in weekly users. Similarly, token allocation strategies for new projects like Pixelverse have drawn criticism. The focus on rewarding social media connections and the lack of vesting information raise concerns about potential sell-off by influencers and bots.
While TON itself cannot directly control these projects, the network’s success hinges on a healthy DApp ecosystem. The way coin handles token launches and airdrops will be crucial in attracting and retaining users. While TON’s potential is undeniable, determining the long-term viability of these trends will depend on the network’s ability to foster a sustainable and user-centric ecosystem.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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