- TON hits a record high
- TON’s daily active users soar, overtaking Ether
- Why are TON active users rising?
- What is the impact on the ecosystem
TON (The Open Network) has risen around 14% this week, adding to 11% gains from last week and bringing the price to $8, a record high.
Toncoin has powered higher this week even though the broader crypto market has been under bearish pressure. Bitcoin is on track to drop over 3% across the week, while Ethereum is set to post losses of around 4.5% this week.
The broader crypto market struggled after the Federal Reserve lowered its rate cut forecasts. Now, The Fed forecasts interest rates will be cut just once in 2024, down from three cuts, which were expected only in March.
TON daily active users surge
TON has looked past the narrative, which has pulled many cryptocurrencies lower this week, and instead has risen firmly while seeing a big surge in the number of daily active users, which have topped those on Ether almost every day not only this week but also this month.
TON’s outperformance is impressive. According to data shared by Unchained on X, TON’S blockchain, supported by the popular messaging app Telegram, has seen its daily active addresses surpass those on Ethereum’s every day but one in June.
A report from Delfi Digital points to this growth being attributed to Telegram’s massive user base.
The report suggests that Telegram’s 900 million users are likely behind its rapid increase in users, helping increase network activity and adding buying pressure to the market. The extensive distribution and easy integration of Telegram users into the TON ecosystem have been key factors in its rapid increase. In effect, buying TON could be considered a bet on Telegram’s distribution.
The big question is whether this rapid growth is sustainable in the long term and whether TON can maintain its dominant position against other crypto giants like Ethereum.
Why is TON rising?
Several recent developments could explain TON’s sharp rise in network activity. For example, the integration of a stablecoin Tether on TON will have helped attract more users.
Meanwhile, on June 6th, the platform also launched Telegram Stars, which is an in-app currency for digital purposes. The crypto community has received the feature well with rapid adoption on IOS and Android devices.
Furthermore, telegram mini apps such as Hamster Kombat are also gaining popularity and attracting millions of daily users.
Impact on the ecosystem
The rise of crypto-related features on Telegram, such as mini apps and exchange bots, is helping to turn the platform into a hub for crypto enthusiasts. Telegram has arguably become one of the most sought-after cryptocurrency spaces. Developers and founders can also capitalise on the massive social community on the Telegram platform to introduce their initiatives.
TON’s impressive performance in recent weeks, thanks to Telegram’s enormous user base and ongoing innovations, has helped the price reach its highest level since inception as it brings $8 into focus.
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