In 2024, The Open Network (TON) was touted as one of the fastest-growing blockchains. However, just a few months ago, it reached an impressive milestone of 100 million wallets, thanks to its integration with the Telegram messaging app.
A Rapid Rise and Subsequent Decline
The rapid growth of TON can be attributed to its distribution through Telegram’s Mini Apps and games. Animoca Brands chairman Yat Siu highlighted the significance of this partnership:
"We were unable to find the kind of distribution outlets until Telegram came along and opened up their ecosystem."
The ease of access, with Mini Apps and a wallet directly integrated into Telegram, made it easy for users to engage with the blockchain.
However, excitement has since faded. Network activity has dropped sharply, and prices of TON-based tokens have plummeted. The initial surge in users, many of whom were attracted by airdrops from games like Hamster Kombat and Notcoin, has led to a drop-off.
The Impact of Airdrops and Overinflated Valuation
Cointelegraph market analyst Marcel Pechman commented on the issue:
"If you give stuff for free, nobody will value it,"
Many users cashed out immediately after receiving free tokens, which has led to a decline in interest.
Another concern is the overinflated valuation of TON last summer. Blockworks head of research Ryan Connor pointed out:
"TON was trading at a $40-billion valuation, greater than the Nasdaq, greater than Coinbase — that just seemed incorrect,"
As the market cooled, selling pressure from early investors and game users caused the price of the token to fall.
Huge Potential Beyond the Downturn
Despite the downturn, analysts agree that TON’s future still holds huge potential. The onboarding of millions of new users through the TON wallet remains a significant advantage, providing access to the network and opening the door to future use cases for Telegram users.
Pantera Capital partner Ryan Barney mentioned some potential use cases:
"They’ve already been educated on what crypto is. What are the applications we can build for them from their wallet?"
Barney pointed out advertising, social commerce, and payments as some of the potential use cases that could be explored further.
A New Era for TON?
Despite the challenges faced by TON in recent months, its future still holds promise. The integration with Telegram has provided a massive user base, which can be leveraged to build new applications and services.
The full video on this topic is available on our YouTube channel, where analysts discuss TON’s potential beyond this year’s hype. Don’t forget to subscribe for more in-depth analysis!
Why TON Still Holds Potential
While the recent downturn has been significant, TON still holds a unique position in the blockchain space. The integration with Telegram and the massive user base it provides are significant advantages that can be leveraged to build new applications and services.
Analysts agree that TON’s future is not solely dependent on its current market performance but also on its potential use cases and applications. With the right strategy and execution, TON could still achieve significant growth in the years to come.
Key Takeaways
- The rapid rise of TON was largely due to its integration with Telegram’s Mini Apps and games.
- Network activity has dropped sharply, and prices of TON-based tokens have plummeted.
- Analysts agree that TON’s future still holds huge potential despite the downturn.
By understanding the challenges faced by TON and its unique position in the blockchain space, we can better appreciate its potential for growth and development.
