Toncoin Whales Accumulate Over $342 Million in Past Week as TON Surges ahead of Dogecoin

• Whales have purchased more than 45 million TON tokens.
• Toncoin’s market cap is now approaching $20 billion and could soon be testing its all-time high of $8.19
• Analysts believe Telegram’s low daily/monthly active users suggest that Toncoin is overvalued.

Toncoin (TON) has overtaken Dogecoin (DOGE), as whales continue to accumulate millions of TON tokens.

Despite market uncertainty, TON is now the 8th largest cryptocurrency by market cap as the TON-based economy begins to take root on Telegram.

Toncoin Whales

On-chain data indicates that Toncoin whales have been very active lately, buying up 45 million TON tokens, or $342 million worth, in the past week.

Seemingly, major players in the space are betting big on Toncoin, which has allowed it to surpass Dogecoin’s market cap and take 8th position.

Naturally, these developments have had a positive impact on the TON price, which has performed particularly well despite bearish market conditions.

Toncoin Price (TON)

At the time of writing, TON is trading at $8.06, an increase of just over 6% in the past 24 hours. It is up 25% for the month overall, adding some $5 billion to its market cap since June 2, 2024.

It’s worth noting that Telegram boasts over 900 million users and a native crypto wallet, opening the doors to mass adoption of Web3 technologies. Thanks to this great reach, a lot of Toncoin’s success is attributed to viral play-to-earn (P2E) TON ecosystem games such as Notcoin (NOT) and Hamster Kombat.

That said, some analysts believe that this success is unsustainable, and momentum could wane in the near future. If anything, TON could be overvalued .

Overstated Success?

Some analysts believe that the market has overestimated Telegram’s distribution. Though the messaging app does have a significant global reach, the number of daily active users isn’t particularly high.

According to research from Blockworks, its daily average users range from 55-200 million, making its daily and monthly active user ratios much lower than Facebook, Twitter, and WeChat.

Furthermore, as per on-chain data platform Artemis , it seems the number of daily active TON wallet addresses is even lower. In May 2024, Toncoin briefly surpassed Ethereum in this metric, only to decline almost immediately afterward.

After achieving a momentary high of over 5 million daily active addresses, this figure now sits below 400k. Comparatively, NEAR, Solana (SOL), Sui (SUI), and Polygon (MATIC) have over 1 million daily active wallet addresses.

Further developments could attract a more consistent and regular user base to bolster TON’s position in the market, but it may not be enough to mitigate the impending price correction.