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.
(Source: CoinMarketCap)
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.
However, as measured by DAUs, Telegram's distribution is overstated.
Ests for DAUs come in around 55-200m, and as a percentage of MAUs this is very low relative to competing applications.
This signals low penetration and a less monetizable userbase than the market appreciates. pic.twitter.com/wdZuKsplAD
— Blockworks Research (@blockworksres) June 27, 2024
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.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
