TON Network Surpasses Optimism to Become the Tenth Largest Blockchain by TVL

Despite being relatively new to the decentralized applications (DApps) ecosystem, the TON Network has surpassed Optimism to become the tenth largest blockchain

The native coin of The Open Network, a layer-1 blockchain initially developed by the Telegram messaging app, is Toncoin (TON). With over 900 million active Telegram users, the TON ecosystem is largely driven by this massive user base.

Despite being a relatively new addition to the decentralized applications (DApps) ecosystem, the TON Network has quickly ascended to become the tenth largest blockchain by total value locked (TVL), surpassing Optimism in the rankings.

Upcoming plans include Bitcoin bridge and EVM compatibility

On June 26, Singapore-based investment firm Foresight Ventures and Bitget crypto exchange announced the launch of a $20 million TON ecosystem fund to support early-stage projects and TON-based applications. Earlier this year, the exchange also launched an official Telegram signal trading recommendation bot, enabling group owners to integrate this functionality free of charge.

Another significant development contributing to TON’s success is the upcoming launch of the TON applications chain, a layer-2 network built on top of the TON blockchain. This project, announced on July 9 and supported by The Open Platform, will utilize Polygon’s technology and feature compatibility with the Ethereum Virtual Machine (EVM). As a result, developers will be able to easily port DApps to the new TON layer-2 solution.

Additionally, the TON Foundation has partnered with 1inch and Sign to launch a Web3 startup accelerator called Triangle. This initiative, announced on July 10, will focus on play-to-earn mini-games, following the successful launch of the Telegram-based game Notcoin. On July 17, OKX exchange also announced the integration of the TON network into its standalone Web3 wallet, enabling users to manage and swap assets using Toncoin’s blockchain.

More recently, on July 18, the TON Foundation announced its Teleport Bitcoin BTC $66,454 bridge, which will allow integration with TON ecosystem DApps, including decentralized exchanges (DEX) and lending platforms. Blockchain bridges facilitate the transfer of tokens or data between different networks. To secure this bridge, the TON Network employs measures such as a trustless architecture and a “simplified payment verification client.”

BTC

$66,454

TON Network’s declining volumes and airdrop frenzy

Among the TON Network’s most successful DApps are the decentralized exchanges DeDust and Ston Fi, which boast total deposits of $383 million and $301 million in their respective protocols. However, a closer examination of the network's activity reveals that some top DApps are struggling to maintain trading volumes, and a handful of airdrops appear to be driving user growth.

During the week ending July 19, the two largest TON Network DApps experienced a significant drop in activity. DeDust's trading volumes fell by 63%, while Ston Fi's volumes decreased by 38%. Notably, the growth in unique active addresses — which serves as a proxy for the number of users engaging with DApps on the network — was largely driven by airdrop anticipation from mini-games such as CatizenAI and Yescoin.

Apart from the excitement generated by new DApps targeting the play-to-earn market, decentralized finance applications like DeDust saw a 19% decrease in weekly users, while Ston Fi recorded only a 4% increase in active addresses during the same period. Additionally, there were complaints about the token allocation in recently launched projects such as Pixelverse.

Related: Telegram to Get Mini App Store by the End of July — Pavel Durov

On the social network X, user MB complained about how the Pixelverse token launch motivated bots by rewarding users for simply creating an account and linking it to social media platforms. Furthermore, the analysis highlighted the lack of vesting information and a large allocation to influencers (KOLs) that could increase sell pressure.

While The Open Network does not directly influence the projects launching on its blockchain, the demand for TON is largely driven by the growth of its DApps ecosystem, which in turn is influenced by how token launches on the TON Network are handled. Given that this ecosystem is still in its early stages, it may be too soon to judge the sustainability of these airdrops and token launches.