Toncoin (TON) Continues Its Upward Trajectory Despite Recent Setbacks

The arrest of Telegram co-founder Pavel Durov in late August did not derail its progress. Toncoin demonstrated notable resilience even during two network outages that occurred during the distribution of the DOGS token.

Despite recent setbacks, Toncoin (TON) continues on an upward trajectory. The recent arrest of Telegram co-founder Pavel Durov in late August did not seem to hinder its progress. Toncoin also showed resilience during two separate network outages that occurred during the distribution of the DOGS token.

The cryptocurrency has expanded to reach over 7 million active monthly users. While lower than Base’s 15 million users, Toncoin outpaced Arbitrum, whose user base decreased from 9.8 million to 2.9 million. Notably, despite not integrating with the Ethereum Virtual Machine (EVM) and being unable to tap into the Ethereum market, Toncoin has managed to stand on its own as an independent layer-1 network.

Several factors are contributing to Toncoin’s adoption. It has successfully incorporated tap-to-earn games that combine Web2 elements with achievement-based gameplay. Active social media groups also post daily challenges to enhance user participation.

One of the key drivers was the airdrop of DOGS tokens, which resulted in over 700,000 daily active wallets. The launch of the DOGS token was also quite successful in attracting new users and increasing network activity. The second major airdrop of Toncoin in Hamster Kombat is also expected to sustain this growth.

Hamster Kombat, which is set to launch on September 26, is also contributing to user growth. However, there were issues with Sybill users, which led to a reset of over half of the point farming accounts. Despite these challenges, the community remains optimistic about the potential for a larger upcoming airdrop.

Toncoin faces challenges in value and liquidity

Despite increasing users, Toncoin has faced challenges in maintaining its value. On August 26, the network recorded an outflow of $3.13 million from decentralized trading pools. Reduced liquidity and a decline in TON’s market price adversely affected the network value.

Currently, Toncoin has a value locked at $340.7 million, down from nearly $900 million at its peak. The network's inability to integrate with popular DeFi applications like Uniswap or Aave also impacted its DeFi protocol performance. However, Toncoin does not rely on centralized exchanges but instead operates its native DEXs and protocols.

The native token, TON, is on the verge of dropping out of the top 10 cryptocurrencies by market capitalization. It recently fell below $5, with a market cap of $12.94 billion, approaching Cardano's valuation. Toncoin (TON) has experienced a significant price increase recently, with its current value at $5.10, indicating an 8.67% rise over the past 24 hours.

While the broader market sentiment remains bearish, as indicated by the Fear & Greed Index at 26, Toncoin's recent performance has been notably positive. The token hit an all-time high of $8.24 on June 15, 2024, and has maintained a price range between $4.47 and $5.12 since then.

Toncoin has a circulating supply of 2.53 billion out of a maximum supply of 5 billion. The annual inflation rate is -26.20%, indicating a decrease in supply over the past year. This deflationary trend, combined with increased liquidity and market visibility, contributes to the ongoing price increase.