Investors’ excitement over airdrops and other incentives fueled by the rise in TON Network TVL, is this a bullish sentiment for the TON price rally?
Toncoin (TON) is the native coin of The Open Network, a layer-1 blockchain initially developed by the Telegram messaging software. Telegram’s 900 million active users are the primary factor driving the TON ecosystem.
The TON Network has surpassed Optimism to become the tenth largest blockchain in terms of total value locked (TVL) despite being relatively new to the decentralized applications (DApps) ecosystem.
Bitcoin bridge and EVM compatibility are among New initiatives
Bitget crypto exchange and Singapore-based investment firm Foresight Ventures jointly announced a $20 million TON ecosystem fund on June 26. The fund is intended to provide support for early-stage initiatives and TON-based applications. The exchange had previously introduced an official Telegram signal trading recommendation bot, which allowed group proprietors to incorporate this functionality at no cost.
The TON applications chain, a layer-2 network atop the TON blockchain, is also expected to contribute to TON’s success. This initiative, announced on July 9 and supported by The Open Platform, will incorporate Polygon’s technology and provide compatibility with the Ethereum Virtual Machine (EVM). This will facilitate the transition of DApps to the new TON layer-2 solution for developers.
Triangle, a Web3 startup accelerator, has been established by the TON Foundation in collaboration with 1inch and Sign. Following the successful introduction of the Telegram-based game Notcoin, announced on July 10, this initiative concentrates on play-to-earn mini-games. Furthermore, on July 17, OKX exchange announced the integration of the TON network into its standalone Web3 wallet. This integration will allow users to administer and swap assets using Toncoin’s blockchain.
More recently, on July 18, the TON Foundation announced the Teleport Bitcoin bridge, which will facilitate integration with DApps within the TON ecosystem, such as decentralized exchanges (DEX) and lending platforms. Blockchain bridges facilitate the transmission of tokens or data between various networks. The TON Network implements a “simplified payment verification client” and a trustless architecture to safeguard this linkage.
Airdrop frenzy, Declining volumes of TON Network
DeDust and Ston Fi decentralized exchanges are the most successful decentralized applications (DApps) on the TON Network regarding total value locked (TVL). They contain $383 million and $301 million in deposits, respectively. Despite their apparent success, a more thorough examination of the network’s activity reveals that some of its most prominent DApps are experiencing difficulty maintaining volumes. At the same time, a small number of airdrops has primarily driven user growth.
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The two main TON Network DApps experienced a substantial decrease in activity during the week ending July 19. Ston Fi experienced a 38% decrease in turnover, while DeDust experienced a 63% decrease in volumes. The growth in unique active addresses, a proxy for the number of users engaging with the network’s DApps, has been primarily driven by airdrop expectations for mini-games, such as CatizenAI and Yescoin.
In addition to the enthusiasm generated by the recently launched DApps designed explicitly for the play-to-earn market, decentralized finance applications such as DeDust experienced a 19% decrease in weekly users. In comparison, Ston Fi only experienced a 4% increase in active addresses during the same period. Furthermore, the allocation of tokens in recently introduced projects, such as Pixelverse, has been criticized.
On the social network X, user MB complained about the Pixelverse token launch, which incentivized bots by rewarding users for creating an account and connecting it to social networks. Additionally, the analysis underscored the absence of vesting information, exacerbating the selling pressure despite the substantial allocation to influencers (KOLs).
Although The Open Network does not directly impact the projects launched on its blockchain, the demand for TON is significantly influenced by the expansion of its DApps ecosystem. The management of token launches on the TON Network directly influences this development. Judging the sustainability of these airdrops and token launches appears premature, as this ecosystem is still in its infancy.
