Understanding the Surge of The Open Network in Layer 1 Solutions 🌐
The Open Network (TON) has emerged as a prominent player among Layer 1 blockchain solutions over the past few months. Its remarkable performance, particularly in September, has set it apart from established competitors like Ethereum and Avalanche. According to recent data, TON captured more than half of all Layer 1 transactions, a significant achievement that highlights its growing influence in the cryptocurrency space this year.
Leading Layer 1 Transactions: TON’s Impressive Figures 📊
As per data from CryptoQuant, the surge of TON in the realm of Layer 1 transactions is notable. The network’s ascendance is largely attributed to several successful token launches that have drawn the interest of a vast user base. For instance:
- DOGS: This early project on the network managed to garner about 28 million monthly active users (MAU).
- CatizenAI and Rocky Rabbit: Both projects attracted around 18 million MAUs each.
- Watbird: Contributed to TON’s growth with an impressive 12 million MAUs.
- Hamster Kombat: Stood out with a staggering 110 million MAUs.
These figures collectively illustrate how TON has successfully captured the attention and engagement of users, significantly influencing the network’s ongoing development.
Solana Retains Dominance in Layer 1 Chains ⚡
While TON is making waves, it’s essential to note that Solana, alongside BNB Chain and NEAR Protocol, has been excluded from CryptoQuant’s analysis. Nevertheless, data from Artemis indicates that Solana continues to lead among Layer 1 chains when it comes to transaction volume and daily active wallets. As of late September, Solana processed over 1.1 billion transactions that month and maintained 3.9 million daily active addresses.
In contrast, TON’s performance, while noteworthy, has seen it lag behind Solana. In September, TON logged around 212.5 million transactions, placing it second in transaction volume among Layer 1 chains. However, it faced stiff competition in daily active wallets, with only 2.1 million compared to Solana and NEAR Protocol.
Bitget’s Insight on TON and Its Future Outlook 🔮
Bitget, a cryptocurrency exchange and a significant investor in the Open Network Foundation, has shared optimistic prospects for the TON ecosystem in its latest report. A notable suggestion from their analysis is the potential need for TON to undergo a “de-Telegramization” process. This consideration arises in light of increasing regulatory pressures facing Telegram, the messaging app closely associated with TON.
While TON might continue to benefit from Telegram’s vast user base in the short run, the report anticipates a shift towards more independence over time. The recent arrest of Telegram’s CEO has also stirred concerns, causing a noticeable 17.6% decline in the price of the TON token shortly after the event. Additionally, the total value locked (TVL) within the TON chain fell sharply, witnessing a more than 60% drop in just one day.
As of September 30, the TVL for TON stands at approximately $427 million, marking a decline of 45% from its peak of $776 million observed in July 2024.
Performance of Toncoin and Market Perspectives 📈
On the performance front, Bitget forecasts that Toncoin, which serves as the native cryptocurrency for the TON blockchain, is likely to surpass Bitcoin’s spot returns in a favorable market. The findings suggest an uptick in institutional interest toward TON, with more entities leaning towards over-the-counter (OTC) acquisitions. Even after experiencing a significant decline in August, Toncoin has managed to record a remarkable 149% surge since the start of the year, rising from $2.27 on January 1 to $5.82 as of the latest updates.
For comparative context, Bitcoin has seen a more modest gain, achieving a 51% increase from $43,835 on January 1 to $64,029 at present.
Hot Take: The Future of TON in a Changing Landscape 🌍
This year has proven to be a transformative period for The Open Network. Its rapid rise in transactions and user engagement set against the backdrop of evolving regulatory landscapes presents both challenges and opportunities. As the cryptocurrency market continues to mature, the strategies adopted by TON, including its potential separation from Telegram, will play a pivotal role in determining its long-term success.
Being mindful of the fluctuations and dynamics in the blockchain space, stakeholders should closely monitor ongoing developments within the TON ecosystem as it adapts to external influences.
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