- Toncoin continues to grow, reaching over 7 million active monthly users.
- Toncoin faces challenges with value retention and liquidity, with a significant drop in its market cap
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.
The cryptocurrency has expanded and has reached more than 7 million active monthly users. Despite being lower than Base’s 15 million users, Toncoin has outpaced Arbitrum, which saw its user base shrink from 9. 8 million to 2. 9 million. Despite the inability to integrate with the Ethereum Virtual Machine (EVM) and, hence, not being able to tap into the Ethereum market, Toncoin has been able to stand on its own as an independent layer-1 network.
Factors Fueling Toncoin’s Adoption
Several factors fuel Toncoin’s adoption. It has successfully incorporated tap-to-earn games that incorporate Web2 elements with achievement-based gameplay. The active social media groups also post daily challenges, which enhance user participation.
One of the key drivers was the airdrop of DOGS tokens, which led to more than 700,000 daily active wallets. The launch of the DOGS token was also quite successful in attracting new users and increasing the activity of the network. 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, also plays a role in user growth. However, there were issues with Sybill users, leading to a reset of more than half of the point farming accounts. Despite these challenges, the community remains optimistic about the potential for a larger upcoming airdrop.
Toncoin Faces Value and Liquidity Challenges
Toncoin, however, has not been able to maintain its value even with an increasing number of users. On 26th August, the network recorded an outflow of $3.13 million from decentralized trading pools. Reduced liquidity and a decline in TON’s market price have adversely affected the network value.
Currently, Toncoin holds $340.7 million in value locked, a decline from nearly $900 million at its peak. The network’s inability to support popular DeFi applications such as Uniswap or Aave has also impacted its DeFi protocol performance. However, Toncoin does not rely on centralized exchanges but rather on its native DEXs and protocols.
The native token, TON, is on the brink of falling out of the top 10 cryptocurrencies by market capitalization. It recently dropped below $5, with a market cap of $12.94 billion, edging close to Cardano’s valuation. Toncoin (TON) has experienced a significant price increase recently, with its current value at $5.10, marking an 8.67% rise over the past 24 hours.
Despite a bearish sentiment in the market, as reflected by a Fear & Greed Index level of 26, Toncoin’s recent performance is 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.
The circulating supply of Toncoin is 2.53 billion out of a maximum supply of 5 billion. The annual inflation rate stands at -26.20%, indicating a reduction in supply over the past year. This deflationary trend, combined with increased liquidity and market visibility, supports the ongoing price growth.
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