The Open Network (TON) has recently emerged as one of the leading Layer 1 solutions in the cryptocurrency space, capturing over 50% of all Layer 1 transactions in September 2024. This success is largely attributed to several token launches on the network, including projects like DOGS, CatizenAI, Rocky Rabbit, Watbird, and Hamster Kombat, which collectively attracted millions of monthly active users. While TON has seen significant growth, it has been overtaken by Solana in terms of transaction count and daily active wallets, with Solana processing over 1.1 billion transactions and gaining 3.9 million daily active addresses.
Despite the competition from Solana, TON has received bullish predictions from Bitget, a major investor in the Open Network Foundation. Bitget forecasts a potential “de-Telegramization” of the TON ecosystem due to increasing regulatory scrutiny faced by Telegram, the messaging app associated with TON. While TON currently relies on Telegram’s user base, the report predicts a long-term trend towards greater independence for the TON ecosystem. The recent arrest of Pavel Durov, CEO of Telegram, has had a significant impact on TON, resulting in a sharp drop in the price of the TON token and the total value locked (TVL) on the TON chain.
In terms of token performance, Bitget anticipates that Toncoin, the native cryptocurrency of the TON blockchain, will outperform Bitcoin’s spot returns in a bullish market. The report also predicts increased institutional interest in TON, with many institutions favoring over-the-counter (OTC) purchases. Despite the challenges faced by TON following Pavel Durov’s arrest, Toncoin has still managed to achieve a remarkable 149% return since the beginning of the year, outperforming Bitcoin which only saw a 51% increase during the same period.
While TON may face regulatory challenges due to its association with Telegram, the ecosystem is expected to continue growing and gaining more independence from the messaging app. With successful token launches and bullish predictions from Bitget, TON remains a strong player in the Layer 1 solutions market. Despite being overtaken by Solana in transaction count and daily active addresses, TON has demonstrated resilience and potential for further growth in the cryptocurrency space. As the ecosystem evolves and adapts to changing market conditions, TON has the opportunity to solidify its position as a leading Layer 1 solution in the crypto industry.
