The Open Network (TON), once hailed as the fastest-growing blockchain in 2024, is now experiencing a significant slowdown. Just a few months ago, it had reached an impressive 100 million wallets, thanks to its integration with the Telegram messaging app.
"The rapid growth of TON could stem from distribution through Telegram's Mini Apps and games. We couldn't find suitable distribution channels until Telegram opened up their ecosystem," said Yat Siu, Chairman of Animoca Brands.
Easy accessibility, with Mini Apps and wallets integrated directly into Telegram, has helped users easily interact with blockchain.
However, the enthusiasm has waned. Network activity has dropped significantly, and the value of TON-based Tokens has plummeted. The initial surge in user numbers, many of whom were attracted by Airdrops from games like Hamster Kombat and Notcoin, has led to a decline.
"If you give it away for free, no one will value it," market analyst TinTucBitcoin Marcel Pechman observed, emphasizing how many users sold their free Tokens immediately.
Another issue, according to analysts, is the overvaluation of TON last summer. "TON was trading at a $40 billion valuation, larger than Nasdaq, larger than Coinbase, which seems off," said Blockworks Head of Research Ryan Connor.
As the market cooled, selling pressure from early investors and game users caused Token prices to drop.
However, analysts agree that TON's future still holds great potential.
Despite the decline, the ability to reach millions of new users through the TON wallet remains a significant advantage, providing access to the network and opening the door for future applications targeting Telegram users.
"They've been educated about digital currency. What applications can we build for them from their wallets?" said Pantera Capital Partner Ryan Barney, mentioning advertising, social commerce, and payments as potential applications.
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