The Open Network (TON), once hailed as the fastest-growing blockchain of 2024, is facing a significant slowdown. Just a few months ago, it reached an impressive 100 million wallets, thanks to its integration with the Telegram messaging app.
The rapid rise of TON can be attributed to its distribution through Telegram’s Mini Apps and games. “We were unable to find the kind of distribution outlets until Telegram came along and opened up their ecosystem,” Animoca Brands chairman Yat Siu pointed out.
The ease of access, with Mini Apps and a wallet directly integrated into Telegram, made it easy for users to engage with the blockchain.
However, the excitement has since faded. Network activity has dropped sharply, and prices of TON-based tokens have plummeted. The initial surge in users, many of whom were attracted by airdrops from games like Hamster Kombat and Notcoin, has led to a drop-off.
“If you give stuff for free, nobody will value it,” said Cointelegraph market analyst Marcel Pechman, referring to how many users cashed out immediately after receiving free tokens.
Another issue, according to analysts, is the overinflated valuation of TON last summer. “TON was trading at a $40 billion valuation, greater than the Nasdaq, greater than Coinbase, that just seemed incorrect,” said Blockworks head of research Ryan Connor.
As the market cooled, the selling pressure from early investors and game users caused the price of the token to fall.
Yet, TON’s future still holds huge potential, analysts agree.
Despite the downturn, the onboarding of millions of new users through the TON wallet remains a significant advantage, providing access to the network and opening the door to future use cases for Telegram users.
“They’ve already been educated on what crypto is. What are the applications we can build for them from their wallet?” said Pantera Capital partner Ryan Barney, mentioning advertising, social commerce, and payments as some of the potential use cases.
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