Recent study suggests TON and Telegram story may be overrated
Blockworks Research experts believe Toncoin, Telegram story is overstated.
The social media messaging service lacks EVM compatibility and has few daily users.
Santiment data shows TON investors have regularly profited.
Friday's TON price is $7.605, down 2.5%.
As TON price rose about 20% on OKX in June, market players have paid attention to the Telegram story. New Blockworks Research study reveals TON and the Telegram story may be overpriced.
Telegram narrative and TON: overestimated?
Traders like the TON and Telegram story, according to Blockworks Research. The article says market players are counting on TON to be the next Solana (SOL) or Ethereum (ETH) this cycle.
The market may have overstated Telegram's distribution, TON's incompatibility with the Ethereum Virtual Machine (EVM), and the programming language.
The messaging app has a worldwide reach and many Monthly Active Users (MAUs), but its Daily Active Users (DAUs) are low compared to other platforms. This suggests limited penetration and a less monetizable userbase than expected.
EVMs are incompatible with the TON environment, and its native programming language has a smaller community than Solidity and Rust. These factors lead Blockworks Research analysts to believe the platform's demand, use, and market share are exaggerated.
The Telegram story undoubtedly drove June TON price increases of about 20%. Analysts compare WeChat to Telegram, noting that WeChat is exclusively in China while IT giants dominate the US market. Thus, Telegram may encounter problems in expanding its US user base and market share.
$TON traders profited all week.
Nearly every week since June 22, TON investors have gained. Positive spikes in Santiment's Network Realized Profit/Loss indicate traders' profit-taking. TON gained 20% in June despite asset increases.
TON is about 9% off its June 15 monthly high of $8.288.
