The heat from Tap-to-earn applications has passed, The Open Network and Toncoin ($TON ) are showing signs of waning user enthusiasm. However, TON network is still the most active network in the market.
This could open up opportunities for Toncoin (TON) investors to buy TON at a better price.
Toncoin (TON) Dominance Rate Has Dropped Sharply Over the Past 8 Months
Looking at the dominance of TON (TON.D) in the total market capitalization will help assess investors' preference for TON in choosing a portfolio. The chart shows that TON.D has continuously decreased sharply since May, from 1.1% to nearly 0.4%.
If we compare it with the $TON price, we can see that TON.D when the TON price is at $1.2 is the same as TON.D when the TON price is at $5.5, both are 0.4%. The reason may be that even though the TON price is increasing, investors have more options when allocating their portfolios in the late 2024 period. This is a sign that TON is losing momentum.
Daily Active Wallet Addresses on TON Have Dropped Sharply in the Past Three Months
Artemis data shows that the number of daily active addresses (DAA) on TON has dropped by 90%, from 2.5 million in September to around 250,000 today. The decline in DAA reflects a decrease in demand for TON, as well as a lack of appeal for the network, causing users to temporarily leave.
DAA’s decline may be due to the lack of excitement from Telegram Mini Apps. A recent report from BeInCrypto said that Tap to Earn games are losing players due to boredom and lack of motivation to stay after the token has been launched and listed.
Data from defillama also shows that TON’s total value locked (TVL) has dropped from a high of $770 million to $248 million in December. TVL of leading TON protocols such as Tonstakers, STON.fi, bemo, DeDust have also recorded a decline of 10% to 22% in the past week.
These signs warn of capital outflows from the TON ecosystem and may cause TON’s price to lose momentum.
Telegram is still a potential land to attract new users for TON
The growth of the TON network in recent times is closely linked to the growth of Telegram users. Telegram users are the biggest advantage that $TON has over other blockchains. Telegram CEO Pavel Durov recently shared that 2024 is the year Telegram records profits after 3 years of promotion.
“2024 has been a very good year for Telegram. For the first time in its 3-year history of optimization, Telegram has become profitable. During the year, the number of Telegram Premium subscribers tripled, surpassing 12 million. Our advertising revenue also increased several times. As a result, Telegram's total revenue in 2024 exceeded $ 1 billion, and we ended the year with more than $ 500 million in cash reserves, not counting crypto assets,” Pavel Durov said.