Overview By  Artem Khomenko
Normal +2 206 18 Sept 2023
Normal +2

TON Gaining Momentum: A Review of the Project's Ecosystem

By  Artem Khomenko 206 18 Sept 2023
Photo - TON Gaining Momentum: A Review of the Project's Ecosystem

Over the last 3 days, TON has seen a 20% increase, pushing the project's market cap to $8.2 billion!

Previously, we've delved into an in-depth analysis of the TON blockchain. Now, let's turn our focus to the up-to-date statistics of TON, the latest developments, its overarching ecosystem, and forecast the trajectory for The Open Network.

Overview of Network Stats and TON Coin

At the time of writing, TON cryptocurrency occupies the 8th spot on Coinmarketcap's ranking, outpacing renowned names like Solana, Polkadot, Litecoin, Polygon, Avalanche, and several others. 

From June 10, a span of just 3 months, the TON price has rocketed by 90%, now trading at $2.4 per coin. By comparing this trajectory with the primary cryptocurrency trend, it's evident that TON closely aligns with BTC's performance.

The recent 3-month trajectory of TON  Source: coingecko.com

The recent 3-month trajectory of TON Source: coingecko.com

Based on the blockchain data from TON's official website, the network has consistently demonstrated a positive trajectory across most indicators over the past year. TON currently has a user base of over 3.3 million, processes 200,000 transactions daily, and features more than 700,000 wallets that actively engage with the network and its smart contracts. Additionally, it attracts nearly 1,000 new users daily.

TON Network Overview Source: tonstat.com

TON Network Overview Source: tonstat.com

The TON network houses over 1.1 million NFTs and has more than 130,000 tokens that operate based on TON's infrastructure. The Domain Name Service on TON also reports promising figures, with over 30,000 clients having availed its services. 

TON's Array of Smart Contracts Source: tonstat.com

TON's Array of Smart Contracts Source: tonstat.com

In terms of the project's DeFi infrastructure, its Total Value Locked (TVL) stands impressively at $10 million, according to analytics platform DeFiLlama.

TON’s TVL  Source: defillama.com

TON’s TVL Source: defillama.com

The Launch of Telegram's Embedded Wallet

On September 14, Pavel Durov officially announced the introduction of the TON Wallet within Telegram's embedded interface. This strategic move is expected to foster faster integration between the messaging app and the cryptocurrency realm, offering hundreds of millions of users access to Web3. 

The wallet is slated to become fully operational by November 2023, becoming accessible to all users outside the U.S. For those with the most recent Telegram update, the wallet can be spotted within the settings menu.

In the previous year, TON successfully launched Telegram identifiers on the Fragment marketplace. As per Pavel Durov, this venture amassed user funds of up to $120 million within a year. 

The TON Project Ecosystem

Evaluating the TON blockchain presents a unique challenge due to its private architecture. While the protocol's official website offers statistical insights, accessing the network's data directly requires specific wallet addresses or transaction hashes:

Blockchain Explorer for The Open Network (TON) Source: tonscan.org

Blockchain Explorer for The Open Network (TON) Source: tonscan.org

When diving into the overarching ecosystem of the network, a good starting point is the cryptocurrency wallets. The list comprises Tonkeeper, @wallet (Telegram's proprietary wallet), TonHub, MyTonWallet, and others featured on the project's official site:

List of Cryptocurrency Wallets Compatible with TON Source: ton.org

List of Cryptocurrency Wallets Compatible with TON Source: ton.org

For a deeper look into TON's decentralized infrastructure, one can refer to DeFiLlama. This site showcases six notable projects, including decentralized exchanges such as Megatron Finance, DeDust, STON.fi, Tegro Finance, as well as the DAOLama credit protocol and the bemo liquid staking app. A significant portion of funds, nearly $5 million in TVL (Total Value Locked), is held by Megatron Finance.

TON's DeFi Ecosystem  Source: defillama.com

TON's DeFi Ecosystem Source: defillama.com

Additionally, The Open Network features an integrated cross-chain bridge, facilitating fund transfers between Ethereum and Binance Smart Chain. The system supports transfers of TON coins, WBTC, and various stablecoins, including USDT, USDC, and DAI.

TON vs. Other Blockchains

Given the private nature of The Open Network, assessing its on-chain metrics and contrasting them with other networks is not straightforward. However, the company lists several advantages over networks such as Ethereum and Solana on its website. 

TON boasts a substantially larger number of sharding chains. Inter-segment communication across different networks is almost immediate, with the maximum transaction finalization time being a mere 6 seconds. 

Comparing the TON Network with Ethereum and Solana Blockchains Source: ton.org

Comparing the TON Network with Ethereum and Solana Blockchains Source: ton.org

Delving into sharding technology, TON can support and run up to 232 workchains, each potentially divided into 260 shardchains. This implies that, in theory, the network's maximum TPS can surpass 1 million.

Advantages and Disadvantages of TON

Key benefits include:

  • Scalability: Enhanced scalability owing to the Proof-of-Stake consensus algorithm and the integrated sharding technology.

  • User Accessibility: Seamless integration with the Telegram platform, effectively turning the messaging app into a SocialFi venture.

  • Consistent Growth: Steady user base expansion, coupled with a strong correlation with the BTC price fluctuations.

  • Low Inflation: TON exhibits a modest annual inflation rate, pegged at 0.6%.

Conversely, both the TON token and The Open Network present several challenges:

  • Regulatory Hurdles: The project, formerly branded as “Gram”, faced hefty sanctions from the SEC due to regulatory missteps during its ICO. While the developers strive to sidestep such challenges, regulatory scrutiny remains a looming concern.

  • Opaque Structure: The closed nature of the blockchain hampers transparency and real-time activity tracking.

  • Inflation Concerns: The absence of an upper limit on coin supply introduces inflationary pressures.

  • Centralization Issues: As per the project's whitepaper, a significant portion of assets are under the control of validators, which could influence the token's price.

  • DeFi Development Lag: The Total Value Locked (TVL) in TON's decentralized framework stands at a mere $10 million, even though the coin's market cap overshadows this at $6 billion. This disparity suggests that users gravitate towards alternative blockchains for their DeFi needs.

  • Incompatibility with Ethereum: While TON supports embedded smart contracts and SDK libraries, its non-alignment with Ethereum's Virtual Machine (EVM) poses potential interoperability challenges.

  • Privacy Concerns: Utilizing TON's native wallet, @wallet, can compromise user anonymity, revealing their phone details to Telegram.

Final Words

The Open Network is on an upward trajectory, honoring the benchmarks established in its foundational documents. Moving forward, the developer team should prioritize ironing out the platform's inherent flaws. By doing so, TON will be better positioned to rival other networks, appealing to a broader global audience.