Toncoin (TON), with a market capitalization of $510 million, ranks as the 16th largest cryptocurrency. At the time of writing, it is trading at $1.49. TON’s price has increased by 5% in the past 24 hours, accompanied by a trading volume of $36.4 million, marking a 1.5% rise compared to the previous day.
In fact, TON’s upward momentum began even before the weekend, when it was trading around $1.25. Since then, it has appreciated by approximately 20%.
This recent price surge has allowed TON to break out of a month-long consolidation phase, during which it fluctuated between $1.30 and $1.50. Although several attempts were made to surpass the $1.50 resistance level, none were successful until now. The strong resistance at this level suggested that sustained upward movement beyond $1.50 might not be achievable in the near term.
On the upside, TON faces significant resistance at its current levels, while on the downside, support is found at $1.30. If this support level fails to hold, the price could decline further to $1.17.
Despite these challenges, the token has gained 9.8% over the past 30 days and 19.3% over the last year. However, since the beginning of 2023, TON’s value has decreased by 32%. Between February and May, the cryptocurrency traded within a range of $1.18 to $2.55. Since then, its value has trended downward, hitting a low of $1.17 earlier this month. Additionally, TON remains 72% below its all-time high of $5.29, which was reached in November 2021.
Toncoin’s recent gains can be partly attributed to the MMORPG blockchain game Tap Fantasy expanding onto the TON network. This move leverages TON’s large user base and robust technical infrastructure. The cross-chain integration is expected to enhance transaction efficiency for players and foster growth within the game’s economy.
Less than a month ago, Telegram CEO Pavel Durov announced via his official Telegram channel that he holds both Toncoin and Bitcoin. This announcement coincided with a period of substantial growth for Telegram. Durov also revealed that the messaging app now boasts over 800 million monthly active users and sees more than 2.5 million new accounts created daily.
Network Growth and Expansion
As highlighted in The Q2 2023 TON Developer Report, development activity on the TON network has surged, driven by bullish momentum. The TON Foundation noted that despite a generally declining crypto industry landscape, developer engagement on TON grew by an impressive 102% year-over-year in the second quarter.
By the end of June, the number of developers contributing to the project had increased to 9,134, up 6.56% from the 8,572 contributors recorded on May 1. During this period, TON documentation received over 300 submissions and 32 merges from 111 unique contributors.
The report, released earlier this month, attributed this growth to events like the DoraHacks hackathon, where developers demonstrated strong engagement by working with closed-source production repositories. The foundation also organized several challenges, including one for the TON Wallet, which attracted approximately 100 entries.
Last month, the TON wallet team introduced Wallet Pay, a payment system that enables users to purchase goods and services on Telegram using cryptocurrencies. The system integrates seamlessly with Telegram bots and services, allowing payments not only in Toncoin but also in BTC and USDT directly through the messaging interface.
Wallet Pay simplifies the user experience by eliminating the need to navigate complex crypto payment services. Transactions can be completed with just a few clicks within merchant bots or the Telegram Web app. Users can also top up their crypto accounts using debit or credit cards during the payment process, making digital assets more accessible.
In another recent development, the TON Foundation partnered with cryptocurrency exchange BIT to allow traders to pay transaction fees using Toncoin. This makes BIT the first exchange to permit users to pay fees with a non-native token that is not a stablecoin.
Daniel Yang, Global Head of Business Development at the TON Foundation, stated, “TON has always been committed to creating an open, scalable network that transcends traditional barriers. Now, with the ability to pay transaction fees using Toncoin, we are turning this vision into reality. This integration is just one of many practical use cases for Toncoin on one of the world’s leading digital asset platforms.”
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The Expansive Ecosystem
Toncoin serves as the native currency of The Open Network (TON), a layer-1 blockchain established in 2018 as a proof-of-stake (PoS) network.
TON is a multi-layered network consisting of a masterchain, multiple workchains, and shard chains. It uses the TON Virtual Machine (TVM) to provide a secure and isolated environment for executing smart contracts. For consensus, TON employs the Block Proof-of-Stake (BPoS) mechanism, which requires a majority of honest validators to confirm blocks, thereby enhancing network security.
To address scalability—a significant bottleneck in the crypto space—TON utilizes sharding. Each workchain is divided into multiple shard chains that process transactions in parallel and maintain subsets of the global state. This structure allows for efficient transaction processing without requiring every node to handle every transaction. The network also supports interoperability and cross-chain communication between different workchains and shard chains, enabling seamless asset transfers and transaction execution across the TON ecosystem.
The total supply of Toncoin is 5.09 billion, with an annual inflation rate of 0.6%. Currently, 3.48 billion TON are in circulation. Validators have staked 473.45 million tokens to help secure the blockchain.
Beyond staking, Toncoin functions as a utility token. It is used to pay for transaction processing, smart contracts, and payment services within applications built on the platform. Toncoin also plays a role in TON’s on-chain governance initiatives and is used for payments related to blockchain-based domain names (DNS), TON Proxy, and decentralized data storage.
The TON ecosystem includes a wide array of products and services. TON Wallets, for instance, are digital wallets designed specifically for storing, managing, and transacting with Toncoin. They provide users with a secure and convenient way to interact with the blockchain.
TON Storage offers a decentralized storage solution, allowing users to store data and information on the blockchain with the added benefit of private encryption using their wallet’s private key.
Another key component is TON WWW, a collection of web pages and services accessible via the TON network. It leverages TON Sites, which enable users to launch web servers and make their sites available on TON, and TON Proxy, a technology designed to combat censorship, provide easy access to dApps, and allow browsing and interaction with TON sites.
The ecosystem also includes TON DNS, a service aimed at making crypto wallets, accounts, smart contracts, and other services more user-friendly, and Ton Bridge, which facilitates the conversion and transfer of TON coins between Ethereum, BSC, and The Open Network.
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The Broader Cryptocurrency Market
While Toncoin is experiencing an upward trend, the broader cryptocurrency market remains relatively stagnant, with a few exceptions like Rune (15.2%) and HBAR (13.5%), which have posted significant gains. The total crypto market capitalization has declined by 0.1% to $1.214 trillion.
Major cryptocurrencies like Bitcoin and Ethereum have been trading flat for some time. As of writing, Bitcoin is priced at $29,329, while Ethereum is trading at $1,837.
According to on-chain analytics provider CryptoQuant, institutional investors may have completed their Bitcoin accumulation during the major downturns that followed the collapse of FTX in November 2022 and the Terra/Luna ecosystem in May 2022. The “Token Transfer” metric indicates that all significant whale transactions occurred at or near cycle bottoms.
CryptoQuant suggests that the low of $15,700, established after substantial institutional buying, could represent the bottom of this cycle. The firm added, “If ‘Token Transfer’ and ‘Velocity’ increase alongside future price appreciation, it could be a precursor to a rally.”
Amid declining trading volumes and market volatility, cryptocurrency exchange Coinbase has been expanding its services. The platform has formed a strategic partnership with Peoples Trust Company, a subsidiary of Peoples Group, to enable seamless Canadian dollar deposits and withdrawals for its Canadian users.
Coinbase has identified Canada as a priority market for deep investment, offering significant growth opportunities as the company faces legal challenges in the United States. In contrast, Binance exited the Canadian market in May, citing restrictive regulatory guidance.
One of the few exciting developments in the current dull market is the potential approval of a Bitcoin ETF. Brokerage firm Bernstein stated in a report on Monday that a Bitcoin ETF would inject capital into the market by creating demand for spot Bitcoin and signaling regulatory approval, thereby generating momentum for retail and institutional flows.
Analysts led by Gautam Chhugani wrote that the likelihood of a spot Bitcoin ETF has “increased,” thanks to growing interest from leading global asset managers and potential mechanisms to address the SEC’s objections. The firm expects the ETF market to reach 10% of the total market capitalization of the largest cryptocurrency within two to three years.
Although the SEC recently extended its review of the Ark 21Shares Bitcoin ETF application and decisions on applications from BlackRock, WisdomTree, Invesco, and VanEck are pending, Bernstein noted that crypto ETFs would benefit from “strong brand marketing pushes by leading global asset managers” and “distribution pushes by retail brokers and financial advisors.”
Beyond ETFs, the report also highlighted that new capital for the next bull cycle could come from the tokenization of traditional assets and native crypto infrastructure, as well as new stablecoin issuance.
For now, experts anticipate delays in Bitcoin ETF approvals. Former SEC lawyer John Reed Stark expressed skepticism about the likelihood of an ETF being approved, pointing to multiple potential risks. However, he suggested that the regulatory approach might shift after the upcoming election.
As cryptocurrency becomes a divisive issue between the two major U.S. political parties, a Republican victory in the 2024 election could pave the way for a spot Bitcoin ETF. Interestingly, a recent filing with the U.S. Office of Government Ethics revealed that former President Donald Trump holds up to $500,000 in an Ethereum wallet.
Trump, who is running for president again next year, has long been a crypto skeptic. However, last year, he released a series of NFT collections featuring his image, which sold out within hours. According to the filing, the second series, released in April, earned him between $500,000 and $1 million.
Frequently Asked Questions
What is Toncoin (TON)?
Toncoin is the native cryptocurrency of The Open Network (TON), a layer-1 blockchain designed for scalability and user-friendly decentralized applications. It is used for transactions, staking, and governance within the TON ecosystem.
Why did Toncoin’s price recently increase?
Toncoin’s price rise can be attributed to increased development activity, strategic partnerships like the integration with Tap Fantasy, and the announcement by Telegram’s CEO about holding Toncoin. These factors boosted investor confidence and demand.
How does TON ensure scalability?
TON uses a multi-layered architecture with sharding, allowing parallel transaction processing across workchains and shard chains. This design significantly enhances throughput and reduces latency compared to traditional blockchains.
What is Wallet Pay?
Wallet Pay is a payment system integrated into Telegram that enables users to make purchases using cryptocurrencies like Toncoin, Bitcoin, and USDT. It simplifies crypto payments for everyday transactions directly within the messaging app.
Can I stake Toncoin?
Yes, Toncoin can be staked to help secure the TON network. Validators and delegators earn rewards for participating in the proof-of-stake consensus mechanism, contributing to the blockchain’s security and efficiency.
What is the future outlook for TON?
With growing developer activity, strategic expansions, and increasing use cases, TON is positioned for further adoption. Its integration with Telegram and focus on user experience may drive long-term growth in the decentralized application space.