The Open Network (TON) ecosystem, the scalable blockchain and network project, has seen tremendous growth over the past year. Looking to understand why it has become so popular, we hear from industry experts in addition to analysing a new report by Bitget, the cryptocurrency exchange and Web3 company.
Originally created in 2018 by the global messaging platform Telegram, the TON network — then known as Gram — was poised for success. However, in 2020, Telegram abandoned the project after a legal clash with the Securities and Exchange Commission (SEC). Since the network was based on open-source software, other projects began building on its foundation. Two developers, Kirill Emelyanenko and Anatoliy Makosov, took the lead on a project initially called NewTON, which was rebranded as the TON Foundation (The Open Network) in May 2021.
In April 2022, the TON blockchain made a significant announcement, allowing Telegram users to make payments with cryptocurrency directly within the messaging app.
TON across the world
Since the formation of the TON Foundation, the blockchain has gained substantial traction worldwide, with most users based in Russia and Ukraine. However, adoption is also strong in India, Brazil and the US. This growth is largely due to ongoing development based on the original whitepaper from Telegram, aiming to provide a wide range of services.
Research from Bitget shows that the TON ecosystem has seen a 12-times increase in daily transaction volume, rising from 100,000 to 1.2 million over the past year. The total value locked in the ecosystem has reached $350million, an 18-fold increase (around 1800 per cent) in less than six months, largely driven by the growth in decentralised exchange (DEX) trading volume, which jumped from $2million to $40million since the beginning of the year. The native TON token’s price has also surged, averaging $5.5 as adoption continues to rise.
With TON initially created by Telegram, the current ecosystem remains closely integrated with the messaging platform. It has also forged partnerships with USDT through the TON Foundation and collaborated with organisations like HashKey Group, Fireblocks, DWF Labs and others.
Gracy Chen, CEO, Bitget
“TON’s ecosystem is rapidly gaining traction, particularly among tech-savvy enthusiasts eager to explore its innovative approach to decentralised solutions. At Bitget, we’ve witnessed a significant influx of users participating in TON-related projects, driven by its unique community engagement and seamless integration with exchanges,” said Gracy Chen, CEO of Bitget.
“Recent standout projects such as DOGS have attracted massive interest, and with exciting upcoming launches like CATI and HMSTR, we’re committed to supporting and fostering the growth of these groundbreaking initiatives.”
Why is TON so popular?
Remaining integrated with Telegram has allowed the TON ecosystem to thrive, leading to the widespread use of on-chain gaming apps and bots within the platform.
Another factor driving its popularity is its distinctive features compared to other ecosystems. TON offers multi-chain architecture, asynchronous smart contract calls, proxy solutions, and more. According to the Bitget report, these unique features position TON for significant growth.
Demand is also high. In a blog post by Revolut, the global neobank referred to Toncoin as “the much-requested Toncoin”.
The Bitget report suggests that while the TON blockchain will continue to benefit from Telegram’s user base, it is expected to gradually shift towards ‘de-Telegramization’ to reduce regulatory risks tied to the platform. The report also projects that the TON token’s value will rise alongside broader market trends, and the continued development of the ecosystem will attract more traditional users to the cryptocurrency market.
From Bitget’s point of view
Bitget Wallet is now used by 68 per cent of Telegram game users, contributing 17 per cent of active addresses on the TON network in the current month. By integrating with Web2 social platforms like Telegram, Bitget Wallet surpassed 12 million monthly active users.
Alvin Kan, COO, Bitget Wallet
“Integrating with the TON and Telegram ecosystem has been a game changer for Bitget Wallet. By tapping into Telegram’s vast user base, we’ve seamlessly bridged Web2 and Web3, creating a smooth and accessible experience for millions,” said Alvin Kan, COO at Bitget Wallet. “This has fuelled our growth to over 30 million user base with 12 million monthly active users. It’s clear that the future of Web3 lies in making it intuitive and integrated with platforms people are already familiar with.”
The report also highlights areas of growth and challenges for the TON ecosystem. Despite its potential, TON faces issues such as low trading activity and limited lending options. Sectors like DeFi, lending, and gaming are driving demand for its services. To accelerate growth, TON will need to overcome its DeFi limitations, expand beyond the CIS region, and navigate regulatory hurdles.
Hype or here to stay?
To understand the likelihood of continued growth and adoption of TON, we heard from experts across the industry.
Rumi Morales, partner and board member at Outlier Ventures
Commenting on how TON has utilised its ties with Telegram, Rumi Morales, partner and board member at Web3 accelerator Outlier Ventures, noted: “The TON ecosystem’s spike in transaction volume over the past year isn’t exactly shocking, given its tight integration with Telegram’s huge and growing user base. Telegram has long been the go-to messaging app for the crypto crowd, so TON naturally taps into that core audience, plus newcomers drawn to the app for other reasons. The addition of USDT has helped with liquidity, bringing in traders and casual users.
“In terms of real-world utility, TON is showing some strength in DeFi and gaming. Platforms like STON.fi and games like Hamster Kombat seem to be pulling in genuine users, not just the usual speculators. The ability to interact directly through Telegram without additional steps has made it easier for people who’ve been hesitant about crypto to dive in.”
However, she also noted the challenges it may face. “TON’s reliance on Telegram is a risk. While it’s helped them scale, it also ties the ecosystem to Telegram’s regulatory issues and any drama that comes with Durov. The team knows this and seems to be planning for how to reduce that exposure.
“On the technical side, TON’s architecture is built to scale, and it’s attracting users across markets. But they’ll need to break out of the Telegram bubble and improve their DeFi offerings, especially lending, to stay competitive.”
The post Long-Term Success or Short-Term Hype: Understanding the TON Ecosystem’s Growth appeared first on The Fintech Times.
