What is the real potential of The Open Network (TON)?

As an analyst with over two decades of experience in the tech and finance industries, I’ve seen my fair share of rising stars that quickly fizzled out. The Open Network (TON) is no exception to this rule, though it certainly had a unique start. Its integration with Telegram’s messaging app was a game-changer, propelling TON into the stratosphere last year. However, like a firework that burns bright but burns out quickly, the excitement surrounding TON has waned just as rapidly.

In simpler terms, The Open Network (TON), which was renowned as the fastest-expanding blockchain in 2024, is experiencing a substantial deceleration. Not long ago, it boasted an impressive 100 million digital wallets, largely due to its connection with the Telegram messaging platform.

The surge in popularity of TON is largely due to its dissemination via Telegram’s Mini Apps and games. As Yat Siu, chairman of Animoca Brands, noted, “We didn’t have access to such distribution channels until Telegram emerged, providing us with an open ecosystem.

With Mini Apps and an integrated digital wallet within Telegram, users found it straightforward to interact with the blockchain.

Nevertheless, the initial enthusiasm seems to have diminished significantly. The level of network activity has drastically decreased, and the value of TON-linked tokens has nosedived. The surge in users, who were enticed by airdrops from games such as Hamster Kombat and Notcoin, has resulted in a decline.

Marcel Pechman, a market analyst at CryptoMoon, pointed out that when things are given away for free, people don’t see their worth. This is because he observed that many users quickly withdrew their free tokens without appreciating them.

Last summer, analysts pointed out that TON was overvalued, with a market cap of $40 billion which exceeded both the Nasdaq and Coinbase, a situation that seemed unreasonable as per Ryan Connor, head of research at Blockworks.

With the market experiencing a chill, the downward push on the token’s price was due to the selling activity from initial investors and enthusiastic gamers.

Yet, TON’s future still holds huge potential, analysts agree.

Regardless of the current economic dip, the addition of numerous new users via the TON wallet continues to be a substantial asset. This gives them access to the network and paves the way for potential future applications within the Telegram community.

Pantera Capital’s Ryan Barney noted that they are well-informed about cryptocurrencies. He then posed a question: ‘What innovative applications could we develop based on their digital wallets?’ He cited advertising, online shopping, and transactions as some possible scenarios.

For a deeper understanding of TON’s future prospects beyond current buzz, be sure to watch the entire video on our YouTube channel, and remember to hit that subscribe button for more updates!

2024-11-21 20:09

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