Toncoin (TON), the native coin of The Open Network, has seen significant growth recently, driven by the Telegram messaging app’s 900 million active users. The TON Network has quickly surpassed Optimism, becoming the tenth largest blockchain in terms of total value locked (TVL), now over $760 million. However, questions about the sustainability of this growth persist.

Recent Developments and Future Plans

On June 26, Bitget crypto exchange and Foresight Ventures announced a $20 million TON ecosystem fund to support early-stage projects and TON-based applications. The exchange had previously launched an official Telegram signal trading recommendation bot for group owners.

Top blockchains ranked by TVL, USD. Source: DefiLlama

A significant upcoming development is the launch of the TON applications chain, a layer-2 network on top of the TON blockchain. Announced on July 9 and backed by The Open Platform, this project will utilize Polygon’s technology and offer Ethereum Virtual Machine (EVM) compatibility, facilitating DApp development.

The TON Foundation has partnered with 1inch and Sign to launch a Web3 startup accelerator named Triangle, focusing on play-to-earn mini-games. Additionally, OKX exchange integrated the TON network into its standalone Web3 wallet on July 17, enabling users to manage and swap assets using Toncoin’s blockchain.

TON Network’s most active DApps past 7 days, USD. Source: DappRadar

On July 18, the TON Foundation announced the Teleport Bitcoin bridge, allowing integration with TON ecosystem DApps, including decentralized exchanges (DEX) and lending platforms. This bridge employs measures such as a trustless architecture and a “simplified payment verification client.”

Challenges and Concerns

Despite these advancements, the TON Network’s leading decentralized applications (DApps), DeDust and Ston Fi, are facing declining activity. DeDust saw a 63% drop in volumes, while Ston Fi experienced a 38% decrease. User growth has been driven largely by airdrop incentives for mini-games like CatizenAI and Yescoin, rather than organic engagement.

Source: Mbismail22

DeDust had 19% fewer weekly users, and Ston Fi only saw a 4% increase in active addresses. Criticism has also arisen over token allocations in new projects, with complaints about incentivizing bots and a lack of vesting information, which could increase sell pressure.

Conclusion

While the TON Network’s rapid growth is promising, its sustainability is uncertain. The ecosystem’s future will depend on how well it manages token launches and maintains user engagement beyond initial airdrop incentives. The potential for continued growth remains, but careful management will be crucial for long-term success.