Toncoin (TON) experienced an unexpected surge in price, increasing by more than 45% in August, according to crypto analytics firm Messari. TON is the native token for a layer-1 blockchain that was originally developed by the encrypted messaging platform Telegram. The token started the month trading around $1.20 and ended at $1.75, with its current price at $1.83.
Messari explains that TON’s price pump occurred during the summer’s wave of Telegram bot apps, such as Unibot (UNIBOT). Although these apps do not directly use the TON chain and instead utilize Telegram as an interface to Ethereum protocols, they have popularized a new messaging app-based user experience that simplifies blockchain interactions for users.
Furthermore, TON’s ecosystem is expanding, with the project currently locking in a total value of $9.62 million, as reported by the decentralized finance tracker DeFi Llama. Total value locked (TVL) refers to the amount of capital deposited within a protocol’s smart contracts and is often used to assess the health of a crypto ecosystem.
It is important to note that Telegram distanced itself from the TON project in 2020 after a legal dispute with the U.S. Securities and Exchange Commission (SEC). The Open Network, an open-source community of developers, took over the management of the technology that year.
Related Post
One of the advantages of TON is its integration with Telegram’s messaging platform, which boasts 700 million users. This integration allows TON to be sent within the platform without the need for users to enter long wallet addresses.
In conclusion, various factors contributed to TON’s significant price surge in August. The growth in Telegram bot apps and the subsequent popularization of a simplified blockchain user experience played a significant role. Additionally, TON’s ecosystem expansion, as demonstrated by its increasing TVL, indicates a healthy crypto ecosystem. Despite the legal challenges faced by the project, TON’s integration with Telegram provides a unique advantage and potential for further growth in the future.
