There’s growing speculation that TON (The Open Network) might become the next Solana (SOL) or Ethereum (ETH), primarily due to its association with Telegram. However, several significant challenges could temper this optimism.
Is TON Set to Gain More?
Despite Telegram’s vast global reach and impressive monthly active users (MAUs), a report suggests the market may be overestimating its distribution capabilities. This includes limitations of TON’s programming language and its fully diluted valuation (FDV).
Toncoin (TON) has surged by 226% year-to-date (YTD) and continues to rise, gaining 18% in the last 30 days. At press time, TON is trading at an average price of $7.55, down by 16% to a market cap of $224 million, making it the 8th largest crypto with a market cap of $18.6 billion.
Its rapid ascent has outpaced top cryptos like Dogecoin (DOGE) and Cardano (ADA). DOGE has dropped by 24% in the last 30 days but recovered by 2% in the last 24 hours, currently trading at $0.125. Its 24-hour trading volume is up by 13% to $658 million, with a market cap of $18.22 billion.
How Can This Be Possible?
Telegram’s extensive global user base is a strong selling point for TON, being one of the most widely used apps worldwide. This broad reach theoretically positions Telegram as a powerful funnel for driving user adoption of TON.
However, the bullish sentiment might overlook key issues. Daily active users (DAUs) tell a different story, with estimates ranging from 55 to 200 million, indicating a much lower engagement rate compared to MAUs. This disparity suggests that Telegram’s user base might not be as monetizable as it appears, potentially impacting TON’s growth and adoption.
Another major hurdle is TON’s native programming language, FunC. Unlike Ethereum’s Solidity, which resembles JavaScript and has widespread usage, and Solana’s Rust, which has a dedicated following, FunC is more similar to C. C is less familiar and less favored among developers, posing a challenge for TON’s adoption and growth.
Not a financial advice.