The TON (The Open Network) blockchain has seen a notable decline in its daily active users. As reported in a post on Twitter/X by IntoTheBlock, the current tally of active users on TON is 1.58 million, a significant drop from a peak exceeding 5 million.
This post also included a chart illustrating the fluctuations in the number of daily active addresses, highlighting the spikes and drops corresponding to market enthusiasm and corrections. IntoTheBlock raises the question: what factors might initiate the next surge for TON?
TON’s DAU Decline: Should We Be Concerned?
IntoTheBlock is among several analytics firms that monitor various metrics in the cryptocurrency space, including daily active users (DAU). In the rapidly evolving world of crypto, DAU serves as an essential indicator of a project’s health and future prospects. DAU can be likened to the customer base, indicating that a higher number suggests greater usage and potential for growth.
Currently, the TON network has 1.58 million daily active users, a decrease from its peak of over 5 million.
The chart below captures a history of surges, typically linked to significant events or hype cycles.
Given this trend, what do you predict will trigger the next surge for TON? pic.twitter.com/TURqjjtLiN
— IntoTheBlock (@intotheblock) October 21, 2024
Despite these insights, TON’s current figures appear less than optimistic. IntoTheBlock notes a recent decline in DAU. However, data from DappRadar indicated a rise in user activity in early September, attributed in part to growing interest in crypto gaming.
This data is derived from the blockchain gaming metrics that monitor Dapps on platforms like Telegram, including Yescoin and Catizen. Still, following a peak of 5 million users on September 27, the DAU has reduced to 1.58 million as of October 27.
Current market cap of TON stands at $13.3 billion. Chart: TradingView.com
Challenges with Durov’s Arrest and Other Factors
Analysts suggest that the performance of the network and its associated cryptocurrency, Toncoin, has been influenced by recent troubles faced by Telegram. Pavel Durov and his team are key figures behind the development of both TON and Toncoin. Some believe that Durov’s arrest and a series of network challenges have contributed to the downturn. Conversely, the integration of Alchemy Pay and significant airdrops have managed to foster increased user engagement and price fluctuations.
Toncoin Experiences Minimal Price Movement
The issues affecting the network also extend to the market value of Toncoin, its native cryptocurrency. TON’s drop in user numbers coincides with its token struggling to maintain upward price momentum. As of October 22, Toncoin has been trading in the range of $5.20 to $5.30, having difficulty reaching the $5.6 mark it touched on October 1.
TON price has dropped in the last 24 hours. Source: CoinMarketCap
TON User Activity Reflects Broader Market Trends
The reduction in TON’s active users from more than 5 million to 1.58 million has occurred alongside diminished network activity and uncertainty in the market. Beyond the declining DAU, the network has also witnessed a drop in new and zero-balance addresses, which have fallen to under 650,000 and 68,000, down from prior highs of 2.58 million and 346,000, respectively.
Featured image from Mava, chart from TradingView
