Tonchain’s daily active users are decreasing as interest in Telegram crypto subsides, falling from over 5M to 1M users as the excitement surrounding Hamster Kombat (HMSTR) dwindles. Will the TON price react similarly?
Following Ethereum, BNB Chain, and Solana, we see Tron and then Tonchain emerging.
Here’s the takeaway: Ethereum has capitalized on its first-mover advantage, resulting in a robust ecosystem. Solana is touted as the enhanced version of Ethereum, while BNB Chain is backed by crypto powerhouse Binance.
Tron has transformed from a gaming platform to a hub for stablecoin transactions and now focuses on meme coins. Next in line is Tonchain and Toncoin.
TON Price Faces Challenges: Tonchain Grows but User Base Shrinks
It’s worth noting that Toncoin encountered hurdles before arriving at its current state. The connection to Telegram was a major concern in the past, which is why the Tonchain public ledger operates on a non-profit model.
Telegram continues to play a significant role in attracting external supporters, allowing Tonchain to essentially “harvest” many users.
The challenge lies in the fact that Bitcoin and crypto prices, aside from notable quality meme coins such as GOAT and Pepe Unchained, are struggling to find momentum.
Toncoin has not been exempt from this trend.
Following its debut on Binance, a short-lived surge pushed prices to all-time highs. However, TON price has since declined, falling -40% from its recent peak.
(TONUSDT)
In further disappointing news: The Tonchain excitement is fading, and TON may face additional challenges.
Here’s why. According to data from IntoTheBlock, the numbers indicate a troubling drop from a peak of five million daily active users down to a mere 1 million.
What’s Happening With TonChain?
This is, by any measure, a substantial decline.
So, what’s the situation? Could it be attributed to the tumultuous market conditions?
The reality is that many users are opting to withdraw their TON assets as enthusiasm for mini apps fades.
In early Q3, tap-to-earn games like Notcoin and Hamster Kombat attracted hundreds of thousands, if not millions, of users on a daily basis.
Per DappRadar, Hamster Kombat executed only ten transactions on the last day while drawing just 13 users.
(Source)
Players were eager to receive airdrops. However, their tokens didn’t soar as anticipated.
The outcome? A large number of airdrop recipients decided to exit and abandon the Tonchain ecosystem entirely.
While these games are still available, they lack the previous excitement as evidenced by the current figures.
Pavel Durov’s Arrest Has Impacted TON’s Progress
Moreover, Pavel Durov’s arrest has left a mark.
Indeed, TON managed to withstand the FUD and stabilized following Durov’s extended detention in France.
When Durov was detained, many viewed it as a direct attack on free speech, something Telegram stands for.
With this event, many believe that authorities—beyond France—are pressuring Durov, Telegram, and its leadership to censor users—and this is highly concerning.
Given this revelation, Telegram may not be as private as it claims, which may contribute to Tonchain’s user decline. This is a key factor in the rapid drop in daily active users.
DISCOVER: The Top Telegram Meme Coins to Invest in 2024
Will TON Price Rebound? The TonCoin Team Is Making Progress
Despite the challenges, it’s not all bad news.
TON is resilient and may rise during this “Uptober” and for significant parts of Q4 2024, assuming Bitcoin behaves.
Moreover, Toncoin is actively enhancing its ecosystem, as seen from the USDT TVL and numerous partnerships.
(Source)
Recently, the team announced improvements to the Symbiosis TON Bridge, which will enable USDT on Tonchain to be accessible across over 34 networks.
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