Designed by messaging app behemoth Telegram, Toncoin is causing waves in the bitcoin scene. Leading crypto analysis tool CryptoQuant just released a study showing Toncoin as one of the blockchain networks with quickest growth. Although well-known heavyweights like Bitcoin rule supreme in daily transaction volume, TON’s growth indicators show a striking image of a network ready for a breakout.
Transaction Velocity: A David-Vs-Goliath Story
TON’s daily volume lies between $5-$10 billion whereas Bitcoin handles an amazing $50 billion in transactions daily. This initially seems to fit a David-and– Goliath story. One important consideration, though, is TON is only four years old—a tiny pup in comparison to Bitcoin’s seasoned presence. Given a young network, this fast rise in transaction volume points to a growing need for TON’s capabilities—especially for enabling significant digital asset transfers.
On-chain metrics of $TON are going parabolic!
“The transfer volume ranges between $5.0B ~ $10.0B. For comparison, #Bitcoin‘s average daily transfer volume is around $50.0B. This indicates that #TON has already achieved between 10% Bitcoin’s capacity.” – By @JA_Maartun
Read… pic.twitter.com/56VjsAGOwL
— CryptoQuant.com (@cryptoquant_com) June 20, 2024
TON coin holders have increased 10 times over the past year, rising from 2.9 million to over 30 million according to crypto research. This increase in user acceptance points to a developing network confidence and might open the path for a more strong and lively TON ecosystem. Greater user base results in more developer talent, more chances for innovation, and finally a stronger network effect drawing even more users.
TON’s special edge comes from its relationship to Telegram, one of the most often used messaging programmes worldwide with about 900 million users. For the acceptance of cryptocurrencies, this integration might completely transform things.
Challenges Ahead For Toncoin
Still, there are obstacles to go past. The legal environment around cryptocurrencies is still complicated, hence TON will have to negotiate obstacles if it is to reach general acceptance. Furthermore unresolved are issues about the TON network’s scalability. Can it manage the enormous user flood that integration of Telegram would cause?
As TON shows remarkable user and transaction volume, its token price has not exactly matched this excitement. TON dropped 0.5% last 24 hours and 10.4% over the past week.
Featured image from California Business Journal, chart from TradingView