Toncoin has just surged into the top 10 coins by market cap.
With access to 1 billion monthly telegram users and a lightning fast blockchain, it could be the dark horse of this bull run.
Here's your full deep dive + project scorecard for $TON.🧵
Here's what we'll cover:
Overview
Use Case
Adoption
Revenue
Tokenomics
Treasury
Governance
Team & Investors
Competitors
Risks & Audits
Summary
Note: I am NOT an advisor or ambassador of Toncoin.
The Open Network (TON) is a Layer 1 blockchain solution that blends PoW & PoS.
In May 2020, the project faced near death but survived with an $18.5m SEC settlement.
To preserve the technology, all coins were placed in smart contracts for equal mining opportunities, termed IPoW.
The project now uses a Proof of Stake (PoS) consensus mechanism, with validators securing the network.
TON boasts a vibrant ecosystem with over 708 apps that tap into Telegram's extensive user base, including:
Games
Wallets
Exchanges
Dating
Gambling
Messaging
@ton_blockchain recently announced its support for native $USDT, enabling any of Telegram's 900 million users to transfer payments as easily as sending a message.
This milestone is not only crucial for TON but also for the worldwide adoption of blockchain technology.
TVL on TON has surged to $204m, marking a 15x increase from the beginning of 2024 ($13.5m).
The leading dApps by total TVL include:
Tonstakers (Liquid Staking)
STONfi (DEX)
bemo (Liquid Staking)
DeDust (DEX)
Stakee (Liquid Staking)
Storm Trade (Derivatives)
Over the past 30d, TON has generated some impressive numbers:
$3.85m in fees
$1.92m in revenue
Token Terminal defines these metrics as follows:
Revenue: share of transaction fees that are burned (accrue to TON holders).
Fees: total transaction fees paid by users.
Toncoin ($TON) is the native token of the blockchain. Demand comes from various sources:
Network operations
Transactions
Games
Collectibles/ NFTs
The initial supply of $TON was 5b coins. Supply is not capped and will inflate at approximately 0.6% per year.
These created tokens are used to reward validators for keeping the network secure. You can currently earn about 3.48% APY for staking.
Current supply stats:
Circulating supply: 3.47b
Total supply: 5.1b
Market cap: $20.5b
FDV: $30.2b
Market cap/FDV: 68%
Despite the lack of specific details on TON Foundation's total treasury holdings, they likely hold a significant amount. There are multiple grants programs, bounties and funds, including:
$115m for The Open League Season 1 rewards
$250m TONcoin investment fund
In 2023, TON Foundation and Orbs launched the governance forum TON(.)Vote to facilitate transparent decentralised governance on the network. There have been several key proposals approved so far:
Freeze inactive mining wallets for 4 yrs
Burn 50% of all transaction fees
Toncoin has raised over $24m from investors, including Pantera Capital, with undisclosed rounds potentially pushing the total even higher.
The project has also set up a $250m Toncoin fund to support teams developing on TON.
The Layer 1 space in crypto is highly competitive, with hundreds of projects launching blockchain solutions to gain an edge.
@ton_blockchain stands out for its ability to tap into the nearly 1 billion Telegram users and offer easy access to decentralised finance solutions.
TON has achieved an impressive CertiK score of 92.35, placing it 29th among all cryptocurrencies assessed by the company. It demonstrates excellence in Code, Community, and Market categories.
In 2023, CertiK, an auditing and security company, officially partnered with Toncoin.
Overall, I am pretty bullish on @ton_blockchain . They have crept into the top 10 recently and their DeFi ecosystem is growing rapidly.
Upcoming catalysts:
USDT payments on telegram
The Open League community rewards
Telegram app flywheel
Overall weighted score = 8.75