In recent months, the broader cryptocurrency market has experienced significant pessimism, particularly in the altcoin sector. With Bitcoin's instability, many alternative cryptocurrencies have seen drastic declines, with numerous projects losing over half of their value.
Amid this downturn, the TON ecosystem has demonstrated remarkable resilience. Over the past 30 days, TON's price has increased by 23%, and its Total Value Locked (TVL) has surged sixfold since March. Projects within the ecosystem, such as Notcoin, have also seen substantial growth in both user base and token value. Is the TON ecosystem entering a bullish phase?
Key Drivers Behind TON’s Growth
TON’s unique advantage lies in its association with Telegram, which boasts over 900 million active users. However, critics have previously pointed out the lack of deep integration between Telegram and TON, labeling TON as lacking tangible utility.
This perception has shifted significantly since the beginning of this year.
From March to the present, TON’s TVL has grown from under $23 million to $145 million—a sixfold increase. During the same period, the price of TON has tripled, remaining robust even during the recent market correction. What factors are driving this growth?
TON for Telegram Ad Payments
Unlike platforms like Facebook or WeChat, Telegram has long prioritized user privacy, avoiding targeted advertising based on user data. This approach limited its revenue streams for years.
Recently, however, Telegram introduced an ad platform that doesn’t rely on user data tracking, alongside premium subscription services. These have become Telegram’s primary revenue sources.
In February, founder Pavel Durov announced that Telegram’s ad platform—generating over a trillion monthly impressions—would become available to advertisers in nearly 100 countries starting in March. Crucially, all advertising revenue would be settled in TON, with channel owners receiving 50% of the earnings.
This move represents a significant step toward real-world utility for TON. Previously, TON was used mainly for transaction fees, staking, and cross-chain operations—similar to other blockchain networks but on a smaller scale. Its use cases were limited, even with the ability to purchase virtual goods like anonymous Telegram accounts.
By making TON the exclusive settlement currency for Telegram’s ad system, TON is now directly empowered by Telegram’s massive user base. This deep integration elevates TON’s potential and market value.
To prevent excessive centralization of TON tokens, Durov also announced plans to sell over 10% of the team’s TON holdings to long-term investors with lock-up periods of 1–4 years. This approach reduces circulating supply while promoting decentralized ownership.
Introduction of TON Space
Launched in September 2023, TON Space is a self-custody wallet integrated within Telegram. Unlike the earlier KYC-bound Wallet, TON Space allows users to manage their private keys and interact seamlessly with TON-based applications.
This integration enables users to access DeFi, GameFi, and NFT services directly through their Telegram accounts, significantly reducing the barrier to entry for Web3 activities.
Mini-App Ecosystem
Telegram has also been promoting mini-apps—lightweight applications that operate within the platform, similar to WeChat’s mini-programs. These apps leverage Telegram’s vast user base and integrated wallet functionality.
A notable example is Notcoin, a "click-to-earn" game that quickly attracted over 40 million users. With official support from Telegram, numerous similar Web3 mini-apps have emerged, creating new engagement models beyond traditional play-to-earn mechanisms.
These developments reflect Telegram’s strategic push into Web3, closely aligned with TON’s growth. The partnership appears mutually beneficial, offering Telegram new revenue streams beyond ads and subscriptions.
Major Projects in the TON Ecosystem
According to Ton.app, the ecosystem currently includes 874 projects. While this number is modest compared to Ethereum or Solana, the ecosystem has grown nearly 60% in the past eight months, with TVL increasing dramatically.
Here are some of the most notable projects in the TON ecosystem:
- Notcoin: A click-to-earn game and one of the most popular Web3 apps on Telegram, with over 40 million users. Despite being criticized as a memecoin due to its limited utility, NOT has performed well after listing on major exchanges.
- Catizen: The largest gaming platform on Telegram, with over 20 million users and 500,000 paid subscribers. It consistently ranks first in the TON Open League.
- Hamster Kombat: Another play-to-earn game that has gained traction due to airdrop expectations. It boasts over 150 million active users, growing 50% in just one week.
- Gamee: A social gaming platform under Animoca Brands, remaining popular despite a recent security breach.
- PocketFi: A Telegram trading bot supporting cross-chain transactions. It gained 1.4 million users within three months of launch.
- Blum: A decentralized exchange (DEX) within Telegram, though currently focused on reward mining games. It has attracted over 10 million users and is backed by former Binance executives.
- Yescoin: A Notcoin-inspired game with over 18 million users and rapid growth.
- DeDust & Ston.fi: Leading DEXs in the TON ecosystem, with TVLs of $320 million and $260 million, respectively.
- Uxlink: A social infrastructure project based on Telegram, with over 10 million registered users. It has received investments from major funds like Sequoia and ZhenFund.
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Challenges and Considerations
Despite strong performance, the TON ecosystem faces challenges. The number of full-time developers working on TON is only 39, with 175 total developers—far fewer than Ethereum’s 2,392 or Solana’s 436.
Security is another concern. Telegram’s history of account breaches, combined with the integration of Web3 wallets, increases risks related to phishing and hacking. This is particularly relevant for new users who may lack security awareness. As a relatively new blockchain, TON must also prove its resilience against attacks.
These issues are not unique to TON; the entire Web3 industry is evolving through iterative improvements. With continued development and adoption, many of these challenges can be addressed over time.
Frequently Asked Questions
What makes TON different from other blockchains?
TON is closely integrated with Telegram, giving it access to over 900 million active users. This relationship allows for seamless user onboarding and unique use cases like ad revenue settlements and in-app mini-programs.
How can users participate in the TON ecosystem?
Users can start by setting up a TON Space wallet within Telegram. From there, they can explore games, DeFi protocols, and other apps directly through the platform.
Is TON secure for everyday users?
While TON incorporates standard blockchain security features, users should exercise caution—especially regarding phishing attempts and wallet management. Telegram’s widespread use makes it a target for scams, so vigilance is essential.
What is the future outlook for TON?
With strong institutional support and growing adoption, TON is well-positioned for further expansion. However, its success depends on addressing developer engagement and security challenges.
Can TON compete with Ethereum or Solana?
TON offers distinct advantages in user accessibility and integration with Telegram. While it may not replace Ethereum or Solana, it carves out a unique niche in social finance and mass-market Web3 applications.
How does TON generate value for holders?
TON is used for transaction fees, staking, and governance within its ecosystem. Its utility is enhanced through Telegram’s ad settlement system, which creates consistent demand.