Toncoin’s value has experienced a notable 5% surge within a day, making it a standout performer when compared to its counterparts in the expansive crypto domain. Since early August, TON’s popularity has been on an upward trajectory, placing it in the world’s top 10 based on market capitalization.
We embark on a mission to see through the lines and forecast what does TON price has in store. Will it carry on rising, boosted by its big messenger brother, or will it just be there, without much use like so many other network tokens in the crypto universe?
The Relationship Between Toncoin and Telegram
Originating as the primary currency for The Open Network (TON) – a decentralized blockchain system conceived by Telegram in 2018 – Toncoin has deep ties with the well-known messaging service. Originally, Telegram aimed to incorporate a TON-centric crypto wallet into their platform in 2019. However, legal challenges from the SEC regarding Toncoin’s whopping $1.7 billion ICO led to a hiatus in the partnership.
But the story didn’t end there. While separated from Telegram, Toncoin thrived under the aegis of the TON Foundation in Switzerland. The previous month witnessed Telegram championing TON as its preferred network for Web3, incorporating the TON Wallet for its vast 800 million user base. This backing from Telegram bolstered Toncoin’s stature, shining a spotlight on its developmental potential.
Even with Toncoin and Telegram operating as distinct entities, this rejuvenated partnership has paved the way for exciting opportunities for both platforms.
Toncoin’s Recent Bullish Trend
After a period of unremarkable performance, TON price displayed remarkable momentum by climbing 13% in a mere three days as witnessed on major crypto exchanges like Gate.io. At present, its value hovers around $2.056, reflecting some loss from its earlier surge. Additionally, there’s been a 205% surge in trading volume over a day, hinting at a revived interest in Toncoin.
While the coin is yet to surpass the minor resistance of $2.170, the current price upliftment fosters hope for a potential upswing, rekindling investor enthusiasm.
Current Stance of TON Price
In the recent trading session, Toncoin’s performance remained strong, maintaining its position above the $2 mark. After dipping to $1.94 earlier this week, the token peaked at $2.02 today, matching its previous high from the last week. The current momentum, although positive, requires a push beyond the present resistance level of the RSI, currently at 49.24, to effect a significant breakout.
Other Cryptocurrencies: A Brief Mention
In contrast, Cardano (ADA) experienced a decline for the first time in four sessions as traders decided to cash in on recent profits. ADA’s value decreased to a low of $0.2472 today, down from its previous high of $0.253. After failing to break the $0.255 resistance, ADA seems to be heading towards the $0.240 support, which has been consistent over the past quarter. The 10-day and 25-day moving averages crossing paths also seem to be influencing this drop.
A Brief History of TON
Back in 2018, Telegram unveiled plans for its layer-1 blockchain, dubbing it the “Telegram Open Network.” This network’s digital currency, named ‘Gram,’ was engineered to handle transaction fees, process payments, and authenticate transactions within the system.
This initiative garnered significant attention, notably when it shattered records by amassing a staggering $1.7 billion in a token sale. This feat placed it second only to EOS’s monumental $4 billion ICO. Yet, in a surprising twist, Telegram decided to step back from the project a mere two years later. So, what transpired?
Developed by the Durov siblings, Nikolai and Pavel, TON is based on a proof-of-stake mechanism and employs sharding to address some scalability challenges encountered in platforms like Bitcoin. TON aspired to forge a robust framework of decentralized solutions, spanning decentralized storage, a domain naming system, a privacy-centric network, instantaneous payments, and rapid transaction handling.
Under the guidance of the Durov brothers and Telegram’s adept engineering squad, TON was nearing its launch. However, the U.S. Securities and Exchange Commission (SEC) stepped in, causing a significant disruption.
Despite Telegram’s efforts to liaise with U.S. regulatory bodies for its token rollout, the SEC viewed the project’s backers as underwriters. This perception meant that Telegram’s distribution of Gram was deemed an unregulated securities offering.
Undeterred, Telegram contested this judgment. Yet, in 2020, Pavel Durov publicly declared Telegram’s withdrawal from the project’s development, initiating refunds to investors. It was at this juncture that the community intervened.
Community’s Involvement and TON’s Evolution
Thanks to TON’s open-source codebase, readily available on GitHub, developers worldwide could engage with its evolution. A collective of dedicated developers, including software maestro Anatoliy Makosov and esteemed programmer and Ph.D. holder in Physics and Mathematics, Kirill Emelianenko, decided to advance TON’s mission.
Subsequently, the TON Foundation, a nonprofit consortium of enthusiasts, rebranded the initiative as “The Open Network” while preserving the iconic TON acronym, which now represents Toncoin.
Toncoin’s Dynamics
Toncoin is capped at a total supply of 5 billion, with a current circulation of about 3.4 billion TON. Validators are compensated in TON tokens for their contribution to network upkeep, and an inherent annual inflation rate of 0.6% has been instituted by the Foundation.
Beyond serving as a currency for Telegram-associated services, Toncoin also empowers its holders with a voice in the network’s trajectory. Given that The Open Network functions as a decentralized autonomous organization (DAO), token holders possess the authority to vote on potential amendments to the blockchain or its wider ecosystem.
