With the support of 800 million Telegram users, what is the current development status of the TON ecosystem?

What is the current status of the TON ecosystem with 800 million Telegram users' support?

TON, backed by Telegram’s 800 million users, has a great imagination for its ability to go mainstream, directly solving the problem of how to make it easier for ordinary users to adopt other public chains.

Author: JZ, Founder of JZ Invest

TON has skyrocketed against the market trend and quietly become the tenth largest token by market capitalization. Is it still worth expecting future gains? Or is the bubble about to burst?

To quickly understand the relationship between the value and price of a project, you can compare “Market Cap / TVL”.

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TON’s market capitalization is very high compared to TVL because the market capitalization has recently risen in a straight line, but the on-chain ecosystem is still trying to keep up.

To understand the ceiling of the ecosystem’s development, the fundamentals of a public chain determine a large part of it.

TON is an L1 public chain that aims to establish a complete blockchain ecosystem.

To quickly understand TON’s positioning, let’s directly compare it with ETH and SOL, two other L1 chains—TON outperforms its competitors in block processing time and difficulty.

While ETH is still thinking about Layer2 and scaling solutions, TON is already waiting for Ethereum at the finish line.

But it must be noted that when Solana first appeared, its fundamentals were also the strongest at the time, not only fast in speed but also with Gas fees so cheap that they could almost be ignored.

However, as usage increased, various problems began to emerge, and even multiple instances of downtime occurred, so the future still needs to undergo stress testing to truly verify whether TON is as powerful as the data suggests.

Although it was only officially announced this month that Telegram and TON are working together to launch a wallet, the two have actually been connected for a long time. In 2018, Telegram planned to issue its own token, GRAM, but was accused by the SEC of illegal fundraising the following year.

Telegram was forced to abandon the project, which was taken over by the TON Foundation for development, and only recently did the two reunite in the form of “cooperation”.

TON has an initial total supply of 5 billion tokens, of which 1.45% is allocated to the team.

Currently, the operating mode is similar to ETH, giving TON to PoS miners as rewards, with an annual inflation rate of about 0.6%.

What’s special is that TON started mining in June 2020 using the PoW method, accounting for 98.55% of the total supply, and the last TON was mined in June last year.

In February of this year, TON initiated a community proposal to freeze 1.08 billion TON in 171 inactive early wallets. The advantage is that there is no need to worry about early investors unlocking tokens and causing a sell-off.

The disadvantage is that the token distribution is not very decentralized, with the top ten addresses (excluding official ones) holding about 26% of the total TON supply.

According to statistics from http://ton.app, there are currently 551 apps in the ecosystem, but most of them are not financial DeFi products.

Currently, only 7 of them are listed on DefiLlama, and the top-ranked DEX MegatonFi has a TVL of only $4.8 million.

Public chain ecosystems often start with financial infrastructure such as DEX, Lending, and stablecoins, but TON has not yet had very innovative protocols.

TON has the support of Telegram’s 800 million users, and the ability to go viral has huge potential. It directly solves the problem of how to make ordinary users adopt other public chains.

However, there is still a lot of room for development in the ecosystem. If there are no major innovative projects, TVL may lag behind market value, and the token price may start to return to the level that matches TVL.

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