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

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

Author: JZ, Founder of JZ Invest

TON has skyrocketed against the bear market 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 correlation between the value and price of a project, you can compare “market capitalization / TVL”.

TON’s market capitalization is very high compared to TVL because its market capitalization has recently risen sharply, but the on-chain ecosystem is still trying to catch up.

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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 scalability solutions, TON is already waiting for Ethereum at the finish line.

However, it should be noted that when Solana first appeared, its fundamentals were also the strongest at that time. Not only was it fast, but the gas fees were so cheap that they could be almost ignored.

But as usage increased, various problems began to emerge, and there were even multiple instances of downtime. Therefore, it still needs to go through stress testing in the future to truly verify whether TON is as impressive as the data shows.

Although Telegram officially announced its collaboration with TON to launch a wallet this month, the two have been closely related for a long time. In 2018, Telegram planned to issue its own token, GRAM, but it was accused of illegal fundraising by the SEC the following year.

Telegram was forced to abandon the project, and TON Foundation took over the development. Only recently did they reunite in the form of “collaboration”.

TON initially has a total supply of 5 billion, of which 1.45% belongs to the team.

Currently, the operating mode is similar to ETH, where TON is given to PoS miners as rewards, with an inflation rate of about 0.6% per year.

What’s special is that TON started mining with PoW in June 2020, 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, freezing 1.08 billion TON in 171 inactive early wallets. The advantage is that there is no need to worry about early investors unlocking their tokens and causing a sell-off.

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

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, there are only 7 projects listed on DefiLlama, and the top-ranked DEX, MegatonFi, has a TVL (Total Value Locked) of only $4.8 million.

Public blockchain ecosystems often start their development with financial infrastructure such as DEX, lending, and stablecoins. However, TON has yet to see very innovative protocols.

TON, backed by Telegram’s 800 million users, has great potential for gaining popularity, and there is a lot of room for imagination in its narrative. It directly solves the problem that other public chains face in terms of how to make it easier for regular users to adopt.

However, there is still a lot of room for development in the ecosystem. If major innovative projects do not appear, TVL may lag behind market value, and the token price may start to return to a level that aligns with TVL.

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