TON Surpasses Ethereum in Daily Active Users: Here’s Why

Key Takeaways:

• TON Surpasses Ethereum in Daily Active Addresses: The Open Network (TON) has consistently outpaced Ethereum in daily active addresses for 10 of the last 11 days in June 2024.
• Impact of Telegram’s User Base: TON price growth is driven by Telegram’s vast 900 million user base, significantly contributing to its increased daily active addresses.
• Ethereum Layer 2s Excluded: The comparison doesn’t account for Ethereum’s layer 2 scaling solutions, where much of Ethereum’s user activity now takes place, making the comparison potentially misleading.
• Recent Activity Boost on TON: The rise in TON’s network activity is linked to recent developments like the integration of Tether (USDT) and the introduction of Notcoin, a tap-to-earn token on Telegram.
• New In-App Currency: Telegram introduced Telegram Stars on June 6, an in-app currency that can be used for digital purchases, further enhancing user engagement and activity on TON.

In recent weeks, Telegram’s blockchain, The Open Network (TON), has outperformed Ethereum in terms of daily active addresses. According to data, TON has surpassed Ethereum in daily active addresses on 10 out of the last 11 days. This milestone has sparked interest and speculation within the crypto community. However, the story isn’t as straightforward as it seems, especially when considering the broader Ethereum ecosystem, including its Layer 2 solutions.

The Flippening CT ignores 🔍

TON’s quiet growth, fueled by Telegram’s 900M user base, has driven its daily active addresses above Ethereum.

At its core, TON is a bet on Telegram’s distribution. Though the ecosystem is nascent, its early growth is promising. But is it enough? pic.twitter.com/k2b2SMiQJD

— Delphi Digital (@Delphi_Digital) June 10, 2024

TON’s Rise to Prominence

TON’s recent success can be attributed to the substantial user base provided by Telegram, which boasts 900 million users globally. Delphi Digital highlighted this trend, referring to it as “The Flippening CT ignores.” They emphasize that TON’s growth is largely driven by Telegram’s expansive distribution network. This network effect has allowed TON to achieve significant daily active address (DAA) counts, surpassing Ethereum’s main chain in most of June.

Data from Artemis indicates that TON and Ethereum have been closely competing since mid-May, with TON initially surpassing Ethereum on May 17. The competition intensified, and by early June, TON consistently led in DAA, peaking at 568,300 on June 3. For context, Ethereum hasn’t reached such numbers since September 2023.

Read More: Toncoin Price Prediction

The Layer 2 Factor

While TON’s achievements are impressive, it’s crucial to consider the broader context of Ethereum’s ecosystem. Many of Ethereum’s transactions now occur on Layer 2 solutions designed to improve scalability and reduce congestion on the main chain. This shift means that the comparison between TON and Ethereum’s main chain might not fully reflect the user activity across Ethereum’s entire network.

For instance, on June 11, Ethereum’s top three Layer 2 solutions—Arbitrum, Base, and Optimism—collectively recorded 1.3 million daily active addresses. This figure dwarfs TON’s DAA, indicating that Ethereum’s user base is highly active, albeit across multiple layers rather than solely on the main chain.

Ethereum co-founder Vitalik Buterin has long advocated for using Layer 2 solutions to scale the network efficiently. This approach is a core part of Ethereum’s roadmap, emphasizing the importance of considering Layer 2 activity when assessing Ethereum’s overall user engagement.

Learn More: Ethereum Price Prediction

Factors Driving TON’s Activity

Several factors have contributed to the recent increase in activity on the TON network. One significant driver is the integration of the Tether (USDT) stablecoin on TON, which has facilitated easier transactions for users.  Telegram’s introduction of the Notcoin, a “tap-to-earn” token launched five months ago, has attracted 35 million users. Notcoin incentivizes users through social challenges, further boosting engagement on the network.

Moreover, on June 6, Telegram introduced Telegram Stars, an in-app currency for digital purchases, likely contributing to the uptick in network activity. The popularity of Telegram trading bots also plays a role, providing users with automated trading options directly within the messaging platform.

While TON’s recent performance in daily active addresses is noteworthy, it’s essential to view these numbers within the context of the entire Ethereum ecosystem. Ethereum’s Layer 2 solutions significantly impact overall user activity, making direct comparisons to TON’s main chain somewhat misleading.

Nonetheless, TON’s growth, driven by Telegram’s vast user base and innovative integrations, demonstrates its potential within the crypto space. As both networks continue to evolve, it will be interesting to see how they adapt and compete in the ever-changing landscape of blockchain technology.

Source: CoinTelegraph