The Open Network (TON) has emerged as a dominant force in the Layer 1 blockchain space. Data from CryptoQuant reveals that TON captured over 50% of all Layer 1 transactions in September. This performance surpasses competitors such as Ethereum and Avalanche.
TON's success is largely attributed to several token launches.
DOGS, a pioneer project on the network, attracted 28 million monthly active users (MAU). Catizen and Rocky Rabbit each garnered 18 million MAU. Watbird and Hamster Kombat further bolstered TON's growth, with 12 million and 110 million MAU respectively.
However, the CryptoQuant analysis excluded Solana, BNB Chain, and NEAR Protocol.
Artemis data, which includes these chains, paints a different picture. Solana maintains its lead in transaction count and daily active wallets. As of September 30, Solana processed over 1.1 billion transactions for the month. It also boasted 3.9 million daily active addresses.
TON, while performing well, has been overtaken by Solana in both categories. TON reached 212.5 million transactions in September, securing second place in transaction volume.
In terms of daily active wallets, TON fell behind both Solana and NEAR Protocol, with 2.1 million daily active addresses.
Bitget, a major investor in the Open Network Foundation, has made bullish predictions for TON. Their September report outlines a potential "de-Telegramization" of the TON ecosystem. This shift is seen as a response to increasing regulatory scrutiny of Telegram.
The arrest of Telegram CEO Pavel Durov on August 25 significantly impacted TON. The TON token price dropped 17.6% in the week following the arrest. TON's total value locked (TVL) also saw a sharp decline, with a single-day drop exceeding 60%.
As of September 30, TON's TVL stands at approximately $427 million. This represents a 45% decrease from its July 2024 peak of $776 million.
Despite these challenges, Toncoin, TON's native cryptocurrency, has shown resilience. It has achieved a 149% return since the beginning of the year, the price rose from $2.27 on January 1 to $5.82 at the time of writing.
In contrast, Bitcoin experienced a more modest 51% increase during the same period. It rose from $43,835 on January 1, 2024, to $64,029 at the time of writing.
Bitget predicts that Toncoin will outperform Bitcoin's spot returns in a bullish market. The report also anticipates increased institutional interest in TON, with many institutions favoring over-the-counter purchases.