Ethereum’s comparative underperformance relative to TON can be attributed to several factors, notably the migration of a significant portion of its user activity to layer 2 scaling solutions. These solutions were not factored into the comparison with TON.
During a week marked by global crypto market fluctuations and cautious investor sentiment, The Open Network (TON), backed by Telegram, has seen substantial growth in user activity, surpassing Ethereum in daily active users.
Since the beginning of the month, TON and Ethereum have been closely vying for user engagement. However, leveraging Telegram’s extensive user base of 900 million, TON has consistently outpaced Ethereum for ten consecutive days starting June 1.
On June 3, TON achieved a significant milestone with 568,300 daily active addresses (DAAs), according to Artemis data. In contrast, Ethereum has not reached this level of activity since September 13, 2023.
Delving Deeper
Ethereum’s apparent lower activity compared to TON can be attributed to various factors, including the adoption of layer 2 scaling solutions designed to enhance transaction throughput and reduce fees by processing transactions off the main Ethereum blockchain.
Consequently, the majority of Ethereum’s transactional activities have shifted to these layer 2 networks.
For instance, on June 11, the top three Ethereum layer 2 networks—Arbitrum, Base, and Optimism—collectively registered 1.3 million daily active addresses. This highlights that while Ethereum’s primary network may appear less active, substantial transactional volume is occurring on these secondary layers.
New Milestones and Market Performance
Despite the challenges of comparing directly with Ethereum, TON has demonstrated significant growth. Amidst the recent global market volatility, the network’s native token, Toncoin (TON), reached a milestone of $7.76 earlier this month, marking its highest valuation since launch.
Although Toncoin has since experienced a decline of over 12%, industry analysts remain optimistic about its future trajectory.
A pseudonymous analyst, “Crypto King,” has forecasted a potential rise to $10 for TON in the near term, citing its robust user base, rapid infrastructure development, and Telegram’s support.
Another expert, Alex Clay, shares this positive outlook, suggesting short-term price targets of $10.5 to $11.6 for TON despite broader market downturns.
Furthermore, data from Token Terminal indicates promising long-term indicators for TON, showing a 3.6% rise in fully diluted market capitalization, a 76.3% increase in token holders, and a 26.0% growth in revenue and fees over the past 30 days.
Despite a slight decrease in trading volume by 11.6%, these metrics underline a strong underlying growth trend for TON.
Source: coinspeaker.com
