In a surprising turn of events, Toncoin (TON), the cryptocurrency developed by the popular messaging app Telegram, has seen a significant price surge, briefly outpacing Dogecoin with an 8% rally. The price of TON soared to $2.61 on Gate.io, marking its highest level since February 2022. The bullish trend was further solidified as TON’s market capitalization exceeded $10.5 billion, allowing it to momentarily claim the 10th spot in cryptocurrency rankings, surpassing the fan-favorite Dogecoin (DOGE).
Toncoin’s recent rally can be attributed to several positive developments, including the introduction of a self-custodial digital wallet, TON Space, launched directly on the Telegram app. This feature has significantly contributed to Toncoin’s growing adoption, as it simplifies the process for Telegram’s massive user base to buy, sell, and trade cryptocurrencies.
Faster – Better
Adding to the token’s momentum, the TON Foundation’s announcement of a successful live performance test of the TON blockchain was pivotal. The test, which operated on 256 validators, achieved an unprecedented transaction speed of 104,715 transactions per second (TPS) under heavy load, outperforming major blockchains and centralized payment systems such as PayPal, Visa, and Mastercard. According to an audit by Web3 smart contract auditor CertiK, the TON blockchain reached an average of 78,134 TPS. In contrast, established cryptocurrencies like Bitcoin and Ethereum have only managed to handle 7 TPS and 15 TPS, respectively, while Solana (SOL), known for its speed, typically handles around 4,000 TPS.
The enthusiasm around Toncoin was further fueled by the Dubai International Financial Centre (DIFC) recognizing TON, alongside Ripple’s XRP, for use within its jurisdiction, opening doors for over 4,000 financial entities to adopt these digital assets for transactions and services.
TON Becomes Giveaway Central
Moreover, the cryptocurrency’s profile received a boost from Pavel Durov, Telegram’s founder, who announced his purchase of $200,000 worth of Toncoin to gift 10,000 premium subscriptions to random subscribers of his channel. This move coincided with the launch of “Giveaways” on Telegram, a feature that allows channel owners to distribute prizes among their followers, and showcased TON’s utility within the platform’s ecosystem.
Since the launch of Giveaways and the subsequent public purchase by Durov, TON’s price has rallied by 19.5%, touching $2.71, its highest in 11 months, and signaling a strong buying interest reflected in increased trading volumes.
Hawks vs Doves
However, despite the positive developments and the rising price, technical analysis suggests that Toncoin might be entering overvalued territory. TON’s daily relative strength index (RSI) has crossed into the overbought region above 70, historically leading to price corrections. Additionally, TON faces a significant resistance range between $2.60 and $2.70, which has previously prompted price reversals. A bearish reversal could see the price dip to $2.22, aligning with its first-quarter 2023 support line and the 50-day exponential moving average (EMA).
In contrast, if TON can sustain a decisive close above its current resistance, the next target for the cryptocurrency could be as high as $2.92. This level of bullish performance would further cement Toncoin’s position in the market and potentially attract even more investors looking for high-performance blockchain solutions.
The future of Toncoin seems to be at a potential inflection point. While it enjoys widespread adoption thanks to its integration with Telegram and strategic partnerships, it must navigate the technical challenges that come with rapid price increases. The cryptocurrency community will undoubtedly keep a close watch on TON as it attempts to balance its promising technological advancements with the volatile nature of crypto markets.
How to buy Toncoin (TON)?
Toncoin (TON) can typically be purchased on various cryptocurrency exchanges that support the token. However, to find the most current and accurate information on how to buy Toncoin, you can head to dedicated walkthroughs that take you from basics to actually buying the token in a safe way.
What is TON Network?
The TON (Telegram Open Network) has been engineered to address the scalability and speed issues that have long plagued legacy blockchains. With its goals set ambitiously high, TON aims to create a multi-blockchain architecture that could potentially process millions of transactions per second, thanks to its unique dynamic sharding mechanism. The network’s underlying infrastructure is designed to facilitate not just transactions but also smart contracts and decentralized applications (DApps) with the ease of speed and efficiency. The TON Foundation, which took over the project after Telegram stepped back due to regulatory challenges, envisions a network that empowers users with fast, secure, and user-friendly applications.