Bitrabo Editorial
The Open Network (TON) blockchain has seen a notable decline in its daily active users. Recent statistics shared by IntoTheBlock indicate that TON now has 1.58 million active users, a significant drop from its previous peak of over 5 million.
Along with this information, IntoTheBlock provided a chart illustrating the fluctuations in daily active addresses on the network, highlighting the correlation between these changes and various market cycles. The firm raises the question: what factors could ignite TON’s next rise?
Is TON’s Declining DAU Concerning?
IntoTheBlock is among several analytics firms that examine crypto data, focusing on daily active users (DAU), which is an essential metric in the rapidly evolving crypto landscape. A higher DAU resembles a broader customer base, indicating user engagement and potential for expansion.
The TON network currently has 1.58 million daily active users, down from its peak of over 5 million
The chart below shows a history of sharp increases, driven by major events or hype cycles.
Given this trend, what do you think will trigger TON’s next surge? pic.twitter.com/TURqjjtLiN
— IntoTheBlock (@intotheblock) October 21, 2024
Recent statistics for TON do not look favorable. IntoTheBlock reports a decline in the DAU numbers. In contrast, DappRadar noted a rise in user activity earlier in September, influenced by heightened interest in crypto gaming.
This increase is based on metrics from blockchain gaming and includes decentralized applications (DApps) on Telegram such as Yescoin and Catizen. Nonetheless, after peaking at 5 million users on September 27, the DAU has dropped to 1.58 million by October 27.
Impact of Durov’s Arrest and Other Challenges
Analysts suggest that the challenges faced by the network and the performance of Toncoin in the market are closely linked to Telegram’s recent troubles. Pavel Durov and the Telegram team oversee the development of both TON and Toncoin. Some analysts posit that Durov’s arrest and associated issues have contributed to the decline. Conversely, integrations like Alchemy Pay and significant airdrops have provided a temporary boost in user engagement and price movements.
Toncoin Faces Stagnation
The troubles extend to Toncoin, the network’s native cryptocurrency, which has also experienced a downturn in price. The decrease in active users coincides with Toncoin’s inability to maintain upward price momentum. As of October 22, Toncoin is trading between $5.20 and $5.30, struggling to reach the $5.6 mark achieved on October 1.
Summary of TON’s User Trends and Market Conditions
The fall in TON’s daily user count from over 5 million to just 1.58 million reflects diminished network activity amidst market uncertainties. Furthermore, recent data indicates a decline in both new and inactive accounts, with numbers dropping to below 650,000 and 68,000, respectively, from highs of 2.58 million and 346,000.
Featured image from Mava, chart from TradingView