The Open Network (TON) blockchain has led to a significant decline in the number of daily active users. As posted on Twitter/X by IntoTheBlockThe TON network currently has 1.58 million active users, down from a maximum number of over 5 million.
The same publication also shared a chart tracking the number of daily active addresses on the network, punctuated by highs and lows that represent bulls, buzz, and market corrections. IntoTheBlock asks: What conditions could trigger the next TON run?
TON’s DAU is down, but does it matter?
IntoTheBlock is just one analytics company that tracks cryptocurrency statistics, including the number of daily active users (DAU). In the fast-growing cryptocurrency industry, DAU is a crucial metric that can describe the status or even future of a cryptocurrency project. We can think of DAU as the number of customers, so a high number of DAU means people are using it, and there is potential for growth.
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 pattern, what do you think will lead to the next TON increase? pic.twitter.com/TURqjjtLiN
— IntoTheBlock (@intotheblock) October 21, 2024
But the latest TON numbers are not promising. According to IntoTheBlock, the network’s DAU count has recently decreased. but, Data from DappRadar It showed increased user activity in early September, partly due to increased interest in cryptocurrency gaming.
This is based on the blockchain gaming scale and covers Dapps on Telegram, such as Yescoin and Catizen. However, after reaching 5 million users on September 27, the number of daily active users dropped to 1.58 million as of October 27.
TON market cap currently at $13.3 billion. Chart: TradingView.com
Arrest of Durov and other cases
Meanwhile, analysts say the network’s performance and Toncoin’s recent market performance are tied to Telegram’s recent releases. Pavel Durov and the Telegram team are behind the development of TON and Toncoin. Some say Durov’s arrest and other issues involving the network contributed to the decline. Meanwhile, Alchemy Pay integration and large airdrops helped increase user activity and drive price action.
Toncoin is also experiencing slow price movement
The network’s problems also extend to the market price of its native currency, Toncoin. TON’s decline in user base comes at a time when its native token is also struggling to maintain upward price momentum. As of October 22, Tonquin It is trading between $5.20 and $5.30, and is struggling to revisit the $5.6 level it reached last October 1.
TON price down in the last 24 hours. Source: CoinMarketCap
TON user activity tracks the industry’s downward and upward cycle
TON’s decline from over 5 million daily users to just 1.58 million users comes amid declining network activity and market uncertainty. In addition to the slowdown in the number of DAUs, the network reported a decline in new addresses and zero balance, which now stand at less than 650,000 and 68,000, from highs of 2.58 million and 346,000, respectively.
Featured image from Mava, chart from TradingView