• Tue. Jun 25th, 2024

Toncoin’s Price Surges 6% as Telegram Introduces Stars Withdrawal

Steve Kornacki

BySteve Kornacki

Jun 7, 2024
Toncoin's Price Surges 6% as Telegram Introduces Stars Withdrawal

Toncoin (TON) has experienced a significant price surge, rising by 6.5% to $7.65. This price increase coincides with Telegram’s announcement that users can utilize Stars in Toncoin. Stars is the network’s new in-app currency. This integration has sparked considerable interest and activity within the cryptocurrency market.

Introducing Stars Withdrawal

Telegram CEO Pavel Durov announced the introduction of Stars, an in-app currency designed to facilitate the purchase of digital goods and services across all mini-apps on the Telegram platform. Stars can be purchased using fiat currency through in-app purchases on iOS and Android devices.

Users can then use Stars to buy digital products within Telegram mini-apps. This new feature is expected to attract over 900 million potential customers to the platform. One key aspect of this latest development is that developers on Telegram can withdraw their Stars in Toncoin.

These transactions will be handled on Fragment by the network, Telegram’s marketplace for in-app usernames and advertisements. Developers and vendors can use the Telegram Wallet app to exchange their TON for other cryptocurrencies, including USDT.

Toncoin Whale Activity Soars

This integration has contributed to a significant increase in Toncoin’s market activity. Analyst Ali Martinez reported a notable spike in Toncoin whale transactions, which surged by 237% in a single day.

This increase in whale activity often signals positive market sentiment. Even though the broader cryptocurrency market is consolidating, Toncoin has defied this trend.

With a market cap of $18.6 billion and trading volumes exceeding $354 million, Toncoin is currently trading at its highest levels. Hence, analysts predict Toncoin’s price will reach $10 if the broader cryptocurrency market rally resumes.

2024’s Fastest-Growing Blockchain

The Open Network (TON), Telegram’s blockchain, has taken the cryptocurrency world by storm in 2024 by becoming the fastest-growing Layer 1 blockchain this year. Furthermore, TON’s total value locked (TVL) increased from $14 million to $386 million.

This represents a 27-fold increase, outpacing the growth of all other Layer 1 and Ethereum Layer 2 blockchains. The native token, Toncoin, has also recorded significant gains. According to CoinMarketCap, it now holds the fifth-largest year-to-date gain among the top 50 tokens.

Critical Factors behind TON’s Growth

TON’s rise began in February 2024 with the launch of its Open League incentives program. This program, along with an ad-sharing initiative and a partnership with Tether, has driven activity in the Toncoin ecosystem, boosting the price of its native token.

The Open League will distribute over $150 million in rewards across various categories, including DeFi, NFTs, tokens, and app ecosystems. With its 900 million monthly active users, Telegram is crucial to TON’s success.

The platform’s integration with the blockchain allows users to access TON-native wallet solutions like Tonkeeper directly within the app. Tonkeeper is also a separate mobile app and web application, currently ranking as the top finance app on Google Play.

Partnerships and Innovative Technology

In 2022, the TON network raised $250 million from notable investors like FJ Labs, Mask Network, and MEXC Venture. In May 2023, Pantera Capital announced its largest investment ever in TON.

Remarkably, the network operates a payment channel that processes transactions asynchronously, utilizing two interconnected networks, known as shard chains, to facilitate efficient and concurrent transaction processing. These chains finalize transactions independently and confirm their states to the payment channel’s smart contract.

This system differs from other blockchains like Solana and Ethereum, which use synchronous payment solutions. On TON, smart contract functions execute in future blocks, not the block in which the transaction is confirmed. Thus, TON can efficiently handle high volumes of complex smart contract interactions.

Steve Kornacki

Steve Kornacki

Steve Kornacki, a respected author at Big Trends Signals, uses his deep online trading acumen to create comprehensive guides and balanced reviews, empowering traders in their digital pursuits.

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