July 24, 2024
TON Tops Ethereum in Daily Active Addresses, But There's More to the Story
Altcoins News

TON Surpasses Ethereum in Daily Active Addresses, But There’s More to Consider

The Open Network (TON) blockchain has recently surpassed Ethereum in daily active addresses. However, this achievement doesn’t tell the whole story.

TON Surpasses Ethereum in Daily Active Addresses

TON has recorded more daily active addresses (DAAs) than Ethereum for 10 out of the last 11 days. According to Delphi Digital, this surge can be attributed to TON’s connection with Telegram’s extensive user base. Delphi Digital commented on June 10, “TON’s quiet growth, fueled by Telegram’s 900M user base, has driven its daily active addresses above Ethereum,” labeling it “The Flippening CT ignores.”

Source: Delphi Digital

Sustaining the Growth

The continuous increase in DAAs for TON has sparked discussions about its potential to maintain this growth. Delphi Digital added, “TON is a bet on Telegram’s distribution,” and questioned whether this promising growth could be sustained to permanently surpass Ethereum.

Artemis Data Insights

Data from Artemis, which defines DAAs as the number of unique wallets making a daily transaction on a blockchain, reveals a tight competition between TON and Ethereum since May 17. On June 3, TON hit a record 568,300 DAAs, a milestone Ethereum hasn’t reached since September 13, 2023.

Layer 2 Solutions: The Missing Context

However, this comparison doesn’t fully account for Ethereum’s layer 2 (L2) scaling solutions. Many of Ethereum’s transactions have shifted to L2s, significantly affecting the overall user activity on the main blockchain. For instance, on June 11, three major Ethereum L2s — Arbitrum, Base, and Optimism — combined for a total of 1.3 million DAAs. Ethereum co-founder Vitalik Buterin has consistently supported using L2s to scale the main blockchain, which is a part of Ethereum’s roadmap.

Source: Artemis

Reasons Behind TON’s Growth

TON’s recent growth in network activity can be linked to several developments. Telegram integrated the Tether (USDT) stablecoin on TON and has seen 35 million users sign up for Notcoin, a “tap-to-earn” token that rewards users for completing social challenges.

Additionally, Telegram launched Telegram Stars, an in-app currency for digital purchases, on June 6. Moreover, Telegram trading bots have become a popular crypto use case on the messaging platform, contributing to the uptick in TON’s activity.

Conclusion

While TON’s recent performance in DAAs is noteworthy, it is essential to consider the broader context, including Ethereum’s L2 scaling solutions. As TON continues to leverage Telegram’s vast user base, the blockchain space will watch closely to see if this trend is sustainable in the long run.

Image by fabrikasimf on Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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