Toncoin (TON) serves as the primary digital currency on The Open Network, a decentralized layer one platform. The cryptocurrency is backed by community support and contributions from different network participants, including the non-profit organization Ton Foundation. The platform boasts a multi-layered structure for sharding, catering to a vast user base of more than 300 million Telegram users.

Toncoin recently faced a significant setback in its market capitalization, witnessing a staggering drop of over $7 billion due to alterations in its circulating supply. Despite this decline, the current trading price for TON is approximately $6.4, reflecting a 1.22% decrease in the last 24 hours while indicating a remarkable 246% increase over the past year.

Pantera Capital recently made a substantial investment in TON, underscoring their confidence in the cryptocurrency's potential to attract a wider audience and enhance crypto scalability, driven by a substantial monthly download rate of approximately 36.7 million.

TON Redefines Supply Amidst Rising TVL

The total supply of Toncoin is capped at 5,107,130,904 TON as per its design, with a circulating supply currently standing at 2,412,300,517. Notably, The Ton Foundation executed a significant update pertaining to its supply, aligning with standard industry practices and leading data aggregators like CoinGecko, CoinMarketCap, and Tontech.io. This revision, initiated on May 29 at 17:00 GST through its official Telegram channel, excluded certain locked or reserved tokens from the circulating supply figure. These exclusions encompass tokens held in the TON Believers Fund, those retained by Telegram, and those under The Open Network Foundation's possession. The adjustment aims to provide a more precise depiction of Toncoin's available supply in the market, leading to a substantial $7 billion drop in its market cap without any alterations in price.

Despite the adjustment in TON's supply, the Total Value Locked (TVL) of the protocol has been on a steady upward trajectory. Over the period from March 2024 to May 2024, the TVL of TON surged from a low of $33 million to a remarkable high of $330 million. This achievement underscores TON's growing prominence in the decentralized finance (DeFi) sector, fueled by advancements in gaming applications and liquid staking. Furthermore, decentralized exchanges (DEXs) like Ston.fi and Dedust observed significant TVL increases of 125% and 85% respectively, while liquid staking protocols like Tonstakers and Bemo also experienced notable upticks of 39% and 12.5% correspondingly. Analysts speculate that Pavel Durov's return, the co-founder of Telegram, has contributed to these positive trends.

Toncoin's Potential against Established Players

The successful launch of USDT on TON marked a significant milestone, with more than 316 million USDT tokens circulating on the network. Noteworthy token holders include The TON Believers Fund and The Elector, with supplies of over 1,317,379,090 and 549,013,434 respectively, alongside Telegram holding a supply of 224,958,190.

The top 20 TON holders collectively possess over 71% of the total supply, while The Elector smart contract address, holding 11% of the supply, witnessed an outflow of 4,558,757 TON over the last 7 days, amounting to over $2.9 billion.

Toncoin has shown a robust growth in TVL alongside the proliferation of various protocols within its ecosystem. The user base of Toncoin and Telegram has been expanding rapidly. However, despite these positive developments, Toncoin faces a challenging journey to compete with leading blockchains like Solana and Ethereum.