Toncoin ($TON) Deep Dive
Get key info on one of the fastest-growing L1s in 2024
Hey Investor 👋🏻
welcome to a free edition of Altcoin Investing Picks.
I hope you enjoyed last week’s issue “5 New Micro Memes Worth Your Attention”.
Today I want to talk about $TON, one of the fastest-growing L1s in 2024.
Let’s dive in!
The Basics
Sector: Smart Contract
Narrative: Alt-L1
Market Cap: $22.99B
Down from ATH: -12.84%
Up from Cycle low: +43.82%
365d ROI: +258.13%
365d ROI vs BTC: +35.23%
Toncoin ($TON) is the native cryptocurrency on The Open Network, a decentralized layer 1 blockchain. The TON blockchain is open source and supported by a large number of network contributors, including the TON Foundation, a non-profit organization based in Switzerland.
The project, developed by Telegram founders Pavel and Nikolai Durov, raised 1.7 billion in an ICO in 2018 but had to shut down in May 2020 due to an SEC lawsuit. Following that, TON formally debuted in August 2021 under the TON Foundation, with the TON native token (hence referred to as Toncoin), and is still closely associated with Telegram.
After three years of advancement, TON is setting up to be one of the main alt-L1s this cycle.
The Opportunity
In terms of "mass adoption," TON (The Open Network) represents the most plausible possibility to onboard non-crypto-native consumers. The case is based on one significant statistic: Telegram has 900 million monthly active users (MAU).
TON's tight technological integration with the mainstream messenger app provides users with an easy-to-use UX in the form of a one-click-deploy wallet, "text message" on-chain transfers, and Telegram bots for almost any DeFi or GameFi dapp - all without the need to install anything other than Telegram.
Our View
TON is overvalued in terms of MC/TVL ratio (79.9) against the other Alt-L1 competitors (ETH 7, SOL 16.7, Cardano 64.3, NEAR 24.6, Stacks 27.4, and so on…).
Blockchain Benchmarks - Valuation Multiples 👇🏻
However, we expect $TON to outperform the sector in this post-halving cycle basically for 3 reasons 👇🏻
1/ ALT-1 Narrative
Historically, alt-Layer 1 tokens perform very well in bull markets, and I don’t expect this time to be different.
TIP: Alt-L1’s outperform when the market is greedy. Maximize your profit by investing when the Fear & Greed Index is above the neutral level (60/100).
2/ Fundamentals
$TON is one of the fastest-growing L1s in 2024, outperforming the other Alt-L1 competitors in fundamental metrics like daily users, TVL, daily transactions and fees in the last 3 months.
3/ Smart Money
Top tier funds have been investing millions in Toncoin in the last months:
DWF Labs runs two TON validators and invested 10M in TON ecosystem
Animoca is an investor in TON and also running one of its largest validators
Yolo Investment invested 8M into TON
That’s all for today!
Thanks for reading
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Cheers