Boom To Bust: TON Network’s Daily Users Drop From 5 Million To 1.58-M

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As an analyst with over a decade of experience in the cryptocurrency market, I have witnessed countless projects rise and fall, each with its unique set of circumstances. The recent decline in the daily active users (DAU) of the TON network, from a high of over 5 million to 1.58 million as reported by IntoTheBlock, is certainly a cause for concern but not necessarily a death knell.

The number of daily active users on The Open Network (TON) blockchain has noticeably dropped. As reported by IntoTheBlock via a Twitter/X post, the current active user count stands at approximately 1.58 million, marking a decrease from its peak of more than 5 million.

This article likewise featured a graph indicating the count of daily active addresses within the network, marked by peaks and valleys signifying bull rushes, enthusiasm surges, and market adjustments. IntoTheBlock queries: what circumstances could possibly set off another surge for TON?

TON’s DAU Down, But Does It Matter?

One analytics company, IntoTheBlock, monitors various statistics for cryptocurrencies, including the daily active user (DAU) count. In the rapidly expanding crypto market, the DAU is an essential indicator that can provide insights into the current standing or future prospects of a crypto project. Essentially, the DAU represents the number of users, so a higher DAU count indicates that it’s being utilized and has growth potential.

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 trigger TON’s next surge?

— IntoTheBlock (@intotheblock) October 21, 2024

However, while the current figures for TON may not appear encouraging based on IntoTheBlock’s report of a decrease in Daily Active Users (DAUs), data from DappRadar suggests a rise in user engagement earlier in September. This increase seems to be partly fueled by an uptick in crypto gaming enthusiasm.

As a crypto investor, I’ve been closely monitoring the blockchain gaming metrics, particularly for platforms like Telegram, which host games such as Yescoin and Catizen. At its peak on September 27th, these Dapps boasted an impressive user base of 5 million. However, by October 27th, daily active users (DAU) had dropped to approximately 1.58 million.

Durov’s Arrest & Other Issues

It appears that analysts believe the current performance of Toncoin in the market is linked to recent problems faced by Telegram. This project is being developed by Pavel Durov and his team at Telegram, who are also responsible for TON and Toncoin. Some speculate that Durov’s arrest and other network issues have played a role in causing a drop in value. On the positive side, integration with Alchemy Pay and significant airdrops have boosted user activity and influenced price movements positively.

Toncoin Also Sees A Sluggish Price Movement

The troubles with the network are affecting the value of its own currency, Toncoin, as well. Currently, Toncoin is experiencing a decrease in users, which coincides with the token’s difficulty in maintaining its rising price trend. As of October 22nd, Toncoin is being traded between $5.20 and $5.30, failing to reach the $5.6 level it attained on October 1st.

TON User Activity Tracks Industry’s Down Cycle And Bull Runs

The drop in TON’s daily user count from more than 5 million to around 1.58 million is happening alongside less activity on the network and market instability. Furthermore, the number of new and zero-balance accounts, which peaked at over 2.58 million and 346,000 respectively, has now decreased to fewer than 650,000 and 68,000.

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2024-10-22 19:11