TON Faces Downhill Slide Ahead of Telegram Integration

Price drop sparks concerns as exclusive Telegram rollout approaches.

The price of TON, the native cryptocurrency of The Open Network, has plummeted to $3.80, marking a sharp 47% decline from its post-election peak of $7.20. This downturn comes at a critical juncture, with Telegram poised to implement TON as its exclusive blockchain platform on February 21, 2025.

Trading volumes have taken a substantial hit, dropping from over $1 billion during the post-election surge to around $100 million. This stark decrease mirrors a broader trend of declining activity across the cryptocurrency landscape. Despite fresh capital entering the crypto markets, TON's daily active addresses have slumped to their lowest point this year, raising concerns about dwindling investor engagement.

Technical indicators offer mixed signals. The Relative Strength Index (RSI) has fallen to extreme lows, often interpreted as a sign of an oversold asset. Additionally, the Network-to-Market Value Ratio (NMR) suggests TON might be undervalued—a condition historically linked to potential price rebounds. However, with only 4% of current TON holders in profit, the weight of unrealized losses could exert continued downward pressure.

In contrast to the bearish market sentiment, TON's ecosystem developments present a more optimistic picture. Telegram's upcoming exclusive integration of TON for all blockchain mini-apps is expected to boost network activity significantly. To ease this transition, the TON team has introduced a Migration Grant program, offering developers up to $50,000 in AD Credits to migrate their applications to the TON blockchain.

Further bolstering the ecosystem, TVM Ventures has launched a $100 million fund to support decentralized finance (DeFi) projects on the TON network. This strategic investment aims to attract innovative applications, enhancing TON's utility and market appeal. The gaming sector has also shown interest, with AKEDO Games securing funding from Karatage-led investors to develop on the TON platform.

Market analysts highlight the importance of TON maintaining a price above $2 to prevent potential liquidation risks involving $13.3 billion in tokens. The $4.50 mark is viewed as a critical resistance level; consistent price closes above this threshold could signal the onset of a new bullish phase.

While the broader crypto market—led by Bitcoin hovering around $96,177—continues to influence TON's trajectory, internal factors like ecosystem growth and developer adoption will play pivotal roles in determining its long-term resilience. Despite recent setbacks, TON's strategic partnerships and ongoing development efforts hint at potential recovery, especially with the high-profile Telegram integration on the horizon.

photo source / Blockonome