Toncoin has broke out into a major bull run after its native blockchain set a new world record of the most transactions per second (TPS). TON processed over 100,000 TPS on 31 October, a figure which has been audited by CertiK.
At the time of writing, the cryptocurrency is up 9% in the past day. However, Toncoin price predictions are divided on whether this bullish activity will continue.
What is TON?
The encrypted messaging app Telegram initially created TON as a decentralized layer-1 blockchain in 2018. TON initially stood for ‘Telegram Open Network’, but it was eventually abandoned by the messaging app and rebranded to ‘The Open Network’.
Telegram designed TON to be an “easy-to-use application”, where users could buy, send and store funds within the app. Using a proof-of-stake model, TON was create to facilitate thousands of TPS. It even currently holds the crypto world record for most TPS.
Despite the innovative approach and the technical prowess behind TON, the project encountered significant regulatory hurdles. The U.S. Securities and Exchange Commission (SEC) took action against Telegram, alleging that the company’s sale of the TON token, initially called Gram, was an unregistered securities offering.
This legal challenge led to the discontinuation of the project, with Telegram officially announcing the end of their involvement in TON in May 2020.
The platform’s technology, however, has since been adopted by an independent group developers and continues to be developed independently of Telegram.
Now, the developers’ have switched their mission to create a bustling ecosystem with various decentralised services. This includes storage, an instant payment platform, affordable transactions, and a domain name system.
What is Toncoin?
Toncoin is the cryptocurrency that powers this rebranded and community-driven version of the TON blockchain.
It serves as the primary transactional currency within the network, maintaining the original intention of facilitating fast and secure peer-to-peer transactions. Investors can utilise the cryptocurrency to pay for decentralised apps (DApps), transaction fees, and as staking payment which secures the blockchain.
Despite the absence of Telegram’s direct involvement, Toncoin has garnered attention in the cryptocurrency market as an emergent player. The community’s commitment to the project reflects a broader trend in the cryptocurrency sector, where decentralisation is not just a technical feature but also a governance model.
After being founded in 2018, the TON network was abandoned by Telegram two years later after the regulatory action from the SEC. The project was then taken over by the developers Anatoliy Makosov and Kirill Emelianenko.
The native cryptocurrency Toncoin then launched in the midst of the 2021 bull run, going live at $0.51 in August. It has experienced extreme volatility since this launch.
Along with the bullish market at the time, TON rocketed to its all-time high soon after launch. It reached its price record of $5.84 on 12 November. As well as the upward trajectory of the wider market, Toncoin’s price also profited from the an event ran by OKX exchange where one million TON was being offered to traders.
TON was unable to sustain this momentum and soon fell victim to the crypto bear market. It closed the year below the $2 mark. Despite another rally in January, it continued to plummet throughout the first half of 2022. It dropped below the $1 level in June and $0.88 in July.
However, it soon started rallying again. This gained attention from various major exchanges. Huobi started a prize pool for TON traders in September and KuCoin listed the token as part of its trading bot product in October,
Toncoin peaked at the $2.50 level in December, before eventually losing most of these gains in the 2023 bear market. The cryptocurrency plummeted to $1.19 in August.
Recent Toncoin news
Toncoin has recently gained attention from the crypto community after breaking the TPS record again. On 31 October, the TON Foundation hosted a livestream, which was audited by Certik, where the blockchain set the world record of 104,715 TPS.
The cryptocurrency rallied off the back of the news. As of 8 November, Toncoin was trading at $2.68, up 35% in the past seven days. Now, with its market capitalisation of $9.1m, it is the 10th-largest cryptocurrency.
Toncoin price prediction
After the recent rally, there are some optimistic TON crypto price predictions. CoinCodex said there is currently “bullish” sentiment surrounding the decentralised project. An overwhelming 27 of its technical indicators pointed towards buy, while only three signalled sell.
The site’s Toncoin price prediction for 2023 suggested the crypto would fall to $2.58 in five days time, but climb back to $2.75 by next month.
DigitalCoinPrice gave a longer-term forecast, which was much more optimistic. It said the cryptocurrency would average out at $5.44 this year and its Toncoin price prediction for 2024 anticipated it to reach $6.74. By 2025, Toncoin was said to come close to the $10 mark.
Its Toncoin price prediction for 2030 anticipated a new all-time high of $27.
A similar sentiment was shared by the analytic website PricePrediction. It said Toncoin would reach a maximum price of $2.83 this year. The site’s Toncoin price prediction for 2024 said it would hit $4.40 and climb to $6.40 in 2025. By the beginning of the next decade, the TON coin price prediction suggested a new all-time high of $39.84.
On the other hand, WalletInvestor was bearish with its TON token price prediction. The site said the cryptocurrency would drop to $0.29 in a year’s time.
Should I invest in Toncoin?
It depends. Toncoin price predictions are split on whether it can maintain this rally. DigialCoinPrice anticipated new all-time highs, whereas WalletInvestor suggested TON will plummet to $0.29 in a year. The cryptocurrency market is known for its volatility and you should never invest more than you can afford to lose.
Is Toncoin a good investment?
Despite being dropped by its creator Telegram, TON has gained community support, which has seen developers continue to work on the platform. However, investors should always be cautious and conduct thorough due diligence.
Disclaimer: The information provided in this article is for informational and educational purposes only and should not be construed as financial advice. CoinNews and its authors are not financial advisors or experts. We recommend that you consult a professional financial advisor or conduct thorough research before making any investment decisions. Cryptocurrency investments carry a high degree of risk, and you should only invest an amount you are willing to lose. The opinions expressed in this article are those of the author and do not necessarily reflect the views of CoinNews or its affiliates.