Crypto’s Next Big Trend? The Rise of TON's TapFi and PPP Memecoins

The Open Network (TON) is the talk of the crypto space after experiencing explosive growth in the second quarter of the year.

Launched by the founders of Telegram in a controversial 2018 initial coin offering (ICO) before regulators shut it down, TON is now firmly established as the de-facto crypto chain of the ultra-popular communication app, which now also uses TONcoin (TON) for advertising revenue share.

TON’s biggest draw for investors is the fact that it taps (no pun intended) directly into Telegram’s 900 million-strong user base in a way that no other digital asset can.

Telegram is already an integral part of the crypto landscape. It is likely the most popular application for crypto users globally, thanks to its privacy and community features, and a strong community channel, something that’s non-negotiable for any crypto-related project or protocol in 2024.

With TON, Telegram users can now directly access the full gamut of DeFi primitives such as DEX and perp trading, borrowing and lending from within the app.

However, memecoins and wildly popular new “TapFi” tapping games are the real killer applications for TON.

As a result, TON has morphed into a thriving ecosystem thanks to a unique approach to community building, gaming and other entertainment features such as dating apps.

Here’s what you should know about TON and what’s driving its exponential growth.

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TON's Growth by the Numbers

To appreciate the meteoric rise of TON, it’s important to examine some key current metrics that showcase its impressive growth trajectory.

As of July 2024, TON now boasts a Total Value Locked (TVL) of $715 million, a staggering 55x increase in just over 6 months from a mere $13 million on January 1, 2024. Just 3 weeks ago it hit the $600m milestone for the first time.
The platform's stablecoin presence is equally robust, with a market capitalization of $571 million, which indicates a strong foundation for trading and DeFi activities within the ecosystem.
TON consistently sees substantial daily trading activity, with a 24-hour volume of $14.5 million, highlighting the platform's liquidity and user engagement.
Investor confidence in TON is further evidenced by the $500 million raised, according to DeFiLlama. This substantial funding provides a lot of runway for the continued development and expansion of the ecosystem.

The TON token itself is currently holding steady above the $7 range for a market capitalization of $18 billion, and a fully diluted valuation (FDV) of $37 billion.

While it’s very high compared to other layer-1 and layer-2 chains, it’s clear that institutional investors are trying to price in the massive network effect that Telegram is providing. TON provides Telegram with the capability to become an all-in-one super app in the mold of China’s WeChat behemoth.

The Memecoin Boom and Tapping Games

As we saw last year with Solana’s stellar return to the top, crypto grassroots communities love nothing more than farming lucrative airdrops and trading memecoins.

TON builders have taken notice and followed suit this year. As a result, they are pulling in millions of users with memecoins and innovative "tapping games" within its ecosystem. Two standout examples that have captured the community's attention are Notcoin and Hamster Kombat.

Notcoin was first out of the blocks, and simply required players to tap their phone screen repeatedly to accrue points which would later convert into an airdrop of the NOT token.

Hamster Kombat has taken it a step further and conquered the TON community with its unique tap-to-earn gameplay. Players assume the role of hamster CEOs managing fictional crypto exchanges, combining simple yet addictive mechanics with the potential for crypto rewards. The game publishes daily combo and cipher codes to help players maximize their points tally.

The strategy is working. The game's success is evident in its user statistics, with Telegram CEO Pavel Durov reporting that Hamster Kombat attracted an astonishing 239 million users in just three months, with 4-5 million new users joining daily. Other games such as Blum, X Empire and Catizen have also grown their user bases incredibly quickly.

These games leverage Telegram's mini-app protocol, introducing blockchain concepts to a vast user base in an accessible, gamified format. It also demonstrates TON's ability to foster engaging, user-friendly applications that appeal to both crypto natives and newcomers alike, in the process driving adoption and expanding the network's reach. As a result, early investors like Animoca Brands co-founder and GameFi guru Yat Siu are extremely bullish on the chain’s long-term prospects.

Check the most popular TON cryptocurrencies here.

TON Memecoins: PPP vs PvP?

Following April’s Bitcoin Halving, memecoins have been a culture casino and refuge for retail investors jaded by shiny new VC-backed bluechip cryptocurrencies whose low float high FDV features left very little financial upside.

Let’s take Solana for example:

Solana’s cheap and fast network and the Pump.fun platform helped it attract the vast majority of memecoins. It’s seen the chain clock 450,000 new tokens and flip Ethereum in daily active users in June 2024. However, this popularity soon brought a plethora of scammers and hackers that shilled new memecoins only to rug pull or dump their bags on investors. It culminated in last month’s celebrity memecoin craze, which saw the likes of Iggy Azalea and Caitlyn Jenner entering the crypto market with their own coins.

TON’s first successful meme was Resistance Dog (REDO), which still holds a market cap of $80m and is fully diluted with all coins out in circulation.

Notcoin (NOT) has since emerged as a standout performer, currently ranked 51st by market cap, boasting a market cap of $1.62 billion.

TON memecoins have received praise for their "Player Pump Player" (PPP) ethos, in contrast to the "Player vs. Player" (PvP) mentality often seen in other blockchain ecosystems.

PPP communities focus on creating value for all participants, emphasizing long-term growth and sustainability through an environment where the success of new entrants is celebrated and supported, rather than viewed as an opportunity for exploitation.

In contrast, PvP-oriented communities often prioritize short-term gains, leading to a cycle of pump-and-dump schemes, rug pulls, and overall market instability. It is a very hostile environment for new traders, who in most cases quickly exit after getting pummeled by successive scams.

TON memecoin traders seem committed to the PPP model, and the network is currently less accessible than Solana. These factors have contributed to TON's fresh, community-oriented feel, resulting in less volatility and fewer rugpulls, at least for now. However, it remains to be seen whether this behavior can be maintained as the TON memecoin sector expands.

As the recent bear market showed, the ideals of WAGMI usually evaporate as soon as market conditions get tougher.

Useful Tools To Navigate the TON Ecosystem

To fully participate in the TON ecosystem, users need access to a variety of tools and platforms that facilitate transactions, trading, and analysis.

Here are some essential resources that have become integral to the TON user experience.

Warning: Please note CoinMarketCap is not endorsing any of these tools and they haven’t been officially tested by us. Many are still experimental and could potentially put your funds at risk. Please DYOR and interact with caution.

TON Wallets

Wallets play a crucial role in storing and managing TON assets.

Tonkeeper and Ton Wallet are the most popular wallets with built-in DEX access and multi-address support, offering a comprehensive solution for TON users. However, they still have work to do when compared with other chain wallets like Phantom and MetaMask.
Telegram recently introduced its official @wallet feature which functions as both a CEX and a non-custodial wallet, thereby leveraging the popularity of the Telegram platform.

Bridges

Bridges are essential for connecting TON with other blockchain networks, enabling asset transfers and enhancing interoperability.

Key bridges include the official TON Bridge.

These services facilitate the movement of assets between TON and various other blockchain ecosystems, expanding the utility of TON tokens.

DEXs and Trading Bots

Decentralized exchanges (DEXs) are the backbone of trading activities within the TON ecosystem.

STON.fi and Dedust.io are the two leading TON DEXs, according to DefiLlama. Both offer web interfaces and Telegram bot versions, providing convenient trading options for users, while TON Diamonds aggregate the two DEXs. These platforms enable token swaps and make it easy to provide liquidity. However, the process is not yet as seamless and quick as on competitor chains.
One arena where TON shines is its huge range of DeFi trading and signal bots, which provide investors with in-depth analysis and market insights.
Charting platforms like DexScreener, DexTools and GeckoTerminal provide essential technical analysis, token information, data visualization and market overview capabilities.

These tools collectively help users conduct anything from basic transactions to advanced trading strategies and market analysis.

The Future of TON: Challenges and Opportunities

As TON continues its rapid growth trajectory, it faces challenges and opportunities that will shape its future in the blockchain space.

One of the primary challenges TON must address is scalability. As user adoption increases, maintaining high performance and low transaction costs will be crucial to sustaining growth.

The network will need to continuously evolve its infrastructure to handle increasing transaction volumes without compromising speed or efficiency.

Regulatory compliance presents another significant challenge, especially considering the history of friction between Telegram and regulators. Telegram had to return $1.2 billion in ICO contributions to investors in 2020 after the SEC sued it for securities law violations and won in court.

Competition from other smart contract platforms remains a constant challenge. TON must continue to differentiate itself through unique features, superior performance, and a strong community to maintain its growth momentum in a crowded market.

Despite these challenges, TON’s close association with Telegram presents a unique advantage, offering the potential to leverage Telegram's massive user base for further adoption. Integrating blockchain functionality seamlessly into the Telegram experience could drive unprecedented user onboarding and engagement.

Conclusion

The TON ecosystem has demonstrated remarkable growth, driven by its innovative approach to community building, engaging applications like Hamster Kombat and Notcoin, and a commitment to sustainable development. Its adherence to a PPP mentality has created a more welcoming and stable environment for users and developers alike, setting it apart from more volatile blockchain ecosystems.

As TON continues to evolve, it has the potential to become a major player in the blockchain space, offering a unique blend of accessibility, performance, and community-driven innovation. The platform's impressive growth metrics, diverse token ecosystem, and robust toolset provide a strong foundation for future expansion and could position it as the perfect gateway application to finally achieve that slightly hackneyed vision board mantra: onboarding the next billion users to crypto.

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