The cryptocurrency Toncoin TON/USD, linked to the messaging app Telegram, has experienced a significant surge in value, reaching the top 10 in market capitalization. This rise is attributed to its integration with Telegram, which has a user base of approximately 900 million.
What Happened: The TON token’s value has seen a remarkable increase in recent months, with investors betting on its integration with the popular messaging app Telegram. The app’s endorsement of TON as its official Web3 infrastructure in September last year has been a significant factor in this surge, reported Reuters.
TON’s blockchain also announced the potential issuance of Tether tokens, enabling Telegram users to send the stablecoin to each other within the app. This development further fueled the token’s value, which soared to $7.63 on Apr. 11, compared to $2.21 a year earlier.
“The recent foray into crypto payments through Telegram introduces a new use case for the app, but its acceptance and adoption are still in the nascent stages. The main challenge is shifting user perceptions in non-Asian markets, where messaging apps are predominantly seen purely for communication rather than as multi-functional platforms,” said PitchBook senior analyst Robert Le.
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With a circulating supply of $18.3 billion, TON has become the 10th largest cryptocurrency, following Dogecoin. The concept of a “super app” that combines payments, shopping, and social media has been a long-standing interest for investors, with TON’s success reflecting this trend.
Why It Matters: TON’s rapid ascent in value and market cap is a result of its integration with Telegram, a platform with a massive user base. This development is in line with the growing trend of cryptocurrencies gaining value through partnerships and real-world applications.
Earlier in April, TON’s value surged following significant developments in AI collaborations, such as a palm-scanning project with Human Code, propelling the cryptocurrency into the top 10 most valuable cryptocurrencies by market capitalization.
Moreover, crypto venture capitalist Andrew Kang of Mechanism Capital predicted a surge in buying opportunities for TON and other cryptocurrencies due to the expected approval of cryptocurrency ETFs globally. This, combined with the Telegram integration, has contributed to TON’s remarkable surge in value.
Price Action: Toncoin is presently valued at $5.36, marking a 1.77% increase over the past 24 hours. Notably, it has surged by an impressive 149.18% over the course of the last year, according to the data from Benzinga Pro.
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