TON Blockchain: Understanding The Open Network and Its Future

Rubic has successfully integrated the TON network into its Best Rate Finder App, providing users with immediate access to multiple network’s top DEXs and cross-chain providers, all in one place. With Rubic, TON users can avoid the hassle of hunting for the best swap rates across different platforms. Our aggregation ensures you always get the most optimal deal for your swaps to, from & on TON.

TL;DR

• Rubic becomes the 1st cross-chain & DEX aggregator on TON, offering fast swaps and optimal rates with 0% protocol fees for swaps under $100.
• TON is a decentralized blockchain platform with a market capitalization of over $13 billion, making it a top-10 project.
• As a Layer-1 blockchain, it utilizes Proof-of-Stake (PoS) and features a unique “2-blockchain” architecture, enabling high scalability and the ability to process millions of transactions per second.
• Key features of TON include its multi-blockchain architecture, Proof-of-Stake consensus mechanism, and dynamic sharding for efficient scaling and resource allocation.
• TON is rapidly expanding, leveraging Telegram’s massive user base, a simplified user experience, and low transaction fees to drive blockchain adoption.

The Open Network (TON) has an intriguing backstory that ties back to one of the world’s most popular messaging apps — Telegram. Initially envisioned by Telegram’s Durov brothers, TON aimed to integrate cryptocurrency into the platform’s ecosystem seamlessly. The idea was simple: leverage Telegram’s massive user base and bring blockchain functionality into everyday messaging.

TON fully dilated market capitalization from October 2023 to October 2024. Source: Token Terminal

Fast forward to today, and TON has evolved into a community-driven blockchain powerhouse, with the TON Foundation at the helm. The TON blockchain is now a top-10 project with over $13 billion market capitalization. TON’s momentum in 2024 has been nothing short of impressive — Toncoin hit an all-time high (ATH) market cap of $36.7 billion in April, followed by a price peak of $8.18 in June.

Clearly, this blockchain is making waves. But what is TON blockchain, and why is it getting so much attention? In this article, we’ll break down the network’s key features and ecosystem and explore its impact on the crypto landscape to understand why TON is a project worth watching.

What is TON (The Open Network) Blockchain?

The Open Network (TON) is a decentralized blockchain platform created by the community using a technology designed by Telegram. The blockchain is designed for high scalability, with the ability to process millions of transactions per second, and supports a wide variety of decentralized applications (dApps)

How Does the TON Blockchain Work?

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TON is a Layer-1 blockchain that uses Proof-of-Stake (PoS) and brings together several key components like the TON Blockchain, TON Virtual Machine, TON Payments, TON DNS, TON Storage, and TON Sites.

The network operates as a multi-blockchain system, where its core component is the “2-blockchain” architecture. This includes a masterchain and up to 2³² workchains. These workchains can further divide into 2⁶⁰ shardchains based on transaction load and account numbers — each responsible for handling specific types of transactions. Currently, only the basechain is operational.

To keep things running smoothly and securely, TON uses a Byzantine Fault Tolerance protocol called “Catchain Consensus.” This protocol is specifically designed for TON’s unique sharding structure, which breaks down the blockchain into smaller, manageable pieces, ensuring efficiency as the network scales.

Advantages of The Open Network (TON)

At its core, TON is designed to handle millions of transactions per second, positioning it as one of the fastest and most efficient blockchain platforms. Here are the key advantages where TON is helping to tackle some of the biggest challenges in blockchain today:

1. The TON blockchain‘s standout feature is its scalability, powered by its multi-blockchain architecture and dynamic sharding:

• It can process millions of transactions per second, positioning TON as one of the fastest and most efficient blockchain platforms.
• Dynamic sharding allows the network to automatically split into smaller segments based on demand, ensuring smooth and efficient transaction processing as the network grows.
• The multi-blockchain structure of TON supports high throughput, fast transaction speeds, and provides a strong foundation for TON’s growing ecosystem.

2. TON also leverages asynchronous operations to enhance performance:

• Parallel processing of multiple transactions increases the network’s throughput.
• Reduced latency results in faster transaction confirmations and a smoother user experience.
• Asynchronous operations improve efficiency, ensuring high performance even under heavy loads, making TON suitable for large-scale, real-world applications.

3. In addition to speed and performance, TON offers flexibility and security:

• Customizable workchains and dynamic sharding allow for tailored solutions and efficient scaling.
• Byzantine Fault Tolerant (BFT) consensus ensures network security even in the event of node failures or malicious behavior.
• Cross-chain communication and independent smart contracts enable decentralized applications to interact seamlessly without centralized control.

Beyond speed, TON is built to be a highly adaptable and scalable platform for a wide range of decentralized applications (dApps), smart contracts, micropayments, and more.

Rubic’s Integration with TON: Expanding Cross-Chain Capabilities

Rubic, a leading cross-chain aggregation platform, has added the TON network to its growing list of supported chains. This integration allows users to seamlessly swap tokens between TON and other 90+ networks, including L2 chains, EVM & non-EVM networks, directly on the Rubic platform. As a cross-chain & DEX aggregator, Rubic’s integration with the TON blockchain expands routing capabilities, allowing users to move assets across different blockchains seamlessly.

By incorporating TON into its ecosystem, Rubic aims to provide a user-friendly gateway to the TON network. Rubic developers have successfully integrated major decentralized exchanges (DEXs) and cross-chain providers specifically for TON, offering users a convenient and aggregated experience for both on-chain and cross-chain transactions.

DEXs: Ston.fi, Dedust, SwapCoffee

Bridges: Symbiosis, Retrobridge, ChangeNOW

This expansion further solidifies Rubic’s position as a go-to platform for those seeking efficient and secure cross-chain swaps. With the recent implementation of a new fee model, swaps to, from, and on TON are now even more cost-effective. Transactions under $100 are completely fee-free, as are most on-chain swaps involving stablecoins or native tokens. For other types of swaps, fees are dynamic and vary based on trade specifics.

Why Swap On, To, From TON on Rubic?

Rubic is a user-friendly platform designed to help users easily complete swaps between different blockchains.

One Platform, Endless Opportunities: With Rubic, you can explore a curated list of airdrops and promotions and make swaps across 90+ blockchains or on-chain swaps on 200+ DEXs, all in one place.

Effortless Token Swapping: On Rubic, you can swap more than 15,500+ various tokens, on TON and other 90+ blockchains. Rubic aggregates several cross-chain providers and DEXs on TON, which makes it an ultimate place, which shows you the best rates and fastest transaction speeds.

Intuitive User Experience: We understand that navigating the world of cryptocurrency can feel daunting. That’s why Rubic prioritizes a user-friendly design. Simply connect your crypto wallet, and browse available airdrops and promotions.

Key benefits of Rubic’s integration with TON include:

• Enhanced Liquidity: Access to Rubic’s extensive network leads to better pricing and reduced slippage for TON-based assets.
• Simplified Cross-Chain Transactions: Seamlessly swap assets between Toncoin and other tokens with blockchains like Ethereum and Binance Smart Chain within a single interface.
• Expanded Market Access: Discover more trading pairs and opportunities without leaving the TON ecosystem.
• Improved User Experience: Enjoy Rubic’s user-friendly interface paired with TON’s fast & free transactions.

Looking ahead, more TON-based assets and DeFi protocols are expected to integrate into Rubic, creating a more interconnected and efficient blockchain experience for users.

What is Toncoin?

Toncoin, the native cryptocurrency of the TON network, plays a crucial role in the ecosystem:

1. Transaction Fees: $TON is used to pay for transaction fees on the TON network, just like users on the Ethereum blockchain must pay $ETH gas fees.
2. Staking: Users can stake $TON to participate in the network’s consensus mechanism and earn rewards. Staking for Toncoin is currently available directly on the network or through several major crypto exchanges, including Binance.
3. Governance: Holders of $TON can also participate in governance decisions via voting proposals on the TON blockchain, shaping the future of the network.
4. DeFi Collateral: Many DeFi applications within the ecosystem use Toncoin as collateral for lending, borrowing, and other financial services.
5. In-App Purchases: Games and other applications in the TON ecosystem often use Toncoin for in-app purchases and transactions.

$TON price movement over 12 months. Source: Messari

Toncoin’s price has surged by nearly 182% over the past 12 months, jumping from $2.07 in October last year to $5.83 today. One of the biggest drivers behind this rise is the integration of the TON wallet into Telegram. With over 900 million monthly active users, Telegram’s integration of the TON blockchain brings massive potential for the network.

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Beyond the Telegram integration, $TON has been listed on several Tier-1 exchanges, further boosting visibility and accessibility. According to Etherscan, over 33,981 wallets now hold $TON, and the ecosystem is expanding with new projects attracting investor attention, including major presale (ICO) initiatives.

As more users adopt the wallet and begin using Toncoin for transactions, the coin’s utility and price will likely keep climbing by the end of 2024. Toncoin’s bullish momentum goes beyond price gains — it’s also reflected in the growing number of developers working on the TON blockchain. The recent launch of an Ethereum-Toncoin bridge has further accelerated adoption, making it easier for crypto investors and DeFi users to explore this new blockchain.

The Open Network’s ecosystem is expanding rapidly, with a surge in trading volume, an increasing number of wallets holding $TON, and new projects gaining attention from investors.

TON Services: DNS, Storage, Sites, Wallets & Bridge

The TON ecosystem extends beyond applications to include crucial infrastructure services:

1. TON DNS (Domain Name System): Simplifies user interactions by assigning human-readable names to accounts and dApps.
2. TON Storage (Decentralized File Storage): Offers a decentralized file storage solution similar to Dropbox but with the added advantage of private encryption using the user’s wallet’s private key.
3. TON Sites (WWW): Allows users to launch a web server with their website and make it available on the TON network.
4. TON Wallets: Offers a variety of wallets for managing Toncoin, including non-custodial and custodial options. Non-custodial wallets like Tonkeeper and Tonhub give users full control over their funds, offering features like staking, decentralized app interaction, and token creation. For simpler needs, TON Wallet focuses on easy coin transfers with a user-friendly interface.
5. TON Bridge: Enables seamless conversion of TON coins across Binance Smart Chain, Ethereum, and The Open Network, allowing users to easily transfer TON tokens between these blockchain networks.

As the ecosystem continues to grow, we can expect to see these infrastructure services evolve and new ones emerge to meet the needs of an expanding user base.

TON Use Cases: DEXs, DeFi, Gaming, and Beyond

TON total value locked (TVL). Source: DeFiLlama

The Open Network has seen an impressive surge in total value locked (TVL) since the start of 2024, from $537.87k to $427.26 million in October.

Even so, the broader TON ecosystem is still relatively small compared to other top-10 projects by market cap. For example, the Ethereum and Solana ecosystems are worth $373 billion and $265 billion, respectively. In contrast, the TON ecosystem is currently valued at just over $16 billion, and when excluding Toncoin, that figure drops to around $2 billion.

Let’s dive into the diverse range of applications driving TON’s expansion, with decentralized finance (DeFi) and gaming at the forefront.

1. TON has seen the rise of several decentralized exchanges (DEXs) that allow users to trade tokens directly from their wallets without intermediaries:

• STON.fi: The largest automated market maker (AMM) on the TON blockchain, offering high-APR pools such as 13.87% for TON/USDt, 42.05% for TON/JETTON, and 27.49% for tsTON/USDt.
• DeDust: The second-largest DEX on TON with a TVL of $163.58M, offering liquidity mining and staking opportunities via its SCALE token, which rewards users with a share of the platform’s fees.
• Storm Trade: TON’s first decentralized derivatives trading platform, providing up to 50x leverage with a TVL of $26.75M. Its $STORM token recently completed a presale in August 2024.

2. TON’s DeFi ecosystem is expanding with staking platforms, lending protocols, and yield farming opportunities:

• Bemo: A non-custodial liquid staking protocol and one of the largest dApps in the ecosystem by TVL, with a current APR of 4.2%. Users can stake $TON and receive $stTON, which can be used across other DeFi applications.
• EVAA: The first and largest lending protocol on TON with $33M TVL, offering top yields of 11.54% APY for USDt.
• Hipo: A decentralized liquid staking protocol offering a 3.65% APY with over 600,000 TON staked.

3. TON Games is revolutionizing blockchain gaming by combining casual games with TON’s blockchain technology, mainly through TON Play, a toolkit for developers to build games on Telegram and TON:

• Notcoin: Launched in November 2023, this addictive tap-to-earn game allows users to earn in-game currency that can be converted into real tokens on the TON blockchain. By May 2024, Notcoin was listed on several exchanges, reaching a market cap of $900 million.
• Hamster Kombat: One of the most popular games on TON, with over 100 million active users and a market cap of $300 million. Players run their own cryptocurrency exchange, earning points and passive income through gameplay and investments. The $HMSTR token was officially launched in September after a highly anticipated airdrop.
• JetTon Games: Launched in August 2023, this cross-platform gaming solution offers players a chance to engage in gambling activities using over 20 cryptocurrencies, including its native utility token, JETTON, which now boasts a $91 million market cap.

4. Beyond DEXs, DeFi, and gaming, the TON ecosystem supports various applications that leverage its blockchain technology:

• Telegram Mini Apps: With support for both cryptocurrency and fiat payments, including integrations like Google Pay and Apple Pay, these apps allow users to perform secure transactions, manage digital assets, and access decentralized services — all without leaving the Telegram interface. The tApps Center lists 350 apps with 1.2 million launches and 420k monthly active users.
• NFT Marketplaces and Launchpads: Tonstarter, a leading fundraising platform on TON, provides early access to token sales, IDOs, and airdrops. With its high transaction throughput, TON is ideal for NFT marketplaces like Getgems, which offers NFT drops via bots, and TON Diamonds, a curated marketplace for digital art. Features like integrated DEXs and utility tokens (e.g., Glint Coin) further enhance the user experience.
• Partnerships with Financial Institutions: Collaborations with companies like HashKey Group, the company behind HashKey Exchange, will boost the TON Ecosystem by backing new projects and improving digital asset services, including fiat-to-crypto on/off-ramps.
• Monetization & Payments: Fragment offers a suite of Telegram-related blockchain services where TON is used as a form of payment. Expanding from tokenized usernames to anonymous phone numbers, Telegram Premium, and the Telegram Ad Platform, Fragment showcases the potential for deeper integration of TON in Telegram’s monetization strategies.
• Community Engagement: The TON Foundation has launched programs like The Open League, which incentivizes ecosystem development through token mining, tasks, and airdrops. This initiative has already shown positive results in increasing TVL and active wallet users.

With DEXs, DeFi protocols, gaming platforms, and a growing ecosystem supported by Telegram’s massive user base and innovative applications, TON is positioning itself as a versatile and scalable platform for the future of blockchain technology.

Current Status and Future Outlook of TON

TON monthly active wallets. Source: TonStat

TON transactions per day. Source: TonStat

Since the launch of Telegram’s native wallet, TON Space, in September 2023, the TON ecosystem has experienced rapid growth, reaching over 11 million monthly active addresses, according to TonStat. Over the past year, daily transaction volume on TON has grown twelvefold, with the top tokens — TON, USDt, CATI, NOT, and DOGS — shared across 11 million addresses. While TON’s user base is expanding, it’s important to note that some tokens encourage spamming and wallet farming, which could inflate these numbers. However, popular tokens like TON and USDt continue to see strong, legitimate use on the network, driving overall activity.

The ecosystem still needs to catch up with Ethereum and Solana, both of which boast significantly higher total value locked (TVL). Ethereum’s TVL is approximately 100 times larger, while Solana’s is ten times greater. Despite this, TON’s rapid development — especially with the fast-growing USDt stablecoin, which neared a 1 billion circulating supply in just four months — signals a promising future.

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On-chain activated wallets grew from over 1 million at the start of the year to 21 million by the end of September 2024. May saw the highest growth, from 3.4 million to 6.5 million, coinciding with the launch of U.S. dollar-backed USDt and gold-backed XAUT stablecoins on the TON blockchain. TON is the second blockchain XAUT is expanding onto after Ethereum.

The adoption of USDt-TON was partly driven by the TON Foundation’s allocation of 11 million Toncoin towards user incentives, which included 5 million Toncoin to boost TON/USDt liquidity pools on decentralized exchanges, DeDust and STON.fi. Key partnerships with exchanges like OKX, KuCoin, and ByBit have also driven liquidity and user growth through campaigns like Learn and Earn, where participants could earn from prize pools of Toncoin and USDt.

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The launch of $HMSTR on September 26 by Hamster Kombat marked a significant milestone for the TON blockchain. With a total supply set at 100 billion tokens, the market capitalization for HMSTR currently hovers around $300 million, reflecting a 50% drop since launch. The airdrop faced challenges, including a low listing price of $0.01, a sudden price decline, Telegram outages, and the banning of 2.3 million users for alleged cheating. Last-minute changes to distribution rules further frustrated the community. As the market watches closely, it remains to be seen if $HMSTR will find long-term success.

TON is expanding its cross-chain capabilities through the Jetton Bridge, allowing users to move Jettons (the tokens issued on TON, similar to Ethereum’s ERC-20 tokens) across Ethereum and BSC networks. Additionally, TON Teleport will enable users to bridge BTC between the Bitcoin blockchain and TON without relying on a central intermediary.

Looking ahead, TON is set to integrate EVM compatibility through a Layer-2 solution built on Polygon’s technology, bringing EVM-based dApps to the platform. Toncoin and USDt are also being integrated into Travala, a crypto-native online travel platform, adding more utility for those tokens.

The Open Network has seen new DeFi projects emerge, including ION Finance, the first concentrated liquidity DEX on TON that utilizes an order execution model within its Hybrid Order Book AMM, and Tradoor, a derivatives DEX offering up to 100x leverage on Bitcoin and Ethereum trades. There’s also a TON-based stable swap project in collaboration with Curve Finance.

Conclusion: The Growing Importance of TON and Cross-Chain Aggregation

TON’s ecosystem is set for substantial growth beyond the tap-to-earn game hype, driven by three key advantages: Telegram’s vast user base, a simplified user experience, and low transaction fees. With major investments from Pantera Capital, Animoca Brands, MEXC Ventures, and Mirana Ventures, TON is well-positioned for future expansion despite competition and market fluctuations.

Though it faces challenges in terms of compliance and preventing criminal misuse of the platform, Telegram provides a massive audience for TON blockchain apps to tap into and drive blockchain adoption at scale. By simplifying the often complex UX and blockchain experience — removing the need for seed phrases and gas fees — TON makes interacting with the blockchain as easy as using a web2 app.

Beyond the ease of use, TON’s low transaction fees and fast processing times make it an ideal foundation for peer-to-peer payments and other financial services within Telegram. As Telegram evolves into a global super app, TON could become the decentralized settlement layer for millions of users worldwide, aligning with the original vision of blockchain as a peer-to-peer electronic cash system.

Moreover, TON’s focus on cross-chain aggregation is critical to its growth. By enabling seamless interaction between different blockchains, TON fosters collaboration between decentralized applications and enriches the broader ecosystem. As cross-chain technologies like Rubic’s integration with the TON blockchain evolve, they will play a crucial role in shaping a more interconnected and efficient decentralized economy, solidifying TON’s position as a leading Layer-1 network.