- Toncoin (TON) flipped Cardano’s ADA to become the ninth-largest cryptocurrency by market capitalization on April 9.
- TON’s price surge was driven by the TON Society developers setting aside 5 million Toncoin to incentivize users to verify their identity using palm scanning technology for Telegram users.
- With a market capitalization higher than Dogecoin (DOGE), the question remains if TON can maintain its momentum to surpass DOGE and become the eighth-largest cryptocurrency.
Telegram‘s blockchain project Toncoin has surpassed Cardano’s ADA token to become the 9th largest cryptocurrency by market capitalization. Toncoin’s recent price surge allowed it to climb the ranks while Cardano struggled.
Toncoin’s Impressive Rise
Following a 13% daily price increase, Toncoin rose to $6.65 on April 9th to become the 9th largest cryptocurrency with a $23 billion market capitalization, overtaking ADA’s $22 billion market cap.
The rally comes after the TON Foundation announced a $115 million incentive program, with funds allocated for mining rewards, airdrops, developer incentives, and liquidity rewards. This program aims to drive further adoption and usage of Toncoin.
In contrast, Cardano’s ADA token saw little interest this year as investor attention focused on Bitcoin ETFs and major blockchain upgrades like Ethereum’s Merge.
Can Toncoin Maintain Momentum?
Toncoin’s price action has drastically outperformed Dogecoin recently. Toncoin rose 130% over the past month while DOGE only gained 14%. Year-to-date, Toncoin is up 177% while DOGE is up 108%.
While Dogecoin lacks utility, Toncoin’s integration with Telegram’s messaging app could continue fueling its growth as more users join the network.
However, Toncoin’s concentrated token distribution could raise concerns. Over 60% of Toncoin is held by the 10 largest holders, while 93% is held by the top 100. This suggests that retail investors have little power over governance and price action.
Toncoin has shown impressive momentum recently, but its long-term trajectory depends on driving further adoption and usage within Telegram’s ecosystem. Its upcoming identity verification incentives could be a catalyst for additional growth if successful.
