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The Open Network (TON) is about to close 2024 as one of the top performing Layer-1 blockchains. Its ~200% gain in 2024 rivals that of other major Layer-1 tokens like ETH, SOL, BNB, ADA, TRX, and AVAX.
TON’s partnership with Telegram, formed in late 2023, has opened the door for hundreds of millions to explore blockchain-based mini-games. But with increasing regulatory scrutiny facing social media platforms, the big question is: Will TON solidify its place, or fade away?
Blockhead
TON advantages and potential
TON is quickly becoming one of the leading Layer-1 blockchains in 2024, positioning itself as a major contender to onboard the next billion crypto users. This is largely thanks to its connection with Telegram, which boasts over 950 million active users.
Now, the potential of TON-Telegram partnership to bring Web2 users to the blockchain economy is based on the easy, familiar UX of Telegram mini-apps that run on top of the messaging app.
What makes the TON-Telegram partnership particularly promising is the smooth, user-friendly experience it offers. Telegram mini-apps, which run directly on the messaging platform, make it easy for people to transition from Web2 to Web3 without steep learning curves.
The platform has also become the second most popular source of crypto news and updates. Given that, it makes sense for users to be able to interact with Web3 directly from the same app they already use for messaging.
The growing interest in TON’s “Tap-to-Earn” games isn’t surprising either, especially since many of Telegram’s users experienced the “Play-to-Earn” boom of 2021. TON’s developers seem to have capitalized on this, as a range of apps now compete for attention within Telegram’s ecosystem. Institutional players are also taking note. Platforms like BitGet, Curve Finance, Trust Wallet, and even Binance (which has its own blockchain of retail-focused apps) have begun building on top of TON.
Telegram's retail-oriented mini-apps model
On the surface, Telegram’s approach might seem like a risky experiment. But in reality, it’s one of the smartest moves the platform could make to secure a position in the superapp race against tech giants like Google, X (formerly Twitter), Apple, and Meta (Facebook), as detailed in a report by Bloomberg.
While most major tech companies work on their superapps behind closed doors, Telegram is doing things differently. Instead of spending years on research and development to build a perfect platform from scratch, it’s leveraging the massive user base and infrastructure it already has. By letting developers create and test apps directly within the Telegram ecosystem, it fosters a dynamic and experimental environment for blockchain-based services.
Looking ahead, while Telegram may not be the largest social media platform, its native connection to crypto could become a significant revenue driver. Blockchain-based features like microtransactions, NFT marketplaces, and decentralized finance (DeFi) could open up new revenue streams, strengthening Telegram’s position in the superapp competition.
Challenges ahead
Despite its strong potential, TON faces a few major challenges. For one, TON’s community was relatively dormant until 2023. Since then, most of the attention surrounding the platform has been driven by memecoins (officially incentivized by TON) and “Tap-to-Earn” games. While these use cases have gained traction, they might not be enough to keep users engaged once the initial rewards dry up.
A good example is the TON mini-game Hamster Combat, which quickly gained widespread attention and a massive player base, peaking at 300 million users by August. The game’s rapid growth was attributed to its integration of blockchain technology and crypto rewards, with Telegram's CEO even calling it “the fastest-growing digital service in the world.” The game was initially seen as part of a new era of mini apps bringing blockchain to the masses.
Despite its initial popularity, Hamster Kombat experienced a dramatic decline. As of now, its active monthly user count is only around 41 million, marking an 86% drop from its peak. The game's token, which launched at $0.009993 in late September, plummeted 76% by November to $0.002392, though the recent bull market has pushed it to $0.004422.
This decline highlights a key risk for TON: while the initial novelty of blockchain-based mini-games might attract a large number of users, retaining them long-term could prove difficult.
Moreover, regulatory scrutiny is another looming concern. Increasing surveillance of social media platforms—exemplified by incidents like Telegram CEO Pavel Durov’s run-ins with French authorities—could erode public confidence in the app and its associated blockchain ecosystem. The increasing focus on user-generated content could also lead to challenges in maintaining the platform’s reputation.
As regulators grow more vigilant about the kinds of content allowed on platforms, Telegram and TON will need to tread carefully.
Additionally, as the crypto market experiences renewed optimism driven by rising prices and institutional support, financial regulators may be gearing up for a new round of oversight. This could include cracking down on unregistered securities, Ponzi schemes, and other high-risk products that typically find their targets in retail investors. These regulatory pressures could complicate TON’s efforts to maintain a secure and compliant platform.
That said, there may be some relief on the horizon. With The incoming Trump administration's pro-crypto cabinet, and Elon Musk potentially influencing U.S. policy on social media (as hinted by his free-speech stance and support for lifting the TikTok ban), there could be a shift toward a less restrictive approach to platforms like Telegram, especially compared to the aggressive regulatory actions seen in Europe.
Through its partnership with Telegram, TON has arguably the greatest potential for user adoption among all Layer-1 blockchains. If it can attract and retain a solid, engaged user base, TON could establish a dominant presence in the crypto economy while also helping Telegram solidify its position in the competitive superapp race.
