Tether Fuels Toncoin: A Rising Star in the Stablecoin Universe?
Toncoin, the native token of the Telegram Open Network (TON), has defied expectations. Often dismissed as a meme token or a platform for tap-to-earn games, Toncoin has surprised analysts with its growing adoption of Tether’s USDT stablecoin. In October, USDT emerged as the most actively used token on the Toncoin network, surpassing bridged stablecoins and highlighting the platform’s potential for real-world applications.
Native USDT: A Boon for Toncoin’s Ecosystem
The presence of native USDT on Toncoin offers several advantages. Unlike bridged versions, native USDT integrates seamlessly with the network, facilitating transactions, e-commerce activities, and even serving as a utility and gas fee token. This integration has attracted over 2 million traders and boosted USDT’s supply on Toncoin to a significant 892 million, enhancing liquidity within the ecosystem.
Toncoin’s success with native USDT doesn’t stop there. Plans are underway to launch another native stablecoin pegged to the United Arab Emirates Dirham, further diversifying the network’s stablecoin offerings and catering to international audiences.
Read more:Toncoin’s Comeback: Can It Reclaim Its Lost Glory?
The DeFi Dilemma: Stagnation or Strategic Shift?
While the influx of stablecoin activity is a positive sign, Toncoin’s DeFi sector faces challenges. Despite holding a respectable amount of USDT (over 829 million), the network’s total value locked (TVL) in DeFi has been declining. This puts Toncoin behind even niche L2 chains, with most of its DeFi activity concentrated on native staking protocols like TonStakers and DEXes like Ston.Fi and DeDust.
The slowdown in TON, the native token, is a contributing factor to the DeFi stagnation. TON’s price drop below $5 has negatively impacted the value of staked TON, leading to a decline in open interest and potential vulnerability for long traders. Additionally, the reliance on USDT for stability within lending protocols suggests a shaky foundation for long-term DeFi growth.
Read more:TONcoin Expands Its Reach: A $5M Synergy with Mantle!
Farming Frenzy: Boon or Bane for Toncoin?
Farming, a popular DeFi activity involving completing tasks to earn rewards, has become a significant driver of activity on Toncoin. These games go beyond simple tapping mechanics, introducing missions and requiring booster packages. While some tasks, like 0.1 TON transactions, increase network activity, the influx of newly created TON through farming may generate selling pressure. This is further compounded by the lack of a cap on TON production, potentially leading to an oversold situation in the short term.
Read more:Toncoin’s Stablecoin Surge: A Billion-Dollar Milestone and Its Impact on TON’s Price!
The Road Ahead for Toncoin
Toncoin’s journey has been intriguing. While USDT adoption and a vibrant farming scene paint a promising picture, the network’s DeFi sector needs a boost. Addressing TON’s price volatility and exploring innovative DeFi solutions are crucial for long-term success. Toncoin’s ability to navigate these challenges will determine whether it truly transcends meme token status and solidifies its position as a force to be reckoned with in the blockchain landscape.
