The TON Ecosystem Suffers a Major Setback: User Engagement Drops 95%, TVL Plummets 72%

The TON ecosystem has suffered in the past week, with significant drops in user engagement and increasing selling pressure. The number of new users has dropped by a staggering 95% since the network’s July all-time high.

The Open Network (TON), a blockchain infrastructure spearheaded by Telegram, has encountered a period of decline in user engagement and escalating selling pressure, according to on-chain data.

These metrics indicate a waning investor confidence and raise questions regarding the ecosystem's long-term appeal.

On-chain data reveals that TON experienced a peak in Total Value Locked (TVL) in mid-July, reaching $773 million. However, since then, its value has been steadily declining. As of today, the ecosystem's TVL stands at $215 million, indicating a drop of over 72% from its all-time high.

This decline is also evident in the drastic decrease in new daily users. Based on Dune data, TON attained an all-time high of 724,465 on September 30. However, as of February 5, that number has sharply declined to 33,852.

This over 95% decrease raises concerns about the blockchain's current and future attractiveness.

Investors in TON projects have expressed their dissatisfaction on social media platforms, highlighting financial losses.

“Never in my life did I ever think I would see Notcoin at $0.0033 and Toncoin at $4.2,” stated one user on X.

Furthermore, data indicates that the majority of TON token holders, approximately 96% (over 108 million addresses), are currently experiencing investment losses. In contrast, only a small fraction (4% or a little over 4.2 million addresses) are experiencing profits. This data suggests a prevailing negative sentiment among TON investors, which may contribute to increased token-selling activity.

A Brief Overview of TON's Journey

TON, a blockchain infrastructure that began as a Telegram project, has utilized tap-to-earn and other GameFi apps to drive adoption and engagement. Less than two weeks ago, the TON core team unveiled its development roadmap for the first half of 2025. This roadmap outlines planned updates to core functions and potential future revenue streams.

TON's expansion strategy comes as a response to its falling revenue, largely attributed to the declining popularity and profitability of tap-to-earn games and other GameFi apps that were once a major revenue stream for the company.

While Telegram severed ties with TON in 2020 due to regulatory pressures, the network recently re-partnered with the messaging app under Trump’s new regulatory approach.

This decision sparked varying reactions among TON's users, with some questioning Telegram's commitment to decentralized principles and others expressing concerns about the potential impact on liquidity and market stability.

The success of TON's newly announced roadmap in the long term remains to be seen, as current on-chain data suggests potential challenges in the near future.