TON (The Open Network) Blockchain Witnesses a Sharp Decline in Transaction Count Share

The TON (The Open Network) blockchain has witnessed a sharp decline in its transaction count share among the layer-one blockchains — from about 50% in September 2024 to around 30% as of Oct. 7.

The Open Network (TON) blockchain has experienced a significant decrease in its share of transactions among layer-one blockchains, dropping from around 50% in September 2024 to approximately 30% as of Oct. 7.

According to data from Footprint Analytics, TON processed about 212.5 million transactions by the end of September, compared to its earlier peak performance. This rapid decline raises concerns about TON’s competitiveness, especially against other major Layer-1 networks like Solana and Ethereum, which have maintained higher transaction volumes.

Factors Contributing to the Decline in Transaction Activity

One of the main reasons for this decline is the rise of other Layer-1 blockchains, such as Arbitrum, Avalanche, and Ethereum, which offer faster transactions and lower fees, making them more appealing to developers and users. Notably, Solana processed over 1.1 billion transactions in September 2024, far outpacing TON's activity.

Moreover, Ethereum has maintained its dominance through upgrades like the Ethereum Improvement Proposal (EIP), which reduces block creation times and enhances the network's overall efficiency.

External factors have also impacted TON's decline. For instance, the recent arrest of Pavel Durov, the CEO of Telegram, caused a sharp drop in the price of Toncoin, the native token of the TON blockchain. Following Durov's arrest, Toncoin's value decreased by 25%. This event triggered a wave of sell-offs, contributing to a broader decline in both network activity and token value.

Bearish Signals Emerging for TON

While TON's transaction activity has been declining, its price is also facing bearish pressure. The TON/USDT pair recently broke down from a rising wedge pattern, which is typically considered a bearish signal that could lead to further declines. Currently, the price hovers around $5.23 after failing to hold support at $5.31.

Technical indicators also align with the bearish trend. The Relative Strength Index (RSI) indicates more room for downward movement, currently at 43.74. Additionally, the exponential moving averages (EMAs) for the 20, 50, 100, and 200-day periods have crossed into bearish territory, suggesting continued selling pressure.

Key support at $4.81 remains crucial for TON. However, a break below this level could accelerate the decline to around $4.62.