Toncoin (TON) surpassed Cardano’s (ADA) token to become the ninth-largest cryptocurrency by market capitalization on April 9. The question now is whether Toncoin can sustain its impressive upward trajectory.
After experiencing a 13% daily price surge, Toncoin reached $6.65 by 1:45 p.m (UTC), making it the ninth-largest cryptocurrency with a market capitalization of $23 billion. This surpassed Cardano’s market cap of $22 billion, according to data from CoinMarketCap.
The rally occurred just a day after TON Society developers allocated $5 million in Toncoin to incentivize users to verify their identity using palm scanning technology. This project aims to facilitate digital identity verification for Telegram users over the next five years and will reward one million TON to users participating in the proof-of-personhood program.
The growing interest in Toncoin has allowed it to outperform Cardano’s ADA. Over the past month, Toncoin’s price has surged by over 135%, while ADA’s price has experienced a 15% decrease.
Taking a broader view, Toncoin’s price has increased by 183% year-to-date (YTD), while ADA’s price has fallen by 1.30% YTD.
On March 20, Toncoin launched a $115 million community incentive program. This program includes $38 million for token mining and user incentives, $22 million for airdrops, $15 million for The League developer ecosystem, and $40 million for liquidity pool boosts. Its goal is to drive further user adoption.
In contrast to Toncoin, Cardano’s ADA has not generated much interest this year, as investors have been focused on Bitcoin exchange-traded funds (ETFs) and other major blockchain upgrades, such as Ethereum’s Dencun upgrade.
Can Toncoin maintain its current momentum? Toncoin’s price performance has significantly outpaced that of Dogecoin. Over the past month, Toncoin has risen by 130%, while DOGE has only gained 14.8%. Year-to-date, Toncoin is up by 177%, compared to DOGE’s 108% increase, according to TradingView.
While Dogecoin’s price has been driven solely by speculative demand, Toncoin’s utility within the Telegram messaging app can directly contribute to its price appreciation as user adoption increases.
However, there are concerns about Toncoin’s token distribution among retail investors. CoinCarp data shows that over 60% of Toncoin is held by the top 10 holders, and the 100 richest holders possess 93% of the supply.
It is important to note that this article does not provide investment advice or recommendations. Investing and trading always carry risks, and readers should conduct their own research before making any decisions.