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 trend.
After a 13% increase in its daily price, Toncoin reached $6.65 by 1:45 pm UTC, resulting in a market capitalization of $23 billion. This surpassed ADA’s market cap of $22 billion, as reported by CoinMarketCap.
The surge in Toncoin’s value came just a day after TON Society developers allocated $5 million in Toncoin to incentivize users to verify their identity using palm-scanning technology. The project’s goal is to enable digital identity verification for Telegram users over the next five years. Users participating in the proof-of-personhood program will receive 1 million TON.
Toncoin’s growing popularity has helped it outperform ADA. Over the past month, Toncoin’s price has increased by over 135%, while ADA’s price has dropped by 15%.
Taking a broader perspective, Toncoin’s price has risen by 183% year-to-date, while ADA’s price has fallen by 1.30%.
Toncoin introduced a $115 million community incentive program on March 20. This program includes allocations of $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. The primary objective is to drive user adoption.
In contrast, ADA has not generated much interest this year, as investor attention has been focused on United States Bitcoin exchange-traded funds (ETFs) and other significant blockchain upgrades, such as Ethereum’s Dencun upgrade.
Toncoin’s price performance has far exceeded that of Dogecoin (DOGE). Over the past month, Toncoin has risen by 130%, while DOGE has only gained 14.8%. Year-to-date, Toncoin is up by 177%, while DOGE is up by 108%, according to TradingView.
Toncoin’s utility within the Telegram messaging app sets it apart from speculative-driven demand for Dogecoin. This utility can directly contribute to Toncoin’s price appreciation as user adoption increases.
However, the token distribution of Toncoin may raise concerns among retail investors. According to CoinCarp data, the top 10 holders own over 60% of Toncoin, and the top 100 holders possess 93% of the supply.
It’s important to note that this article does not offer investment advice or recommendations. Investing and trading carry risks, and readers should conduct their own research before making any decisions.