Toncoin Rises to Ninth-Largest Cryptocurrency, Overtaking Cardano Amid Incentive Drive
Summary:
Toncoin (TON) overtook Cardano's (ADA) token to become the ninth-largest cryptocurrency by market capitalization after a 13% daily price rise. The increase came after TON Society's developers committed $5 million worth of Toncoin to encourage users to verify their identities. Amid increased interest, TON launched a $115 million community incentive program. However, its token distribution could raise retail investor concerns as the 10 largest holders own over 60% of Toncoin.
On April 9th, Toncoin (TON) surpassed Cardano's (ADA) digital currency, securing the position of the ninth biggest cryptocurrency by market capitalization. Is this dramatic rise in TON likely to sustain?
Securing a profit of 13% daily, TON's value elevated to $6.65 at 1:45 p.m (UTC), placing it as the ninth-largest cryptocurrency with a market cap of $23 billion. This leap surpassed ADA's market cap of $22 billion, according to data from CoinMarketCap.
The rocketing of TON comes after TON Society developers reserved $5 million worth of Toncoin, intended to encourage users to validate their identities through palm scanning technology. This initiative targets the authentication of digital identities for Telegram users within the next half-decade, allocating one million TON to participants of the proof-of-personhood scheme.
This recent spike in TON's interest resulted in it overcoming Cardano's ADA. Over the previous month, TON's price leaped by well over 135%, while ADA's price slipped by 15%.
Meaningfully, over the year, TON's price escalated by 183%, whereas ADA marked a decline of 1.30%.
On March 20, TON unveiled a $115 million community incentive initiative, with allocations of $38 million for token mining and user rewards, $22 million for airdrops, $15 million devoted to The League developer ecosystem, and $40 million for strengthening liquidity pool. The main goal of this initiative is to stimulate increased user adoption.
This year, in comparison to Toncoin, Cardano's ADA has witnessed lower interest due to investors' focus being more inclined towards Bitcoin exchange-traded funds (ETFs), and other substantial blockchain advancements such as Ethereum's Dencun upgrade.
Toncoin's price trend has substantially outperformed Dogecoin. Over the last month, TON soared by 130%, while DOGE increased merely by 14.8%. Over the year-to-date, TON surged by 177% and DOGE hiked up by 108%, as shown by TradingView data.
While Dogecoin's price development is solely propelled by speculative demand, Toncoin's practical application in Telegram's messaging app can contribute directly to its price increase, as more users adopt the platform.
However, Toncoin's token distribution could pose as a potential point of apprehension for retail investors. Data from CoinCarp indicates that the 10 largest holders have control over more than 60% of Toncoin, whereas the 100 wealthiest holders possess 93% of the supply.
Please note that this article doesn't provide investment advice or recommendations. Every investment and trading move holds risk, and readers should carry out their own research to make informed decisions.
Published At
4/9/2024 6:16:19 PM
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