Toncoin May Outperform Bitcoin! But Will TON Breakaway From “Risky” Telegram?

Looking at Toncoin, it is clear that it has had a superb year. Over the last 12 months, TON, the native currency, has more than doubled and grown into a top 10 coin by market cap.

The TON Boom

According to Coingecko , TON has a market cap of over $14.7 billion, up a decent 3% over the last day. Although engagement is low, the upside momentum remains.

Considering the recent performance and what the TON Foundation plans, the future could, after all, be bright.

At press time on September 16, TON is down nearly 30% from 2024 highs. However, buyers have the upper hand from a top-down analysis. As it is, TON is inside a massive bull flag. Any break above $6 or $7 in the coming days could trigger another wave of demand in a buy trend continuation formation.

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Will TON Outperform Bitcoin?

With this outlook, the question remains: Will TON outperform Bitcoin and other top altcoins, cementing its place in the top 10?

Well, according to Bitget, a crypto exchange, TON would, in their view, outperform Bitcoin.

This forecast is pinned on the sustained gains over the past few months and improving macroeconomic conditions across the world.

Bold as it may be, Bitget analysts noted that the primary driver that could drive TON higher is the increasing institutional interest in the burgeoning TON ecosystem.

As institutions pour in, favoring OTC purchases of TON as they look to get exposure in DeFi, the coin’s value would also rapidly soar.

According to DeFiLlama, Toncoin DeFi protocols currently manage over $434 million worth of assets.

Driving this growth, the Bitget report claims, will be TON tapping into the vast Telegram user base.

The millions of Telegram users make TON, the utility coin of the TON ecosystem, more attractive to retailers and institutions.

However optimistic as this may look, Bitget analysts are cautious.

Although the Toncoin blockchain was originally developed by Telegram to power a decentralized payment system, DeFi, and a network of dapps, it faced regulatory challenges.

Subsequently, Telegram abandoned the project in 20202.

Since then, Toncoin has been growing independently, built by the community under the guidance of the foundation.

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Telegram Is Massive But Equally Risky: Will Toncoin Breakaway?

The worry is that regulators will begin pressing Telegram and placing the popular app under their crosshairs.

Pavel Durov, the CEO, was arrested in France and accused of enabling criminal activities via Telegram.

Although he has been released, the messaging app has given in to regulators, saying they will begin sharing IP addresses and phone numbers with authorities in response to legal requests.

In light of these risks, Bitget analysts think Toncoin should begin disassociating from the messaging app by reducing their reliance over time.

In their view, the link between Telegram and Toncoin would be a liability, especially as regulators begin to scrutinize the app.  

Though the de-linking might cost Toncoin its broad user base, TON could benefit in the long term if this happens.

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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.