Toncoin (TON) has overtaken Cardano’s ADA to claim the ninth position in market capitalization. With its recent surge, can Toncoin sustain its upward momentum and potentially surpass Dogecoin next?
Toncoin’s Ascendancy to 9th Place
Following a remarkable 13% daily price surge, Toncoin reached $6.65 by 1:45 p.m (UTC), securing the ninth spot among cryptocurrencies with a market capitalization of $23 billion, surpassing ADA’s $22 billion market cap, according to data from CoinMarketCap.
The rally coincided with TON Society developers allocating $5 million Toncoin to incentivize users for identity verification using palm scanning technology. This initiative aims to enable digital identity verification for Telegram users over the next five years, offering one million TON to participants in the proof-of-personhood program.
Toncoin’s increased traction has outpaced Cardano’s ADA, with TON witnessing a remarkable 135% surge over the past month, while ADA faced a 15% decline.
Zooming out, Toncoin has surged 183% year-to-date (YTD), contrasting ADA’s 1.30% YTD decrease.
Toncoin’s Initiatives for Growth
Toncoin initiated a $115 million community incentive program on March 20, allocating $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, aiming to stimulate user adoption.
In contrast, Cardano’s ADA saw subdued interest this year, with investor attention diverted towards Bitcoin exchange-traded funds (ETFs) and major blockchain upgrades such as Ethereum’s Dencun upgrade.
Sustaining Momentum: Toncoin vs. Dogecoin
Toncoin’s performance has eclipsed that of Dogecoin significantly. Toncoin surged 130% in the past month, while DOGE only recorded a 14.8% gain. Year-to-date, TON has surged by 177%, whereas DOGE’s price has increased by 108%, according to TradingView.
Toncoin’s utility within the Telegram messaging app offers a direct avenue for price appreciation with increasing user adoption, unlike Dogecoin, which relies primarily on speculative demand.
Concerns and Considerations
However, Toncoin’s token distribution could raise concerns among retail investors. Data from CoinCarp suggests that over 60% of Toncoin is held by the top 10 holders, while the 100 richest holders control 93% of the supply. This concentration of ownership may impact market dynamics and investor sentiment moving forward.
Featured Image: Freepik
