The Rapid Rise of TON and Telegram: Implications for Future Cryptocurrency Adoption
In Brief
In September 2023, the TON Foundation and Telegram established a strategic partnership aimed at shifting approximately 30% of Telegram’s user base into the TON ecosystem by the year 2028. Let’s uncover the highlights of this collaboration.
With a bold vision to onboard 30% of Telegram's users into the TON blockchain by 2028, a strategic partnership was formed between the TON Foundation and Telegram in September 2023, as highlighted in a recent report. Animoca Brands .
By leveraging TON’s cutting-edge blockchain capabilities alongside Telegram’s expansive global footprint, our collaboration has made significant strides in just one year. The mutual advantages of this partnership are evident in the skyrocketing crypto adoption and rapid growth of Telegram Mini Apps.
Laying the Groundwork for Success
This partnership was primarily built on facilitating a seamless transition for traditional Web2 users into the Web3 space by integrating TON's infrastructure with Telegram’s Mini Apps. Key objectives included engaging users, transforming them into crypto enthusiasts, and ensuring their retention within the blockchain ecosystem.
Photo: Animoca Brands Report
By July 2024, this strategy had already met significant objectives. Telegram's Mini Apps boasted over 500 million monthly active users (MAUs), contributing to more than half of the 950 million total MAUs on the platform. Moreover, 30 million users ventured into the world of cryptocurrencies, a major step forward.
Photo: Animoca Brands Report
The Three-Step Strategy: From Gaming to Decentralized Finance
The growth strategy of this alliance revolved around three pivotal stages, each designed to enhance user engagement.
Engaging Users Via Mini Apps and Social Gaming
At the inception of the partnership, the primary focus was on promoting Telegram Mini Apps through fun, tap-to-earn social games. These engaging games provided a non-threatening introduction to the broader ecosystem, acting as a gateway for users. Some notable early successes included:
- Notcoin, a community-based game launched in January 2024, attracted 35 million participants before its token generation event (TGE).
- In the months following their March 2024 releases, Hamster Kombat and Catizen grew to 300 million and 39 million players, respectively.
Photo: Animoca Brands Report
Currently, more than half of Telegram’s user base engages with Mini Apps, positioning them as a fundamental aspect of the TON-Telegram strategy.
Turning users into cryptocurrency adopters was the next challenge once they were introduced via Mini Apps.
- The Notcoin initiative enabled the activation of 11 million wallets within three months post-token launch, significantly increasing the total number of TON wallets to 8.5 million.
- The combined efforts of Hamster Kombat and Catizen led to the creation of over 5 million additional wallets, with further activations driven by the introduction of the DOGS meme currency.
Photo: Animoca Brands Report
As of October 2024, Telegram’s non-custodial wallet, TON Space, celebrated reaching 100 million registrations, showcasing the effectiveness of the partnership in transitioning users toward blockchain integration.
User Retention through DeFi and Incentives
As the TON ecosystem expanded, ensuring user retention became paramount. While initial engagement was spurred by GameFi initiatives, a diversified strategy became crucial, incorporating DeFi applications and community-led projects. Significant developments included:
- The Open League, a performance-based reward system, distributed Toncoin and other incentives to both users and developers, promoting measurable engagement.
- Incentive programs such as the Degen Airdrop and Normie Airdrop encouraged users to trade and explore decentralized applications (dApps).
- Community ecosystems for meme coins like DOGS, which had 17 million holders by November 2024, thrive thanks to initiatives from the Memlandia support organization.
Photo: Animoca Brands Report
Explosive Growth in Blockchain and Application Metrics
The collaboration between Telegram and the TON Foundation has significantly enhanced key metrics within the TON blockchain. The number of active wallets skyrocketed from 0.8 million in September 2023 to an impressive 32 million by October 2024.
Photo: Animoca Brands Report
Of these wallets, 22 million indicated non-zero balances, suggesting sustained user activity with cryptocurrencies. Toncoin represented 60% of the monthly on-chain transactions, surging from under 10 million to 220 million. The rise of liquid staking and decentralized exchanges has pushed the ecosystem's total value locked (TVL) to $726 million.
In contrast, Ethereum and Avalanche took a considerably longer time to achieve 30 million monthly transactions. However, TON’s adoption rate outpaced several leading Layer 1 blockchains in just a five-month period.
Photo: Animoca Brands Report
This partnership has transformed Telegram from a mere messaging app into a versatile hub that seamlessly incorporates blockchain technology and fosters social interactions. Telegram Mini Apps have emerged as a driving force behind user engagement, enhancing interactions and income potential. By mid-2024, a striking 70% of the top 50 Telegram channels were centered around TON-related projects, underscoring the importance of Mini Apps to the platform.
As for Telegram, this surge in user activity translated into phenomenal revenue growth. The number of premium subscribers skyrocketed from one million in December 2022 to ten million by September 2024, generating $285 million in that year alone. Additionally, contributions from the ad platform and collectibles marketplace totaled $276 million, further diversifying revenue streams.
An extra $225 million came to Telegram following the integration of Toncoin as the exclusive currency for its advertising services. Collectively, these revenue channels positioned Telegram on track to reach $1 billion in annual revenue by the end of 2024, marking its first profitable year and laying a strong foundation for a planned initial public offering (IPO) before 2026. This financial evolution illustrates how effectively the TON-Telegram alliance has spurred both economic growth and technological advancement.
Embracing Decentralized Governance and Futures Ahead
Acknowledging the importance of community-led growth, TON is progressively adopting a decentralized governance model. The establishment of Society DAO in December 2024 empowers community members to allocate funds and drive innovation, ensuring a more inclusive and adaptive ecosystem.
The partnership has ambitious goals for the future, including the onboarding of 500 million users into the TON ecosystem by 2028. Achieving this objective will require continuous innovation, a variety of applications, and sustained collaboration between TON and Telegram.
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