Reviving DeFi: How TON and Telegram Could Lead the Comeback

As decentralized finance (DeFi) tokens face a significant downturn, The Open Network (TON) blockchain, backed by Telegram, emerges as a potential lifeline for the struggling DeFi sector. According to Artemis data, between January 2022 and September 2023, DeFi tokens plunged 72%, a much steeper drop than memecoins (down 35%) and smart contract-related tokens (down 48%). In this context, TON’s rise is timely, and its unique ecosystem might hold the key to reviving DeFi.

TON’s Viral Growth: Powered by Telegram

TON's growth is closely tied to Telegram, the globally popular messaging platform with nearly a billion users. This integration allows users to access TON-based apps directly within Telegram, streamlining the user experience. By leveraging this massive user base, TON has proven itself an effective gateway to the world of blockchain for the mainstream audience.

While TON is widely recognized for its applications in gaming and social platforms, the broader potential for its integration in DeFi has been somewhat overlooked. A report by GSR highlights this untapped opportunity, stating.

"TON+Telegram offers great potential for DeFi to finally break beyond its primarily crypto-native audience. With 950 million users and its seamless integration, the ecosystem bypasses many of the user experience frictions that have held DeFi back."

Surpassing Ethereum in Monthly Active Wallets

TON’s rapid adoption is reflected in its monthly active wallet count, which has surpassed that of Ethereum, the longstanding hub of blockchain innovation. In September 2023, following Telegram’s integration of its wallet feature, TON saw its monthly active addresses surge from around 100,000 to 9.9 million by September 2024. By comparison, Ethereum had 5.5 million active wallets in the same month, though Solana and Ethereum layer-2 Base continue to boast higher figures.

Despite these competitive numbers, TON’s growth cannot be ignored. A significant portion of its wallet activity comes from Telegram-based play-to-earn (P2E) games like Hamster Kombat, which amassed over 300 million players within just five months of its launch. This success places the game second only to Subway Surfers, which has seen 304 million downloads. Such user engagement through games underscores the ecosystem's viral potential, both in the gaming sector and beyond.

The Future of DeFi on TON

As DeFi tokens struggle, TON’s ecosystem presents an alternative path forward. Its seamless user experience, integration with Telegram, and rapidly growing active wallet base position it as a platform capable of breathing new life into the DeFi space. If TON can continue leveraging its vast user base and innovative tech, it might just be the key to reviving DeFi and bringing it to a broader, more mainstream audience.

With DeFi at a crossroads, TON’s potential to reinvigorate the sector could mark the beginning of a new era for blockchain finance.