Almost every day this month, Telegram’s “Open Network” (TON) blockchain shows more daily active addresses than Ethereum. TON’s large user base could be the source of this stealthy “flippening,” even if some contend the data does not fully depict the situation.

Delphi Digital commented on X on June 10, “The Flippening CT ignores,” noting “TON’s quiet growth driven by Telegram’s 900 million user base has driven its daily active addresses above Ethereum.” Delphi Digital asserted that “TON is a wager on Telegram’s distribution,” and inquired about the sustainability of its anticipated growth to surpass Ethereum in the long run.

Table of Contents

TON’s Growth Driven by Telegram’s Vast User Base

TON and Ethereum have been neck and neck since May 17, when TON first exceeded Ethereum, according to data from Artemis, which defines DAA as the number of distinct wallets executing daily transactions on a blockchain. With a record 568,300 DAAs on June 3, TON has kept its lead, outperforming Ethereum on 10 of 11 days thus far in June. Artemis data reveals that Ethereum hasn’t reached those levels since September 13, 2023.

Still, the photo reveals more. Much of Ethereum’s user activity has moved to layer 2 (L2) scaling solutions; therefore, a straight comparison is quite deceptive.

Ethereum’s Layer 2 Solutions Complicate Direct Comparisons

For instance, on June 11, alone, three of the leading Ethereum layer 2s, Arbitrum, Base, and Optimism, witnessed a combined 1.3 million daily active addresses. Co-founder Vitalik Buterin, part of Ethereum’s future map, has long favored leveraging L2s to scale the main blockchain.

READ: Current Status of Bitcoin and Cryptocurrencies! – June 1

This Might Interest You: Federal Reserve Holds Rates Steady Amid Inflation Concerns

Integration of Tether and New Features Boost TON Activity

One can attribute TON’s increase in network activity to various recent events. While the “tap-to-earn” token Notcoin has had 35 million users registered since its introduction five months ago, Telegram has incorporated the Tether (USDT) stablecoin on TON. Completing different social tasks helps one earn Notcoins.

On June 6, Telegram also introduced Telegram Stars, an in-app currency for digital purchases. The popularity of Telegram trading bots has also helped to drive more TON blockchain usage.

Even if TON’s present expansion is remarkable, its long-term viability is yet unknown. This changing scene will depend much on the ongoing acceptance of Ethereum’s L2 solutions and upcoming developments.

Click here to get the latest news from Coin Engineer!