Key info:
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Pavel Durov was arrested on August 25.
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Since then, some network activity metrics have skyrocketed.
Since the arrest of Telegram CEO Pavel Durov on August 25, activity on the TON (The Open Network) network has considerably elevated, particularly network charges and each day transactions.
The each day payment paid by all customers on the network reached 34,000 TON on August 26. This equates to just about $200,000 per day, based mostly on the worth of TON on the time of writing (USD 5.49). The TON network has not seen such activity since March and April of this 12 months.
Daily transactions on TON reached an eight-month excessive of as much as 9 million per day.
Interestingly, the burning of utility tokens has skyrocketed on the network together with transactions, following the incident involving the CEO of Telegram. Here you may see the spike in token burning:
Indirectly, the seize of Pavel Durov has prompted, at the very least briefly, Toncoin to be a extra deflationary token, which normally has a delayed impact on the economics of a token and has not been capable of cease its worth falls.
Toncoin has a deflationary mechanism because of which half of the charges paid by all customers who make transactions on the TON network are burned. This half is allotted to a black gap handle, that’s to say, an entry (and no exit) pockets, to which nobody has the important thing. Everyone Tokens despatched to that black gap handle exit of circulation endlessly.
Other indicators of activity on the TON network
The TON ecosystem additionally noticed a rise when it comes to the actions carried out on the chain – as much as 13 million. While these actions, that are measured by the variety of sensible contracts executed, had been growing since days earlier than the arrest, it’s doable that the occasion motivated folks to enter the ecosystem with curiosity and curiosity, or maybe with worry.
Activated wallets (i.e. wallets that make their first transaction) rose to 190,000, the best quantity since June this 12 months. The spike in each day lively wallets is at an all-time excessive, probably influenced by the occasion. Never in historical past have so many individuals concurrently operated on the TON network: greater than 700,000 wallets.
The state of DeFi on TON
The surge in activity motivated by the well-known truth has not managed to vary some traits within the DeFi sector on TON, nevertheless. The whole worth locked (TVL) within the network’s decentralized exchanges has fallen by greater than 50% within the month of August alone. For some motive, persons are withdrawing their locked or staked funds off the network.
There does appear to be a momentary uptick in DeFi activity on TON, particularly in each day buying and selling quantity, over the previous few days. That uptick created new all-time highs in buying and selling quantity, reaching over $9 million, which is equal to $50 million.
What does this spike in TON activity imply?
A fast evaluation of the above metrics appears to indicate that persons are not thinking about staking their Toncoin; they do appear to be motivated by speculating on this token and others on the network; or by rapidly buying and selling their digital property.
As reported by CriptoNoticias, cryptoassets associated to TON have suffered falls of their costs. Toncoin was not spared amongst all: in line with Coinmarketcap, the asset has fallen by as much as 17% within the final month.
The excessive quantity of transactions on the network, an indicator that counts each purchases and gross sales, may very well be indicating that persons are promoting TON-related tokens because of the drop in costs.
This exchange could be completed for safer tokensboth to maintain them on the identical network or to maneuver them in direction of TRON, which appears to be the direct beneficiary of the autumn of the ecosystem, or in direction of different chains.
From the above it may be inferred that this peak of activity all through the network may very well be associated to the uncertainty and worry ensuing from what may occur sooner or later with The Open Network ecosystem.
