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- Telegram’s TON takeover triggered explosive price action and massive social activity.
- TON rallied 69% after Telegram announced direct blockchain validation control changes.
- Crypto traders embraced Telegram’s TON expansion despite growing centralization concerns worldwide
Toncoin had one of the best weekly performances since Telegram announced its plans to take direct control over the functioning of a part of the TON ecosystem. TON Takeover price has surged by 69% within a span of just 3 days since its announcement on Telegram.
Since Telegram announced its new plans to manage directly the functionality of a part of the TON ecosystem, Toncoin has one of the best weeks of the year. This rapid move sparked trading volume on all crypto exchanges, and pushed the TON token’s prices up in a couple of hours.
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TON rallied by almost 69% following a post by Santiment on X that Telegram would replace the TON Foundation and become the biggest validator on the network, per a statement by the network’s founder, Pavel Durov. In addition, the company announced that it will reduce the network fees by approximately six times, adding more fire to the bull market of the blockchain project.
According to the market data, TON’s price on May 3rd was around the $1.30 level and by the end of the 6th of the month, the price jumped up to the $2.20 mark. This led to the re-emergence of the token in the traders radar because of Telegram’s announcement.
Apart from the price climb, there was a huge surge in online traffic towards TON in the same period.Apart from the price increase, the volume of internet activity has also increased a lot for TON during the same period. After Telegram announced its continued involvement in the network, the social mentions of TON took a sharp rise as seen in Santiment’s chart.
TON Social Activity Explodes After Telegram Announcement
Up to 4 May, it was quite calm on social media regarding TON. Mentions were low within the four hour windows that had the most mentions across most of the assets, with less than 20 mentions in each, which suggests low engagement around the asset.
All things changed when Telegram said that it was getting more deeply into the governance and validation of the TON. Social mentions are up to 91 after 4 hours, social mentions grew by Santiment on May 5. Furthermore, there was not an immediate decrease in the level of conversation after the initial increase throughout many of the windows.
The attention also serves as an indicator that traders weren’t just performing this routine of reacting to a headline but also acknowledging that Telegram is making a long-term impact on the TON ecosystem. Meanwhile, investors seemed to be growing increasingly confident of Telegram’s capacity to speed up adoption with its international user base.
Crypto Traders Embrace Telegram’s Centralized TON Strategy
Santiment also noted an interesting trend in the crypto market in terms of centralization. A couple of weeks ago, many traders expressed concerns over over-concentration of power following Arbitrum’s governance moves were awarded.The tokens were given to Arbitrum’s governance actions by many traders two weeks ago who were angry about its centralized control.
Telegram’s move towards more control over TON, however, garnered the opposite reaction. Both were found to be structurally alike, with centralized influence, but the situation with Telegram was seen as a positive catalyst for future growth by traders, Santiment said.
Moreover, Telegram’s infrastructure and massive user base were seen as advantages that will help expand the TON’s user base worldwide. TON’s surge demonstrates the power of big tech firms to influence market sentiment in the cryptocurrency landscape on a dime. Decentralization is still important across the industry; however, traders appeared to be more interested in the size, network and capabilities of Telegram to expand the TON ecosystem.
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