Tether’s USDT has emerged as the leading source of transfer activities on Toncoin. After completing airdrop activities, the network has kicked to life, supporting value transfers in the decentralized finance sector.
The report that confirmed USDT as the most active token on Toncoin in October revealed that the chain isn’t for meme coins. It also does not focus on only top tap-to-earn games. Toncoin is also one of the few networks that support native USDT, providing liquidity that e-commerce and advertising infrastructure needs.
Native USDT is also used on the chain, acting as a utility and a gas fee token. USDT’s supply has also increased on the chain, providing more liquidity at 892 million. The traders using the version of the token are estimated to be around two million.
USDT’s growth and Toncoin’s DeFi concerns
The tokens growth on Toncoin is just a bit of its entire supply, which stands at 120 billion. As it stands, Toncoin holds more volume of the token compared to other chains and even some layer-2 chains. Its supply is trying to catch up with Optimism, which is 973 million USDT.
The success of the native USDT brought about the idea of launching a stablecoin tied to UAE’s currency, the Dirham. The platform announced it at the TON gateway event in Dubai. The native USDT is preferred for transactions, far more than the bridged version and the small portion of USDC on the chain.
Toncoin has not announced any incentive for buying or trading any token on its platform. October’s USDT transfers included small portions of microtransactions, reaching 3.25 million. Most transfers are credited to the mini-apps, older tapping games, and new projects. One of its popular games, Catizen recorded about 469,000 transactions. Hamster Kombat has lost steam after the release of its airdrop but still registered 41 million users at its peak.
The value generated from stablecoins on Toncoin has been more than enough to bridge the slow pace of the DeFi sector. While the network boasts more than 800 million USDT, the value of DeFi is gradually disappearing. Toncoin presently holds a total value locked (TVL) of $325 million, ranking behind some L2 chains.
Most values are on TonStakers, the platform’s primary staking protocol. Dedust and Ston.Fi also shares in the locked liquidity. One of the reasons it has regressed is the slowdown of TON in the DeFi sector. The asset slid under $5, leading to a fall in the value of staked TON.
During the recent market correction, TON slid under $4.8. The asset has also held on to a predictable range, showcasing its importance as a utility token and a staked asset. Open interests have also fallen, reaching under $200 million for the first three months. The asset also has 30% of short positions, which may open long traders to attack.
Farming projects and their effect on TON
Toncoin is responsible for so many projects debuting different types of farming techniques. These task-based activities are now more developed compared to tapping games. They issue missions to users and give them several incentives for completing missions. Some tasks require members to send 0.1 TON, adding to the transaction on the platform.
In the past month, TON creation experienced a slight increase. Each day, users generate more than 74,000 TON sales, creating sales pressure in the market. About 67 million TON are in liquid staking, reducing its circulating supply. The asset presently has a supply of more than 5 million with no cap on the tokens made.
The inflation rate of TON every year is 0.6, putting it in the same category as Ethereum but with the former achieving its own through TON burns. Some farm games have their tokens but still enable users to earn small amounts of TON. Other farming games with missions are still entering the chain, leading to an increase in transactions. Also, they create the need to sell TON rewards. As a result of farming apps, users see TON as oversold.