TON Application Chain and Polygon Team Up for New L2
![Cubic robot balances on blockchain tightrope over crypto ocean](https://prod-coin360-cms.s3.eu-central-1.amazonaws.com/Cubic_robot_balances_on_blockchain_tightrope_over_crypto_ocean_6cd3dfc008.webp)
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TON to Connect to Ethereum via Layer-2 Network
The Open Network (TON), linked to the messaging app Telegram, is launching its first layer-2 scaling network in collaboration with Polygon Labs. On July 9, 2024, TAC and Polygon announced the integration of Polygon CDK and AggLayer with TON L2 to bring EVM-compatible decentralized applications to TAC.
The TON Applications Chain (TAC) will connect to the Ethereum ecosystem, using Polygon's Chain Development Kit (CDK) and AggLayer interoperability protocol to enable Ethereum Virtual Machine (EVM) applications within the TON ecosystem.
TAC aims to bridge the TON and Ethereum ecosystems, enhancing decentralized app integration within Telegram and promoting growth in user engagement. This collaboration is expected to bring more decentralized finance (DeFi) action to TON, with Michael Egorov, founder of Curve Finance, part of TAC’s founding team.
Telegram has been increasingly integrating TON, including using it to pay channel operators a share of ad revenue. However, no specific timeline for the layer-2 chain launch has been announced.
TAC CEO Pavel Altukhov highlighted that EVM compatibility simplifies the user experience for TON users. Recent integration of USDT on TON and the rise of Tap-to-Earn applications, such as Notcoin, have driven the growth of 5.8 million monthly active on-chain wallets on Telegram.
Ethereum developers will gain access to a large user base on Telegram, enabling more real-world crypto applications. The number of daily active addresses on the TON network surpassed Ethereum in June, according to Messari. Despite recent successes, TON has seen a rise in phishing attacks, with risks higher for users with anonymous numbers.
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Toncoin and Polygon: Market Moves and Trends
Toncoin has experienced a significant 376% surge in whale transactions, signaling potential market recovery. Data from the past 24 hours indicates 359,000 TON involved in nine major transactions, with a seven-day high of 962,000 TON on July 3, 2024.
Toncoin has witnessed a spike in DeFi activity, with its total value locked (TVL) rising to $723 million on July 3 and standing at $702 million currently, a 60% increase in the past 30 days. Four of the 16 DeFi protocols on Toncoin experienced a decline in TVL, while the largest protocol, DeDust, saw an 83.6% increase.
Daily trading volume across decentralized exchanges (DEXes) on Toncoin reached an all-time high of $97 million on July 5. Despite the general market decline, TON trades at $7.25, below its 20-day exponential moving average (EMA). If selling pressure continues, TON's price may drop to $7.1, but a bullish shift could push it to $7.46.
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Meanwhile, Polygon's MATIC holders increased by 76% year-on-year in Q2 2024, adding 28 million new independent addresses. Transaction volume on Polygon surpassed 370 million, with the ecosystem's total value locked (TVL) reaching approximately $820 million and over 41 million new NFTs in circulation. Independent NFT buyers on Polygon increased by 40% year-on-year.
Despite these growth metrics, MATIC is in a prolonged bearish territory. MATIC’s price performance has been underwhelming, with a negative return of 30% year-to-date and a 21.29% decline in the last month. Technical indicators suggest continued bearish momentum, potentially leading to further price decreases if the current support level of $0.4356 is broken.
![chart (10).webp](https://prod-coin360-cms.s3.eu-central-1.amazonaws.com/chart_10_8066d71a2d.webp)
Conclusion
The collaboration between TON and Polygon marks a significant step in blockchain interoperability, potentially expanding DeFi applications within the Telegram ecosystem. While TON shows promising growth, MATIC faces challenges. This partnership could reshape the crypto landscape, offering new opportunities for developers and users alike.
FAQs
1. What is the TON Applications Chain (TAC)?
TAC is TON's first layer-2 scaling network, developed in collaboration with Polygon Labs. It aims to connect the TON and Ethereum ecosystems using Polygon's Chain Development Kit and AggLayer interoperability protocol. TAC will enable EVM-compatible decentralized applications within the TON ecosystem.
2. How has Toncoin's market performance been recently?
Toncoin has seen a 376% surge in whale transactions and is trading at around $7.28. Its total value locked (TVL) has increased by 60% in the past 30 days, reaching $702 million. Daily trading volume on decentralized exchanges hit an all-time high of $97 million on July 5, 2024.
3. What growth has Polygon experienced in Q2 2024?
Polygon's MATIC holders increased by 76% year-on-year, adding 28 million new independent addresses. Transaction volume surpassed 370 million, with the ecosystem's TVL reaching approximately $820 million. Over 41 million new NFTs entered circulation, and independent NFT buyers increased by 40% year-on-year.
4. How is MATIC performing in the market?
MATIC is currently in bearish territory, trading below key exponential moving averages. It has a negative return of 48.63% year-to-date and a 23.24% decline in the last month. Technical indicators suggest continued bearish momentum, with potential for further price decreases if the current support level breaks.
This article has been refined and enhanced by ChatGPT.