TON Network Sees 95% Drop in New Users Since Peak, TVL Down 72%

In recent days, The Open Network ( TON ) ecosystem has grappled with substantial declines in user engagement, alongside mounting pressure from token sales. Notably, the influx of new users has plummeted by 95% compared to the network's peak in July.

Current analytics reflect waning investor confidence, casting doubt on the ecosystem's long-term viability. According to data from DefiLlama, the Total Value Locked (TVL) in TON reached an apex in mid-July at $773 million, but it has since dwindled to $215 million—marking an over 72% decrease.

This pattern of decline extends to user engagement rates. Dune data indicates that the number of new users hit a peak of 724,465 on September 30, yet, as of February 5, it has decreased to just 33,852, raising critical concerns about the blockchain's appeal moving forward.

The steep drop in engagement has been paralleled by financial losses for investors, as reported on social media. Commentary from users reveals dissatisfaction with current token values, such as Notcoin at $0.0033 and Toncoin at $4.2.

Further data indicates that around 96% of TON token holders, representing over 108 million addresses, are currently incurring losses, with only 4% of investors reaping profits. This contributes to a prevalent negative sentiment among investors, likely fueling higher token-selling rates.

A Telegram-based blockchain, TON has historically relied on tap-to-earn models and GameFi applications to boost user activity. Recently, the TON core team released a strategic development roadmap for the first half of 2025. This plan includes core function upgrades and exploration of new revenue channels to counter declining profits from tap-to-earn games.

Following a renewed partnership with Telegram after parting ways in 2020 due to regulatory issues, the network faces mixed reactions from its user base. Debate persists over Telegram's commitment to decentralization and the potential effects on liquidity and market stability.

The forthcoming success of TON's updated roadmap remains uncertain, as on-chain data continues to point towards notable challenges in maintaining user engagement and investment returns.