Why am I confident about the prospects of TON in the next 6 months?
Regardless, the TON blockchain and ecosystem are no longer what they used to be.Author: Howard Peng, Head of Developer Relations for TON Asia
Compiled by: Zen, PANews
TL;DR
In the first and second quarters of 2024, the number of developers on the TON blockchain is rapidly increasing. This influx of talent is just the first step, and high-quality projects will emerge in the future, leading to a thriving ecosystem. Developers bring quality projects, which in turn attract more funding into the TON blockchain. The prosperity of the ecosystem is expected to manifest in one or two quarters.
Many excellent and experienced teams are working across various fields, not just in DeFi, DEXs, yield farms, or lending products, but also in practical DApps. Most importantly, Telegram Stars play a key role and have expanded some ideas in The Open League Hackathon / DoraHacks.
Currently, some interesting projects are emerging. I believe that the success path for TON may not follow past experiences. While DeFi is still relevant, TON's killer application may be a combination of "gaming + finance." From what I observed at the DoraHacks hackathon, there are many interesting projects with great talent in smart contract coding. I look forward to seeing more innovations in the near future.
I am very surprised by the number of emerging DeFi projects. Currently, many people believe that TON is in a "Cretaceous-like period," with countless opportunities and projects emerging. Projects built on TON may provide the "most unfair" advantage.
As I mentioned earlier, I believe this is a great opportunity for talented developers in Asia. Additionally, Telegram Stars could become the most successful fiat on-ramp in the crypto industry. Given the recent global environment and supportive messages, I believe the second half of 2024 will be very exciting.
1️⃣ Developer Numbers are Growing
Based on my experience with BSC (limited to the ETH DeFi Summer of 2020 and the BSC boom in early 2021), there is usually a time lag between developers entering the ecosystem, creating products and content, and attracting a large number of users.
We can attribute this growth of TON to Notcoin's listing on Binance or Hamster Combat bringing users from outside Web3. However, objectively, we can assess the growth in developer numbers through the following data points. To evaluate the number of developers from a data perspective, we can use the following methods:
The number of development teams in developer Telegram chats;
SDK call data from TonConnect;
Electric Capital's Q2 2024 developer report.
Number of Developers in TG Chat
According to the latest data, our developer community is growing. The total number is increasing, and the proportion of CN developer community members is also on the rise.
This also means, as previously mentioned, that Asia should be the most important market for TON. This region not only has a large number of developers but also these developers have rich experience in creating and managing mini-apps, which is crucial for developing innovative solutions and driving ecosystem growth. Furthermore, Asia's rapid adoption of new technologies and its large, tech-savvy population make it an ideal market for TON to expand its influence. By focusing on Asia, we can leverage the unique advantages and expertise of local developers, ultimately contributing to the overall success and adoption of the TON blockchain.
TonConnect SDK Download Data
On the other hand, TonConnect's download numbers are rapidly increasing. This indicates that the number of DApps on TON is growing, which is a very positive sign.
Moreover, more and more people are coming to the TON blockchain, integrating TON support into their wallet systems. This is a good signal for the health of the ecosystem and future growth potential. The increasing adoption of TonConnect by developers indicates their strong interest in building on the TON platform. This growth in SDK downloads not only reflects the expanding developer community but also highlights the usability and functionality of the TonConnect SDK, making it the preferred choice for developers. The increasing support for TON from wallet systems is another key factor. This indicates trust and recognition from the broader crypto community, making it easier for users to interact with DApps and securely manage their assets. As more wallets support TON, user confidence will increase, leading to higher adoption rates and a more active ecosystem. Overall, these trends suggest a bright future for TON, driven by a strong developer community and increasing user participation.
Electric Capital's Q2 2024 Developer Report
According to Electric Capital's developer report, we can see significant trends in industry development. "Other L1s are stagnating, and developer ecosystems are slowing down." This supports the view that there is a correlation between the number of developers and Web3 price trends. Additionally, TON still has a lot of potential and growth space that has not yet been fully realized. Furthermore, I want to emphasize the unique aspects of TON relative to other L1s. TON has a wealth of advanced technologies that need to be learned, making it more of a Web2.5 path rather than purely Web3.
Conversely, developers should leverage their Web2 experience to expand their strategies, imagining it as utilizing strategies in traffic-driven products like WeChat. It is important to reiterate that I believe TON offers a more diverse and flexible environment that can attract a large number of Web2 developers. With rich Web2 development experience, developers do not need to start from smart contracts. Thanks to Telegram Stars, you can first test your business in the market and achieve great success.
2️⃣ Many Excellent Teams are Emerging
The biggest question is, where can we find these high-quality teams and guide them in the right direction? Based on my time reviewing projects on DoraHacks over the past few weeks, I can say there are many. Generally, the projects I see can be categorized into several types: DeFi, DEXs, LSD-LSTs, yield optimizers, games, user acquisition tools, etc.
Current Issues with Telegram Games
In the months since Notcoin's launch, I have seen many projects building exactly the same products. Our evaluation criteria have become fatigued, and user engagement and willingness to play games have significantly declined. Although my previous article mentioned that games like Hamster, Blum, Catizen, and Yescoin boosted Telegram user activity, similar games ultimately diminish the overall experience.
The main question now is, "Does your game still attract users to play beyond points and token rewards?" This is the core issue.
What Kind of Games Can Be Developed?
I have seen some interesting projects that already have established resources capable of attracting a large number of users. For example, some major companies related to Chinese live streaming platforms have approached us with proposals. I believe this could be the next scenario for Telegram mini-apps and the TON ecosystem. We will wait and see.
In addition, I think more socially related games that help people meet new friends and transition to real-life interactions, as well as AI-driven life simulation games that allow people to randomly meet and make new friends, will be essential, providing another path beyond DeFi. For example, Pokémon Go brought many positive effects by allowing people to team up and meet new friends. This is a good thing.
More Projects, More Momentum, More Innovation
Whether it's ecosystem feedback, recent questions raised by people in the community, or projects reaching out to us (Ton Foundation), I can feel the quality and quantity are increasing.
Additionally, based on the feedback I received while reviewing projects on DoraHacks, it is not surprising that higher quality is emerging in this space.
For me and anyone at the foundation, the core value is always to consider which path is more beneficial for the community and the TON blockchain.
3️⃣ The Open League Hackathon in Collaboration with DoraHacks
Last week, we completed two parts of the online presentation and announced the winning teams. Before revealing the winning projects, I want to highlight some projects that impressed me. Due to bandwidth limitations, I cannot review all projects in detail. Additionally, some hidden "gems" may not have been selected or showcased in the online presentation. But this does not mean these projects are not good. There are various reasons, including different evaluators and standards.
This hackathon had over 1,000 projects participating, and even with a 50% extraction rate, there are still over 500 projects that I could not check all; whether it be demo videos, mini-apps, or smart contract code (if any). Overall, I just want to reiterate and emphasize that the quality of the projects this time impressed me. This is not only because there are more DeFi projects but also because I saw more talented teams with diverse backgrounds. Regardless of their language, ethnicity, or nationality, this is encouraging.
"Most importantly, I saw many high-quality examples of Telegram mini-apps and products." As mentioned earlier, more solutions are emerging that are not just "on-chain" focused but closer to the general public. For example, e-commerce, live streaming on TON, products similar to Calendly, and any other usability products that enhance user value and explore TON innovations. I think this is the beauty of TON and Telegram.
Some Excellent Projects I Remember
Before pasting the list I have, I must say these are my personal views and do not represent any entity or anyone; purely my personal taste. Perhaps… some future potential seems positive and interesting to me. The evaluation criteria include the following elements:
Tracking Quality (0-5): The future potential of the project, including the business model, a clear vision for future plans, and monetization strategies. Does it bring more users to TON?
Team Structure (0-5): This score assesses whether the team is well-structured. While this is very subjective, I think it is important. Hackathon projects still need a good proposal and a clear, concise video presentation. Additionally, high trust between co-founders can help the project overcome many issues and elevate the product to the next level.
TON Orientation (0-5): Evaluates whether the project is purely related to TON and whether it can help the TON blockchain (not just mini-apps). Projects that have not completed smart contracts (whether in FunC or Tact language) typically do not score high.
TApps Quality (0-5): The score is for the Telegram mini-app itself. It considers UI/UX design and all the details when users start using it. Guiding users and providing detailed information for easy onboarding is key.
Uniqueness (0-5): This score determines whether the project is unique and different. While some projects will inevitably be imitators (e.g., DEXs), it is important to stand out. However, game projects may not score high in this category because many are doing the same thing.
After explaining my methodology, I also want to emphasize a few points:
For the gaming category, if a project is just "click-to-earn," that is perfectly fine. But it would be better if there were more innovations. For me, opening a game now and starting to invite my friends feels negative. But I still keep an open mind about games, though I feel something different is needed. There are many DeFi projects. It is nice to see some projects leveraging non-oracle topics more and seeing the basic logic of DeFi lego built on STON.fi or DeDust.io. Very surprising, and I am glad to see that.
Curdle Protocol: This team has considerable experience on TON and is still young. I met them at a community meetup in Taiwan last year. Their project focuses on the exchange of stablecoin/LSD assets, basically based on what we know about Curve AMMs. The hardest part is overcoming the FunC barrier and bringing it to reality. Their speed of project delivery is impressive.
Beecon: This community tool is built by an Asian team. It is very similar to the WeChat tool I used before. Although it is not widely used yet, I really like this management tool for TG group owners, etc. Worth trying and capturing.
InOne: This is almost like Linktree but in a Telegram mini-app. I particularly like that it can monetize by allowing people to book calls. As a contact for the foundation, I receive many messages daily suggesting "let's have a call." While I rarely reply or book calls, I am glad to see more tools like this to fill more fragmented time and leverage Telegram Stars.
Swipy: This "swipe-to-earn" app is like the Telegram mini-app version of Tinder. While there are more business models to explore internally, I am glad to see more people trying and innovating in this area. However, social applications of this kind typically do not rely on the TON blockchain yet. We will wait and see if they can diversify and extend more on-chain activities to off-chain and TG records.
TON Hedge: This is a pool model for options products. Similar to what we have seen in EVM before, more like Hegic, etc. The best part is its good and easy-to-use UI! I love seeing how good UX can convert Telegram users into the DeFi world.
For the complete list, please see the notion page.
4️⃣ Conclusion
Perhaps it is not "TON needs DeFi," but rather "the DeFi space needs TON." Apart from TON, I do not see any other platform that may grow in the next 3 to 5 years. For me, the most important insight is that "the beauty of TON lies in our ability to attract Web2 developers through the convenience of Telegram modules, mini-app frameworks, and the ease with which people can try products."
In any case, the TON blockchain and ecosystem are no longer what they used to be. Compared to six months ago, we now have many projects, especially in the gaming sector. The purpose of this article is to introduce some interesting projects from DoraHacks and emphasize that the next six months for TON are full of potential.
