Toncoin has seen a surge in user count since early 2024, fueled by ecosystems like Hamster Kombat and Notcoin. Prices soared from about $2 to $8 by mid-2024, positioning it among the top ten cryptocurrencies.

However, in contrast to this user growth, Toncoin’s value has faltered since August 2024, leading to an almost 70% decline in its DeFi Total Value Locked (TVL)—dropping from $770 million to just $170 million within six months.

In August, Pavel Durov, the creator of Telegram, was charged by French authorities for money laundering related to the app. This news negatively impacted Toncoin’s market performance. Moreover, user participation in DeFi applications on Tonchain decreased, pushing holders to withdraw funds for safer options, shifting towards staking, which has seen nearly 84 million TON staked recently.

In the meantime, the number of active wallets on Tonchain has exceeded 40.5 million, although daily active users have decreased to around 170,000 recently. The exodus of Tapswap, a significant DeFi protocol, to the BNB Chain added further pressure on Toncoin’s market.

This report examines the bizarre situation where while Tonchain’s user base expands, the overall assets in its DeFi contracts are diminishing. Why is this occurring?

The intriguing narrative raises questions about the future strength of the Toncoin ecosystem amid ongoing external pressures and internal challenges.