Key Points
- TON surpasses Ethereum in daily active addresses (DAAs) in 10 of the last 11 days.
- The growth is driven by Telegram’s massive user base of 900 million.
- However, the data does not account for Ethereum’s Layer 2 scaling solutions.
- Ethereum Layer 2 solutions collectively surpass TON’s daily active addresses.
Telegram’s blockchain, The Open Network (TON), has recently recorded more daily active addresses than Ethereum almost every day this month. While this may seem like a significant achievement, a deeper look reveals that the full picture includes vital details about Ethereum’s Layer 2 solutions.
TON’s Quiet Growth
TON’s surge in daily active addresses is noteworthy, with Delphi Digital pointing out the potential of a “quiet flippening” due to Telegram’s extensive user base. On June 10, Delphi Digital highlighted this milestone, suggesting that TON’s growth is heavily fueled by Telegram’s 900 million users.
According to Artemis, which tracks daily active addresses (DAAs) as the number of unique wallets making a daily transaction on a blockchain, TON has been outperforming Ethereum since May 17. On June 3, TON achieved a record 568,300 DAAs, a level Ethereum hasn’t reached since September 2023.
TON flips ETH in daily active users, but that’s not the full picture#ethereum #ETH #the-open-network #TON #notcoin #NOT #tafouio #cryptonews pic.twitter.com/P6owrAqq8Z
— tafou.io (@tafouio) June 13, 2024
The Full Picture: Ethereum’s Layer 2s
However, this comparison does not consider the activity on Ethereum’s Layer 2 (L2) scaling solutions. As Ethereum transactions increasingly move to L2s to improve efficiency and reduce costs, much of the user activity occurs off the main Ethereum blockchain.
For instance, on June 11, three of Ethereum’s top L2 solutions — Arbitrum, Base, and Optimism — collectively recorded 1.3 million daily active addresses. This significant activity on L2s means that a direct comparison between TON and the Ethereum mainnet without considering L2s does not fully represent user engagement within the Ethereum ecosystem.
Ethereum co-founder Vitalik Buterin has consistently supported the use of L2s as part of Ethereum’s long-term scalability strategy, further emphasizing the importance of these solutions in the ecosystem.
TON flips ETH in daily active users, but that’s not the full picture https://t.co/jxsfk5Rcym #DelphiDigital #TheOpenNetwork #DailyActiveAddresses
— Entrepreneur_cm (@entrepreneur_cm) June 13, 2024
Market Implications
The data highlights the importance of understanding the complete context when comparing blockchain metrics. While TON’s growth is impressive and indicative of its potential, Ethereum’s broader ecosystem, including its L2 solutions, continues to drive substantial user activity.
As the blockchain space evolves, both TON and Ethereum will likely continue to play significant roles, each with unique strengths and growth drivers. For investors and users, recognizing the nuanced dynamics between mainnets and their scaling solutions is crucial for informed decision-making.
