TON Blockchain Transaction Count is Crashing

The TON (The Open Network) blockchain has witnessed a sharp decline in its transaction count share among the layer-one blockchains — from about 50% in September 2024 to around 30% as of Oct. 7.

As of the end of September, TON processed about 212.5 million transactions, compared to its earlier peak performance. This rapid decline raises concerns about TON’s competitiveness, particularly against other major Layer-1 networks like Solana and Ethereum, which have maintained more stable transaction volumes.

Factors Behind the Decline in Transaction Activity

One of the primary reasons for this decline is the rise of competing Layer-1 blockchains such as Arbitrum, Avalanche, and Ethereum. These networks offer faster transactions and lower fees, making them more attractive to developers and users. Solana, in particular, processed over 1.1 billion transactions in September 2024, dwarfing TON’s activity.

Ethereum has also maintained its dominance through upgrades like the Ethereum Improvement Proposal (EIP), which enhances block creation times.

External factors have also played a role in TON’s decline. Notably, the recent arrest of Pavel Durov, the CEO of Telegram, caused a sharp drop in the price of Toncoin, the native token of the TON blockchain. Following Durov’s arrest, Toncoin’s value plummeted by 25%. This event triggered a wave of sell-offs, contributing to a broader decline in both network activity and token value.

Bearish Signals Ahead For TON?

In addition to falling transaction counts, TON’s price is also under pressure. The TON/USDT pair recently broke down from a rising wedge pattern, a bearish signal that often predicts further declines. Currently, the price hovers around $5.23 after failing to hold support at $5.31.

The technical indicators remain bearish. The Relative Strength Index (RSI) sits at 43.74, suggesting more room for downward movement. Moreover, the exponential moving averages (EMAs) for the 20, 50, 100, and 200-day periods have crossed into bearish territory, signaling continued selling pressure. Key support at $4.81 remains critical. However, a break below this level could accelerate the decline to around $4.62.