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Layer 2 networks are coming to the TON blockchain associated with Telegram
TON blockchain’s TVL has skyrocketed to $671.43 million since January 1, reflecting an increase of over 4,600%.
Cryptography developers have introduced layer 2 networks to help blockchain networks improve their scalability issues.
(Photography)
Published June 26, 2024 at 6:28 pm EST.
Layer 2 networks, auxiliary blockchains aimed at improving transaction speed and throughput for users, are spreading on The Open Network (TON), which is closely associated with the popular messaging app, Telegram.
Initially emerging on the Ethereum blockchain as part of its rollup-focused roadmap, Layer 2 networks have been widely understood to be part of Ethereum’s endgame by virtue of addressing network scalability issues that result in high levels of congestion and expensive transaction fees.
However, L2s have expanded to Bitcoin with the advent of newer protocols such as Merlin Chain and have now infiltrated the TON blockchain. Two examples include the Atlas protocol and the TON App Chain (TAC).
Layer 2 blockchain networks are “extremely important for the onboarding of the TON ecosystem and can be extremely beneficial for the long-term growth of the space,” said Jehan Chu, an investor in the TON ecosystem and managing partner of the company blockchain venture capital Kenetic, in a WhatsApp message to Unchained.
Also, “some L2 on TON [are] raising as we speak,” he wrote the head of growth at Ethena Labs, who goes by Seraphim, or @MacroMate8 on X.
Adding L2 to Attract Ethereum DeFi Apps
Both Atlas and TAC advertise their compatibility with the Ethereum virtual machine.
“A TON EVM L2 is vital to the short/medium term growth of the TON ecosystem as major DeFi EVM applications are not immediately ready to be deployed on TON VM,” said Chu, whose company, Kenetic, backs Atlas.
He said that, with Atlas, “developers can quickly and securely access TON’s huge user base, helping to grow DeFi and total value locked (TVL), with the goal of launching TON in a long-term native.”
A presentation shared with Unchained for TON App Chain also highlights how people are building and raising capital to address compatibility between TON and the Ethereum virtual machine. One of its founders includes Michael Egorov, who earlier this month suffered nine-figure settlements on several DeFi lending protocols. The TAC deck says the network aims to have a mainnet launch in September 2024.
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TON takes over
L2’s arrival on the TON blockchain comes as the network is gaining attention in many different ways.
According to data from DefilLama.
As the price of the network’s native cryptocurrency has skyrocketed more than 220% over the same period from $2.33 to $7.56, the growth of the USD-denominated TON TVL is more staggering than the TON-denominated figure.
On January 1, users had $14.23 million locked into the network, and six months later, the figure rose to $671.43 million, a percentage increase of more than 4,600%.
Part of the rise of the TON blockchain has stemmed from a series of click-to-earn games that have garnered considerable popularity among Telegram users. For example, Hamster Kombat has 46 million subscribers, while Catizen has around 4.5 million users.
To know more: Could the TON blockchain associated with Telegram be the “next Solana” and challenge Ethereum?
Part of the Pantera Capital bags
TON has become a favorite among major investment firms. Specifically, venture firm Pantera Capital, which has $5.6 billion in assets under management, is doubling down on investments in the TON ecosystem, after announcing in May that the firm made its largest investment ever. made in the network.
Pantera is currently raising capital for a new fund called “Pantera TON Investment Opportunity” and those interested in the fund can fill out a short questionnaire which states that the minimum investment is $250,000.
“TON is a Layer 1 network originally designed by Telegram and driven by the open source community. We believe TON has the ability to bring encryption to the masses because it is widely used within the Telegram network,” which has over 900 million monthly users, he wrote Dan Morehead, managing partner and founder of Pantera, talked about X two days ago.