Telegram's "The Open Network" (TON) blockchain has been quietly outperforming Ethereum in terms of daily active addresses throughout this month, a feat attributed to Telegram's massive user base of 900 million. This growth has led to TON surpassing Ethereum on 10 out of the 11 days so far, with a record high of 568,300 daily active addresses on June 3.

A Bet on Telegram's Distribution

Delphi Digital, a prominent firm, highlighted TON's impressive growth, noting that it is largely driven by Telegram's vast distribution network. However, they also raised questions about whether this growth can be sustained long-term to permanently surpass Ethereum.

TON and Ethereum Head to Head

Data from Artemis shows that TON and Ethereum have been closely competing since May 17, with TON gaining an edge at the beginning of June. Despite Ethereum's efforts to scale through layer 2 solutions, TON has managed to surpass it.

Factors Contributing to TON's Growth

Several factors have contributed to TON's recent surge in network activity. The integration of Tether (USDT) stablecoin on TON and the 35 million users who have joined Notcoin since its launch five months ago have both played a significant role. Notcoin is a "tap-to-earn" token that users can earn by completing various social challenges.

Telegram's Digital Payment Feature

Last week, Telegram launched a new digital payment feature called "Telegram Stars," allowing users to make in-app purchases. This feature is compatible with both iOS and Android devices and comes as Telegram's mini apps continue to gain traction.

Mini Apps and Gaming Ecosystem

One of the mini apps that have been gaining traction recently is Hamster Kombat, a simulator game where players can increase their exchange income by buying "upgrade cards" and completing quests. Earlier this month, Hamster Kombat announced gaining millions of subscribers and becoming the No.1 channel on Telegram in terms of users. Additionally, Pixelverse, a Web3 Telegram-based gaming ecosystem, raised $5.5 million in a recent capital raise.

Conclusion

While TON's growth is impressive, it remains to be seen whether it can be sustained long-term to permanently surpass Ethereum. The success of TON relies heavily on Telegram's distribution network, and it will be interesting to see how the ecosystem evolves in the coming months.