TON has seen more daily active addresses than Ethereum in 10 of the last 11 days — however, that figure doesn’t include Ethereum layer 2s.

TON Blockchain Outpacing Ethereum in Daily Active Addresses

Key Developments:
- TON's Activity Surge: The Open Network (TON), linked to Telegram, has recorded more daily active addresses (DAAs) than Ethereum for nearly every day this month.
- DAA Statistics: On June 3, TON reached a record 568,300 DAAs, a level Ethereum hasn't seen since September 13, 2023.

Analysis by Delphi Digital:
- The Quiet Flippening: Delphi Digital highlights that TON's growth is largely due to Telegram's extensive user base of 900 million. They refer to this trend as "The Flippening CT ignores."
- Sustainability Question: Delphi Digital notes that TON's rise is heavily reliant on Telegram's distribution power. The long-term sustainability of this growth remains a key question.

Data Insights:
- Comparison with Ethereum: While TON has seen a significant increase in DAAs, much of Ethereum’s user activity is now on layer 2 (L2) scaling solutions like Arbitrum, Base, and Optimism. On June 11, these three L2s collectively saw 1.3 million DAAs, which surpasses TON’s figures.
- Ethereum's Strategy: Ethereum co-founder Vitalik Buterin supports using L2s to scale the main blockchain, which distributes activity across these layers.

TON’s Recent Boosts:
- Stablecoin Integration: Telegram recently integrated the Tether (USDT) stablecoin on the TON blockchain.
- Notcoin and User Engagement:Notcoin, a "tap-to-earn" token launched five months ago, has garnered 35 million users by offering rewards for completing social challenges.
- Telegram Stars: On June 6, Telegram launched "Telegram Stars," an in-app currency for digital purchases.
- Trading Bots: Telegram's trading bots have also become popular, contributing to increased network activity on TON.

Context and Future Implications

Ethereum's L2 Scaling:
- Layer 2 Solutions: Ethereum's shift to L2 solutions aims to enhance scalability and reduce congestion on the main chain. This strategy means that DAAs on the main Ethereum chain might not fully capture the ecosystem’s total user activity.
- Broader Ecosystem: The combined DAA figures of Ethereum’s L2 solutions suggest a robust ecosystem, even if the main chain’s figures appear lower in comparison to TON.

TON’s Growth Potential:
- Telegram's Influence: TON’s integration with Telegram provides it with a unique distribution advantage, leveraging Telegram’s massive user base for rapid growth.
- Sustained Engagement: The introduction of tokens like Notcoin and in-app currencies like Telegram Stars indicates efforts to maintain and grow user engagement.

Competitive Landscape:
- Long-Term Competition: While TON's current DAA figures are impressive, the long-term competition with Ethereum will depend on various factors, including sustained user engagement, scalability improvements, and overall ecosystem development.
- Future Projections: Analysts will continue to monitor both networks to see if TON can maintain its growth trajectory and if Ethereum’s L2 solutions will further bolster its user activity metrics.

In summary, TON's recent performance in DAAs highlights its rapid growth fueled by Telegram’s user base and recent integrations. However, a comprehensive comparison with Ethereum requires considering activity on Ethereum’s L2 solutions, which continue to drive significant user engagement. The evolving strategies and developments in both ecosystems will shape their competitive dynamics moving forward.