Shifting Control to Telegram

TON's operational control is shifting from the TON Foundation to Telegram itself. This move aims to use Telegram's vast user base to drive blockchain adoption, promising better tech and near-zero fees, which has sparked market enthusiasm.

Telegram Becomes Major Validator

Telegram founder Pavel Durov announced a major change, positioning the messaging platform as the main driver and largest validator of The Open Network (TON). This transition, effective May 4, 2026, sent Toncoin's price soaring over 30% to about $1.80, a four-month high. It marks a significant governance shift, similar to Telegram's earlier attempt with the Gram token, which faced U.S. Securities and Exchange Commission (SEC) issues and was abandoned in 2020. Under the new structure, Telegram has staked around 2.2 million TON to boost network security and influence protocol development.

TON network fees have been drastically cut, falling sixfold to near zero, with average transaction costs now around $0.0005. This is aimed at supporting high-frequency, low-value transactions for apps like on-chain tips, bot payments, and mini-apps within Telegram's ecosystem. The network's infrastructure also recently saw upgrades, like Catchain 2.0, which reduced block times to about 400 milliseconds, significantly increasing transaction speed.

Fundamentals Lag Behind Hype

Despite the price surge and the promise of mass adoption, TON's core blockchain fundamentals show a different picture. While Telegram has nearly a billion monthly active users, TON's decentralized finance (DeFi) sector reported about $158.9 million in Total Value Locked (TVL) as of late 2025. Some reports suggest it reached $1.2 billion by April 2026, but this remains far below major Layer-1 networks like Ethereum ($296 billion TVL) or Tron ($87 billion TVL). Daily transaction fees on TON average around $3,600-$6,300, a small sum relative to its market capitalization. Daily active wallet counts also lag, around 155,000 in late 2025, a fraction of Telegram's potential user reach.

Speculative tokens linked to Telegram's ecosystem have rallied. Notcoin gained nearly 26%, and the DOGS memecoin reportedly surged over 100%. DOGS, a TON-based memecoin, saw its price increase by over 108% in the last 24 hours to $0.000070 USD, showing high speculative activity. However, this ecosystem excitement has not yet led to deep on-chain use for the core TON network. Toncoin itself, trading around $1.80, is still about 78% below its all-time high of over $8.25.

Risks: Centralization and Disconnected Value

Telegram's direct control over TON raises significant centralization concerns. While Telegram's user base offers huge distribution potential, concentrating network leadership and validation within one company goes against the decentralized spirit the TON Foundation promoted. This move brings back concerns from TON's early days as Telegram's Gram project, which was abandoned in 2020 due to regulatory issues. The potential for regulatory friction, similar to past issues with the SEC, remains an ongoing risk.

Furthermore, the drastic reduction in transaction fees, while good for microtransactions, has raised skepticism. Networks can face congestion and rising costs under heavy usage. The current price surge, driven by ecosystem hype and Telegram's direct involvement, risks a valuation disconnected from the network's actual use. Investors are betting on Telegram's ability to onboard its users, a significant challenge given the network's modest DeFi TVL and active user numbers compared to its competitors. Past forecasts from late 2025 expected higher price targets for Toncoin, showing current levels are still far from prior optimistic projections.

Path Forward for TON

Telegram's direct leadership promises faster development, with new developer tools and upgrades expected soon. The integration aims to connect Telegram's 950 million users directly to the blockchain, potentially creating demand. The success of this initiative depends on Telegram's ability to turn user engagement into sustained on-chain activity and real utility for TON. While low fees and better infrastructure provide a foundation, TON must overcome challenges in DeFi growth and user adoption to justify its current momentum and embed the blockchain within the messaging platform.