Toncoin’s native token, TON, hit a new all-time high of $8.24 on June 15 and is currently trading up 98% in 90 days. While TON maintains its position as the sixth-largest cryptocurrency, excluding stablecoins, it has been narrowing the gap with the fifth-place competitor, XRP.

The key question is: What is fueling TON’s rally, and, critically, can this outperformance be sustained in the long term?

TON’s price had been attempting to solidify the $6.9 support over the past few days. Therefore, it would be inaccurate to say that TON’s upside is secure unless this support successfully holds.

If bulls succeed in defending this level, they will be bolstered to push the price, first above the $8.0 psychological level, and later to the all-time high at $8.24. Higher than that, the price will enter into price discovery as more demand for the token emerges from the community. 

Toncoin memecoins surge

In addition to the substantial gains on TON, a few Toncoin memecoins saw a notable surge in demand, despite the ongoing drawdown in the broader crypto market. Resistance Dog (REDO) recorded a 39% increase over the last 24 hours, while Resistant Cat (RECA) experienced a significant rally of 49% during the same period. Ton Inu (TINU) has increased by 9.5%, over the past 24 hours.

In comparison, the wider cryptocurrency market cap has fallen by 2.3% to $2.36 trillion. Bitcoin (BTC) and Ether (ETH) have both ticked 0.8% and 2.80% lower, respectively.

There is evidence to show that the recent surge in TON’s price has been accompanied by increased demand for the token, following the analysis of key Toncoin network metrics.

The total value locked (TVL) on the Open Network can impact SOL’s price. A higher TVL suggests increased user activity and demand for Solana-based DApps, potentially driving demand and influencing the price positively.

Data from DefiLlama reveals that the TVL on TON has more than doubled over the last three weeks to hit a record high of $609.78 million on June 17.

Many of the top 10 protocols on TON have made significant growth in TVL over the past seven days. The TVL on DeDust, a TON-based decentralized exchange liquidity pool, surged by 53% in the past week, reaching nearly $300 million. Smaller protocols such as bemo, Stakee and EVAA have also seen double-digit growth during the same period, reaching $79 million, $22 million and $20 million TVL, respectively.

TON blockchain has been gaining prominence as Telegram's preferred solution for Web3 integration. Telegram, one of the world's most-used messaging systems, reportedly boasts over 900 million users.

As more users engage with the TON blockchain, there will be increased demand for the token, which is expected to push its price higher.