DEFI

TON lockup value plunges by 53%, Telegram DeFi protocol assets hemorrhage, TON staking decreases

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TON lockup value plunges by 53%, Telegram DeFi protocol assets hemorrhage, TON staking decreases

The founder of Telegram was arrested in Paris and indicted by French regulators for serious charges, including assisting in illegal transactions and organized crime, which could result in a maximum sentence of ten years. The Ton blockchain, which serves as a significant digital financial channel for Telegram, has also been deeply affected. According to DeFiLlma data, the Total Value Locked (TVL) on the Ton chain reached a peak of $700 million in July, but has since dropped to $350 million after the Telegram case.

From the data, it can be observed that the decrease in Ton TVL occurred a month ago, and has further declined by 29% after the Telegram case, plummeting by 53% since August 30.

TVL denominated in USD sharply declined after the Telegram case in early August
TVL denominated in USD sharply declined after the Telegram case in early August

Why was Pavel Durov, the founder of Telegram and the visionary leader of TON, arrested? It's not about freedom, but rather about crime and cryptocurrency.

TON DeFi Protocol Bleeds Out, Telegram Case Causes Overall Contraction

According to DeFiLlma, the average increase and decrease in TVL of TON's 20 DeFi protocols post Telegram case was -18.10% over 7 days, indicating a downward trend in TVL for most projects during this period. The 30-day average TVL change was -16.73%, showing a continued decline in TVL for most projects, albeit slightly less than the 7-day average.

The following chart displays the Total Value Locked (TVL) and performance indicators of various DeFi projects in different categories such as liquidity staking, decentralized exchanges, lending, derivatives, etc. Here is a brief analysis:

Top 3 Projects by TVL:

  • Tonstakers (Liquidity Staking) leads with a TVL of $172.34M but shows negative performance across all periods, with -3.20% change in 1 day, -19.56% in 7 days, and -23.45% in 1 month.
  • STON.fi (Decentralized Exchange) ranks second with $166.55M, showing a significant increase of +14.33% in the past day but steep declines of -27.52% in 7 days and -54.89% in 1 month.
  • DeDust (Decentralized Exchange) ranks third with $132.6M, displaying a strong +19.08% growth in 1 day but substantial losses of -38.22% in 7 days and -60.08% in 1 month.

Standout Performers:

  • TON Hedge (Options) has the highest 1-day positive change at +30.12% but negative performance over 7 days (-8.19%).
  • Cygnus Finance (RWA) remains relatively stable with a slight increase of +0.03% in 1 day and a significant increase of +16.43% in 1 month.

Significant Declines:

  • Many projects continue to decline over 7 days and 1 month, indicating a general downtrend in the DeFi market.
  • Tegro Finance (Decentralized Exchange) and Tonnel Network (Privacy) are projects that have significantly dropped by -55.84% and -43.39%, respectively, over 1 month.

Stable or Slightly Growing Projects:

  • Projects like Storm Trade (Derivatives) and TradOor (Derivatives) show minor positive changes in the short term, indicating some resilience.

Chart Notes: Total Value Locked (TVL) of various blockchain protocols and their percentage changes in 1 day, 7 days, and 1 month. The blue bars represent TVL in millions, while the line graph shows percentage changes over different time intervals:

  • TVL: Top protocols by TVL include Tonstakers, STON.fi, and DeDust.
  • 1-day change (red line): Protocols like TON Hedge and STON.fi show significant positive changes, while others exhibit slight or negative trends.
  • 7-day change (green line): Most protocols show a negative trend in the past week, indicating recent challenges.
  • 1-month change (purple line): Different protocols perform differently, with some like Cygnus Finance and DAOLama showing significant positive trends over a longer period.

TON PoS Staking Sees Massive Exodus

According to TON Explorer, PoS TON staking quantity was 296 million TON on 8/27, drastically dropping to 152 million TON on 8/28, with staking APY quickly adjusted from the original 3-4% to 6.9%.

TON Network Halts Block Production, Emergency Inspection of Node Equipment

In recent days, the Ton blockchain experienced severe block production halts several times. According to the TON team, the failures were caused by abnormal spikes in transaction activity, disrupting network consensus.

The team stated that the network overload was due to the DOGS token, leading to the introduction of node penalty mechanisms to reduce non-functioning nodes. Additionally, they have begun investigating node equipment specifications in various locations to revitalize the network.

After the arrest of Telegram founder: TON resumes block production seven hours after halt, momentarily losing consensus