Sunday, July 14, 2024

All about Toncoin’s new Layer-2 network and its impact on TON

Must read

  • TON Blockchain Introduces TON Applications Chains A Layer-2 Network Using Polygon Technology.
  • TAC aims to enable TON with Ethereum Virtual Machine compatibility.

Toncoin [TON]blockchain continues with development activity to leverage various technologies for competitive advantage.

In a a new project called TON Applications Chains (TAC), a layer-2 network for the TON ecosystem is being developed. It will be powered by Polygon.

Blockchain researcher Collin Brown shared the news on X (formerly Twitter),

“Exciting news for the TON Blockchain ecosystem! Introducing TON Applications Chain (TAC), a new layer-2 network leveraging Polygon’s technology. TAC, announced at EthCC, aims to enhance TON with Ethereum Virtual Machine compatibility, enabling seamless app migration and fostering DeFi and gaming innovation”.

According to the official statement, TAC will be uniquely compatible with EVM (Ethereum virtual machine), which operates under Ethereum blockchain OS.

Compatibility with EVM is vital because the TAC layer-2 network will allow other developers under the same ecosystem to port over the upgrade.

What EVM brings to the TON ecosystem

Notably, TAC will allow EVM applications on the TON ecosystem and enable ETH developers to develop other advanced programs for Telegram users.

It promises interoperability and scalability, which will be critical in attracting various developers with the advanced EVM support technology.

This will play a critical role in decentralizing applications on the telegram platform. Equally, TAC will help develop DeFi apps for the Toncoin ecosystem.

Why it matters

The project is significant because it will use Chain Development Kit (CDK), which allows various developers to build their layer-2 blockchain. CDK will be developed on Polygon’s AggyLayer, which will help solve blockchain fragmentation.

Polygon Aggregated shared on their official X page, that,

“TON Applications Chain (TAC) is building a zk-powered L2 w/ Polygon CDK that will connect to the AggLayer, enabling seamless interop & unified liquidity for the @ton_blockchainecosystem”.

Will TAC have any impact on price charts?

At press time, TON was trading at $7.36 after a 7.08% decline in the last seven days. However, TON has gained on daily charts after rising 0.39%.

Source: Tradingview

According to AMBCypto’s analysis, TON was experiencing a consolidation phase and is set for an upward reversal. As of this writing, Toncoin’s EMA at $7.36 was the same level as that of the price, suggesting a neutral market with prices moving sideways.

This price action indicates neither sellers nor buyers have any positive advantage. Equally, if the prices continue to rise after meeting the EMA, the trend will turn bullish.

Source: Tradingview

The relative strength Index at 49, suggests the market is at equilibrium. The neutral market condition implies that the buying and selling pressures are equal, which means the market is in equilibrium.


 Read Toncoin (TON) Price prediction 2024-25


This further proves the market is in the consolidation phase.

If the altcoin prices continue to close towards EMA and cross over, Toncoin prices will rise to the next resistance level at $7.64. However, if the selling price is maintained, the prices will decline to $7.05.

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