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- Toncoin has topped the 20 biggest cryptocurrencies on the weekly charts per price gains.
- Despite the hype around xAI and the Telegram deal, the agreement has not yet been finalized.
Toncoin (TON), built on the Telegram Open Network, is currently leading the top 20 cryptocurrencies with its price performance on the weekly charts. The price of TON has increased by 3.14% within the past week.
This surge follows a rumored deal between Elon Musk’s xAI and the Telegram messaging platform. Reports also emerged about BlackRock joining Telegram‘s $1.5 billion bond offering.
Toncoin Overcoming Consolidation
Data from MarketCap revealed the price of TON crossed the $3 mark, reaching $3.4 in today’s morning trading session. TON leads in weekly gains among the top 20 biggest cryptocurrencies by market cap.
TON has mounted a sharp recovery and is now trading at $3.18. This rally is notable as TON dipped as low as $2 in January.
TON saw its price increase by 1.39% in the past seven days. In contrast, the price of Bitcoin (BTC) plummeted sharply by 2.8%. Likewise, the price of Ethereum (ETH), XRP, Solana (SOL), and Dogecoin (DOGE) dropped 1.04%, 2%, 10.09%, and 12%, respectively.
Chainlink (LINK), Shiba Inu (SHIB), and Avalanche (AVAX) are also among the cryptocurrencies that are performing poorly on the weekly charts. The price of these digital assets dropped 10.2%, 8.5%, and 9.7%, respectively.
For now, TON continues to show resilience, driven by two distinct events in the ecosystem. Firstly, we reported last week that Telegram has integrated the Grok AI chatbot into its platform. This integration will enhance Telegram with features like smart text editing, threaded chats, and document digests.
The deal reportedly involves $300 million in cash and equity from xAI, an Artificial Intelligence firm founded by Elon Musk. According to the reports, Telegram would also receive 50% of revenue from xAI subscriptions sold via the app. This news led to TON surpassing the $4 mark, with analysts predicting prices as high as $6.
It is important to note that the deal between xAI and Telegram is still pending. Telegram CEO Pavel Durov confirmed the agreement was “in principle” with formalities pending. As detailed in our last news piece, Elon Musk later clarified on X that “no deal has been signed.”
This uncertainty led to TON’s price volatility in the days following.
Other Developments for Telegram
The potential xAI partnership coincides with other developments for Telegram. The Wall Street Journal reported that BlackRock has participated in Telegram’s $1.5 billion bond sale. Other major investors like Abu Dhabi’s Mubadala and Citadel were rumored to have participated in the bond sale.
The five-year bonds carry a 9% yield and allow investors to convert their debt into shares at a 20% discount. However, this is dependent on whether Telegram goes public in the future.
This bond sale reflects strong institutional confidence in Telegram’s growth. The messaging app has surpassed 15 million paying users and is projected to make over $2 billion in profit by 2025.
The bond offering and the potential xAI partnership signal Telegram’s focus on expanding its financial and technological capabilities. Still, Telegram faces challenges, including an ongoing investigation of Durov in France for alleged criminal activity on the platform.
Despite the challenges, analysts expect TON to target $5 by mid-2025.
