Analysis of Telegram’s NFT Integration on The Open Network
Telegram’s recent announcement to allow users to convert digital gifts into NFTs on The Open Network (TON) marks a significant milestone in the company’s foray into the Web3 space. This move is part of Telegram’s first update of 2025, enabling users to upgrade over 20 existing gifts, such as Jelly Bunny and Santa Hat, into collectibles for a small amount of Telegram Stars, which covers the cost of blockchain fees.
Background and Context
Telegram introduced gifts in October, which are animated artworks and custom messages that can be given and displayed on a user’s profile. The new feature allows users to transfer their Telegram NFTs to other users or auction them on secondary TON marketplaces like Getgems. This development is the latest in a series of moves that has brought Telegram closer to the Web3 ecosystem.
In 2023, a self-custody wallet called TON Space launched on Telegram, allowing users to onboard and access The Open Network. In early 2024, Telegram announced it would share ad revenue on its platform with channel owners, payable in TON. The company also launched Stars, an in-app currency purchasable with fiat money, which allows developers to sell digital goods and services via Telegram mini apps and games. These Stars are convertible to TON.
Market Impact and Trends
The addition of NFT functionality on Telegram has the potential to significantly impact the market. With over 500 million monthly active users, Telegram’s integration of NFTs could lead to increased adoption and mainstream recognition of digital collectibles. According to CoinGecko, TON has grown to become the 15th largest cryptocurrency by market capitalization, with a market cap of over $2.5 billion. TON’s price has retraced 30% from its all-time high of $8.25, but is still up 165% on the year, trading at $5.79 at the time of writing.
The success of Telegram’s tap-to-earn gaming ecosystem and other simple mini apps has drawn millions of players, resulting in massive crypto token airdrops. The growth of Telegram’s ecosystem is expected to continue, with pseudonymous TON core developer Dr. Awesome Doge expressing confidence that Telegram mini apps will grow more complex as independent companies seek to engage its massive user base.
Technical and Security Considerations
The integration of NFTs on Telegram is built on The Open Network, a blockchain network that was originally developed by Telegram under the name Telegram Open Network. Although regulatory scrutiny forced the company to abandon the project in 2020, community developers took over, leading to the current network. The security of the network is ensured by a proof-of-stake consensus algorithm, which is more energy-efficient than traditional proof-of-work algorithms.
The use of Telegram Stars as a bridge between fiat currency and TON provides a convenient on-ramp for users to enter the Web3 ecosystem. However, the conversion process and associated fees may pose a barrier to entry for some users. As the ecosystem grows, it will be essential to monitor the security and scalability of the network to ensure a seamless user experience.
Predictions and Future Outlook
Based on the analysis, several predictions can be made about the future of Telegram’s NFT integration and the broader Web3 ecosystem:
- Increased adoption of NFTs: With Telegram’s large user base and user-friendly interface, the adoption of NFTs is likely to increase, leading to greater mainstream recognition of digital collectibles.
- Growth of the TON ecosystem: The success of Telegram’s gaming ecosystem and mini apps is expected to continue, with more complex and engaging experiences being developed by independent companies.
- Expansion of Web3 use cases: The integration of NFTs on Telegram is likely to pave the way for more innovative use cases, such as decentralized finance (DeFi) and social media applications.
- Competition and collaboration: As the Web3 ecosystem grows, competition and collaboration between different platforms and networks are likely to increase, driving innovation and adoption.
In conclusion, Telegram’s integration of NFTs on The Open Network marks a significant milestone in the company’s Web3 journey. With its large user base, user-friendly interface, and growing ecosystem, Telegram is well-positioned to drive adoption and innovation in the Web3 space. As the ecosystem continues to evolve, it will be essential to monitor developments and provide updates on the latest trends and predictions.
