Toncoin Introduces Promising New Layer-2 Network

Toncoin blockchain (TON) continues to advance its development efforts by leveraging various technologies to gain a competitive edge. In a new initiative called TON Applications Chains (TAC), a Layer 2 network for the TON ecosystem is being developed. This network will be powered by Polygon.

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

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

🚀 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… pic.twitter.com/anGuPbAuNi

— Collin Brown (@CollinBrownXRP) July 10, 2024

According to the official statement, TAC will have unique compatibility with the Ethereum Virtual Machine (EVM), operating under Ethereum’s blockchain framework. This EVM compatibility is crucial as it will allow developers within the ecosystem to smoothly transition to the upgraded network.

What EVM Brings to the TON Ecosystem

Notably, TAC will enable EVM applications within the TON ecosystem and allow ETH developers to create advanced programs for Telegram users. This promises enhanced interoperability and scalability, which will be crucial in attracting various developers with advanced EVM-supported technology.

This development will play a significant role in decentralizing applications on the Telegram platform. Similarly, TAC will aid in the creation of DeFi applications for the Toncoin ecosystem.

Why It Matters

This project is significant as it will utilize the Chain Development Kit (CDK), allowing numerous developers to build their own Layer 2 blockchains. The CDK will be developed on Polygon’s AggyLayer, addressing blockchain fragmentation issues.

Polygon Aggregated shared on their official X page,

“TON Applications Chain (TAC) is building an L2 powered by zk with Polygon CDK that will connect to AggLayer, enabling seamless interoperability and unified liquidity for the @ton_blockchain ecosystem.”

Will TAC Impact the Price Chart?

As of the time of reporting, TON is trading at $7.36, having dropped 7.08% over the past seven days. However, TON has seen a 0.39% increase on the daily chart.

According to analysis, TON is undergoing a consolidation phase and preparing for a potential bullish reversal. At the time of writing, Toncoin’s EMA is at $7.36, aligning with its current price, indicating a neutral market with sideways movement.

This price action suggests neither sellers nor buyers have a clear advantage. Similarly, if the price continues to rise past the EMA, the trend will shift to bullish. The Relative Strength Index (RSI) is at 49, indicating a balanced market. This neutral market condition implies equal buying and selling pressure, signifying a state of equilibrium.

This further supports the idea that the market is in a consolidation phase. If the altcoin’s price continues to close in on the EMA and surpass it, Toncoin’s price could rise to the next resistance level of $7.64. However, if selling pressure persists, the price could drop to $7.05.