Is Toncoin (TON) Dead or Set for an AI-Powered Comeback in 2026?

With more than a billion users on Telegram, many expected its native blockchain, The Open Network (TON), and its cryptocurrency Toncoin (TON) to dominate the crypto market. Instead, TON has struggled through the ongoing crypto winter. Over the past year, Toncoin’s price has dropped roughly 67%, and total value locked (TVL) across the TON ecosystem has fallen by nearly $700 million from its 2024 peak, according to DefiLlama. These declines have sparked a growing debate: is TON fading away, or quietly positioning itself for a major comeback?

TON’s downturn followed a euphoric phase in mid-2024, when Telegram-based meme coins like Notcoin and Hamster Kombat pushed Toncoin above $8. Since then, market sentiment cooled, but development inside the Telegram ecosystem has continued. In July 2025, Telegram Wallet became available to U.S. users, expanding access to crypto payments for millions. Later that year, Coinbase listed TON, a significant milestone that improved liquidity and legitimacy, especially given Telegram’s large U.S. user base.

As 2026 begins, TON’s narrative is increasingly tied to artificial intelligence. A growing sign of maturity is the emergence of Digital Asset Treasuries (DATs) built around TON. Among them are TON Strategy and AlphaTON, the latter rebranded in 2025 and now focused on merging TON with decentralized AI. Central to this vision is Cocoon AI, a decentralized AI protocol announced by Telegram CEO Pavel Durov.

AlphaTON is helping scale Cocoon AI by investing in GPU infrastructure and enabling developers to build AI-powered applications within Telegram. Crucially, developers must pay for these services in TON, creating real token demand. This model mirrors other decentralized AI economies, where native tokens power both usage and incentives.

Supporters like SkyBridge Capital founder Anthony Scaramucci believe this utility-driven approach could revive TON’s value. With over 200 million Telegram Wallet users and AI projected to become a trillion-dollar industry, TON’s integration into a “superapp” ecosystem offers long-term potential. While short-term price action remains weak, TON’s blend of blockchain, payments, and AI suggests that reports of its demise may be premature.