TON explodes 36% on Telegram takeover

May 05, 2026

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Telegram takes charge, TON explodes 36%

Key points:

  • Toncoin jumped over 36% after Telegram moved to replace the TON Foundation and become the network’s largest validator.

  • Near-zero transaction fees and ecosystem momentum fueled a broad rally across TON-linked tokens.

News - Toncoin surged past $1.80, hitting a four-month high after Telegram founder Pavel Durov confirmed that Telegram will replace the TON Foundation as the primary force behind Toncoin. The messaging platform is also set to become the largest validator on The Open Network, signaling a deeper operational role in the network’s infrastructure and direction.

At the same time, transaction fees have dropped nearly sixfold to close to zero, with a broader push toward a near feeless model. New developer tools, performance upgrades, and ecosystem updates are expected within two to three weeks.

Utility meets narrative - Lower fees significantly improve TON’s viability for micro-transactions such as tipping, gaming, bot payments, and mini-app activity within Telegram’s ecosystem. This aligns with its large user base, where even minimal costs can limit adoption.

Still, on-chain fundamentals lag behind. Metrics like total value locked, daily activity, and revenue remain well below 2024 highs, suggesting the rally is driven more by expectations than current usage.

Momentum or cool-off ahead? - Momentum spread across the ecosystem as well. Notcoin posted double-digit gains, while DOGS and UTYA surged over 100%. Analysts warned that TON has often rallied on deeper Telegram involvement, meaning profit-taking could follow once the upgrades go live.

Standard Chartered bets big on crypto infrastructure

Key points:

  • Standard Chartered’s SC Ventures took a stake in GSR at a valuation above $1 billion, marking its first external strategic shareholder.

  • The deal highlights growing institutional focus on liquidity, tokenization, and scalable crypto infrastructure.

News - Standard Chartered’s venture arm, SC Ventures, has invested in GSR, valuing the crypto market maker at over $1 billion. The move marks the first time GSR has brought in an external strategic shareholder since its founding in 2013 by former Goldman Sachs traders.

The partnership is positioned as more than just capital infusion. Both firms aim to build regulated, scalable infrastructure that connects traditional finance with digital assets, with a strong focus on tokenization and institutional access.

Infrastructure takes center stage - Executives from both sides framed the deal as part of a broader shift in crypto’s evolution. GSR CEO Xin Song highlighted the growing need to combine capital markets expertise with banking infrastructure, while SC Ventures CEO Alex Manson emphasized that future growth will depend on stronger liquidity systems and resilient market frameworks.

GSR already provides liquidity across more than 200 digital assets and has backed over 300 crypto firms. It has also expanded into token advisory, treasury management, and an ETF offering, positioning itself as a full-stack capital markets player.

Institutional momentum builds - For Standard Chartered, the investment adds to an expanding digital asset strategy that includes custody services, institutional trading, and ties to platforms like Zodia. The bank is also reportedly exploring a dedicated digital asset services fund, signaling deeper long-term commitment.

Meanwhile, GSR continues to scale through acquisitions and partnerships, including its recent involvement in tokenization platform Libeara. Together, the deal reflects rising confidence among major financial institutions in crypto’s infrastructure layer as the next phase of growth.

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a16z raises $2.2B, signals crypto reset

Key points:

  • Andreessen Horowitz raised $2.2 billion for its fifth crypto fund, bringing its total crypto investment vehicles to nearly $9.8 billion.

  • The fund targets real-world use cases like stablecoins, payments, and onchain finance amid improving fundamentals.

News - Andreessen Horowitz has launched “Crypto Fund 5,” a $2.2 billion vehicle aimed at backing crypto startups across all stages over the next decade. While smaller than its $4.5 billion predecessor, the fund reflects continued institutional conviction in digital assets despite subdued market sentiment and rising competition from AI-focused investments.

The firm framed the current market as a quieter phase where long-term value is being built. Rather than chasing speculative cycles, the focus is shifting toward turning infrastructure into products that users interact with daily.

Fundamentals over hype - a16z pointed to steady growth in stablecoin usage as one of the clearest signals of real adoption. Unlike trading volumes, which fluctuate with sentiment, stablecoins continue to gain traction for payments, savings, and cross-border transfers.

Beyond stablecoins, areas like perpetual futures, prediction markets, onchain lending, and tokenized assets are also expanding. The firm argues these trends reflect a broader transition toward a financial system that is faster, cheaper, and more accessible.

Capital flows follow utility - The fund arrives as venture capital recalibrates around AI, forcing crypto investors to sharpen their focus. a16z remains fully committed to crypto, positioning the sector as a foundational layer for emerging technologies, including AI systems that require transparent and verifiable infrastructure.

Alongside the fundraise, the firm promoted CTO Eddy Lazzarin to general partner, signaling internal alignment as it scales its next investment cycle. With rivals like Haun Ventures and Dragonfly also raising fresh capital, competition for high-quality crypto startups is intensifying, even as the broader market remains selective.

Aave, Ripple signal crypto threat shift

Key points:

  • Aave moved to unblock $71 million in frozen ETH, arguing the funds belong to users, not North Korea-linked creditors.

  • Ripple is sharing threat intelligence as North Korean attacks shift toward social engineering and industry-wide risks grow.

News - Aave has filed an emergency motion in a New York federal court to lift a restraining notice blocking access to roughly $71 million in ETH frozen on Arbitrum following the Kelp DAO exploit. The funds, around 30,766 ETH, were immobilized after attackers used manipulated rsETH collateral to drain liquidity from the protocol.

At the same time, Ripple is sharing internal threat intelligence through Crypto ISAC, highlighting how North Korean-linked actors are evolving their attack strategies.

The dispute centers on whether briefly stolen assets can be treated as the property of alleged attackers. Aave argues they cannot, stating the assets belong to affected users and warning that continued restrictions could trigger liquidations, liquidity stress, and broader instability across DeFi markets.

Legal clash meets market risk - Plaintiffs, holding long-standing judgments against North Korea, claim the funds can be seized if linked to the Lazarus Group. Aave disputes both the ownership argument and the attribution, calling the claims speculative.

The freeze has already disrupted recovery efforts led by DeFi participants, including initiatives aimed at restoring value to impacted users. Aave has also warned that upholding the restraining notice could deter future coordinated responses to exploits.

Security playbook is changing - Recent attacks like Drift and Kelp show how threat models are expanding beyond smart contract bugs, with long-term social engineering and internal compromise becoming major risks. With hundreds of millions lost in a handful of incidents this year, firms are increasingly turning to coordinated defense strategies.

The overlap between legal claims, attribution challenges, and evolving attack methods is now shaping how crypto firms respond to both threats and recovery.

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Interesting facts

  • NFTs still have a credibility gap this cycle: CoinGecko’s latest survey found that only 19% of crypto participants expect NFTs to make a comeback, while 54.1% remain bearish, signaling that market trust in the sector is still weak.

  • North Korea’s crypto hacks are fewer, but far more concentrated: In its 2026 update, TRM Labs reported that North Korean-linked groups accounted for 76% of all stolen crypto value through April using just two major attacks, showing how a handful of exploits can dominate yearly losses.

  • Crypto’s token graveyard is growing faster than ever: A recent CoinGecko report shows over 53.2% of all tokens listed on GeckoTerminal have failed, with 11.6 million projects collapsing in 2025 alone, highlighting the brutal churn behind the memecoin boom.

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Top 3 coins of the day

Pudy Penguins (PENGU)

Key points:

  • PENGU climbed to around $0.0116 after a sharp push toward the $0.012 range, extending its ongoing uptrend.

  • A bullish MA ribbon structure and rising volume supported the move, while RSI signaled overbought conditions amid strong ecosystem-driven demand.

What you should know:

PENGU continued its upward trajectory, accelerating from the $0.010 region to just under $0.012 with strong bullish candles. Price held firmly above a fully aligned MA ribbon near $0.010–0.0102, confirming sustained trend strength. 

The rally coincided with multiple catalysts, including Paxos enabling brokerage access to the token, an Amazon-linked “Pudgy World” integration expanding real-world usage, and renewed NFT momentum as the collection’s floor price crossed 5 ETH. Trading activity also picked up, with volume rising sharply during the breakout phase.

RSI moved into the mid-70s, indicating overbought conditions as momentum intensified. The $0.012 zone acts as immediate resistance, while the $0.010 area remains a key support to watch.

MemeCore (M)

Key points:

  • M rebounded to around $3.3 after spiking toward the $3.7–3.8 range, with volatility remaining elevated following the recent drop.

  • Bollinger Band expansion and a positive CMF shift supported the move, while a meme-driven catalyst and liquidity dynamics fueled the rebound.

What you should know:

M reversed sharply after falling to the $2.6–2.7 zone, rallying toward $3.8 before easing back near $3.3. Price moved rapidly from the lower Bollinger Band to near the upper band, reflecting strong volatility expansion, and the latest candles continued to test that upper range despite mild rejection. This rebound aligned with the launch of MemeCore’s “No Cap(tion)” contest, which boosted short-term engagement, while thin liquidity conditions likely amplified the move through forced short covering.

CMF turned positive around 0.07, indicating fresh inflows during the recovery phase. Volume surged during the breakout but has since moderated. The $3.7–3.8 zone acts as resistance, while the $3.1–3.2 area remains a key support to monitor.

Toncoin (TON)

Key points:

  • TON surged toward $1.90 before pulling back sharply to around $1.77, showing early signs of rejection after a vertical breakout.

  • The rally was backed by an expanding MA ribbon and strong AO momentum, driven by Telegram-led developments and a surge in trading activity.

What you should know:

TON traded within a tight range near $1.30–1.35 before breaking out aggressively, climbing to nearly $1.90 in a short span. The move pushed price well above the MA ribbon, which began fanning upward as momentum accelerated. This rally followed Telegram’s decision to take a more direct role in the network, including staking over 2 million TON as a validator and cutting transaction fees to near zero, strengthening confidence in its long-term utility.

Volume surged sharply during the breakout, confirming strong participation, while the Awesome Oscillator printed expanding green bars, reflecting elevated momentum. However, the latest red candle signaled selling pressure near the highs, suggesting early profit-taking after the rapid move. The $1.90 zone acts as immediate resistance, while the $1.45–1.50 range now serves as key support.

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