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Toncoin (TON) flipped Cardanos ADA (ADA) token to become the ninth-largest cryptocurrency by market capitalization on April 9. Can Toncoin continue its parabolic rise?

Following a 13% daily price increase, TON rose to $6.65 as of 1:45 pm UTC to reach a $23 billion market capitalization, overtaking the ADAs $22 billion market cap, according to CoinMarketCap data.

The rally comes a day after TON Society developers set aside $5 million in Toncoin to incentivize users to verify their identity using palm-scanning technology. The project aims to enable digital identity verification for Telegram users over the next five years and will distribute 1 million TON to users participating in the proof-of-personhood program.

The increased interest in TON helped it outperform ADA. TONs price has surged over 135% during the past month, while ADAs price has fallen 15%.

Zooming out further, TONs price increased 183% year-to-date, while ADA price fell 1.30%.

TON launched a $115 million community incentive program on March 20, with $38 million for token mining and user incentives, $22 million for airdrops, $15 million for The League developer ecosystem, and $40 million for liquidity pool boosts. The program aims to drive more user adoption.

In contrast with Toncoin, ADA saw little interest this year, as investor attention was focused on the United States Bitcoin exchange-traded funds (ETFs) and other major blockchain upgrades, such as Ethereums Dencun upgrade.

Related: With 10 days to the halving, analysts predict $150K Bitcoin top

Toncoins price action has been drastically outperforming Dogecoin (DOGE). TON rose 130% during the past month, while DOGE only gained 14.8%. Year-to-date, TON is up 177%, while DOGE is up 108%, according to TradingView.

While Dogecoins price action is purely based on speculation-driven demand, Toncoins utility within the Telegram messaging app can lead directly to its price appreciation with increasing user uptake.

On the downside, Toncoins token distribution could raise concerns among retail investors. According to CoinCarp data, over 60% of Toncoin is held by the 10 largest holders, while 93% of the supply is held by the 100 richest holders.

Related: Telegram Mini Apps are Trojan horse for mass blockchain adoption TON investments director

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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Telegram-linked Toncoin flips Cardano to become 9th-largest cryptocurrency - Cointelegraph