Toncoin (TON) fell 2.5% to $1.23 on April 7, 2026, even as its underlying blockchain, The Open Network, executes a major upgrade designed to significantly enhance network performance.

The price drop suggests traders may be engaging in a “sell the news” event, a common pattern where an asset’s price declines after a widely anticipated positive event occurs, according to on-chain analysts tracking wallet movements.

The "Sub-Second mainnet" activation, scheduled between March 31 and April 12, is a critical upgrade for The Open Network, which is closely associated with the Telegram messaging app. The token now trades below its key short-term resistance level of $1.34, a price point it has struggled to overcome in recent weeks, CoinGecko data shows.

A successful upgrade could improve TON's scalability, potentially attracting more decentralized applications and users from Telegram's vast user base, which would support its long-term value. However, the immediate bearish price action highlights the short-term speculative pressures on the asset, with the market having already priced in the upgrade's expected benefits.

Upgrade Aims for High Throughput

The core of the update is to re-architect the network to achieve faster transaction finality, a key metric for blockchain usability. The goal is to create a more viable platform for high-throughput applications, positioning The Open Network as a stronger competitor to other Layer-1 blockchains like Solana (SOL) and Ethereum (ETH), both of which have their own scaling solutions and vibrant DeFi ecosystems.

For Toncoin, the risk is that the market has already factored in a perfect execution of the upgrade. Any hitches in the deployment between now and the April 12 conclusion could lead to further selling pressure. Conversely, a smooth rollout followed by a demonstrable increase in network activity and developer adoption could reverse the current trend and help TON establish a new support level above the $1.34 resistance.

This article is for informational purposes only and does not constitute investment advice.