Toncoin (TON) experienced a massive price spike on May 28. The rally came after Telegram CEO Pavel Durov announced a new partnership with Elon Musk’s xAI. According to Durov, Telegram has signed a 1-year deal with xAI. The partnership will allow Telegram users to access xAI’s Grok chatbot. Telegram will receive $300 million in cash and equity from the AI company. The messaging platform will receive 50% revenue from xAI subscriptions sold via Telegram.

Toncoin (TON) Surges After Telegram-Elon Musk Deal

TON’s price is up 9.2% in the daily charts, 6.7% in the weekly charts, 3% in the 14-day charts, and 1.1% over the previous month. Despite the breakout, TON is still down by 48.9% since late May 2024.

Also Read: Toncoin (TON) Jumps 16% After Elon Musk’s Telegram Deal

TON’s price may have been helped by Bitcoin’s (BTC) recent surge to a new all-time high. The crypto market experienced one of its most significant market upswings earlier this month. Ethereum (ETH) also joined in on the fun. The second-largest crypto project by market cap registered double-digit percentage gains after its Pectra update.

Can The Asset Hit $10?

Telegram’s recent deal with Elon Musk’s xAI is a significant development. The TON network may see a surge in users once they gain access to the Grok AI chatbot. A surge in users could lead to a spike in TON’s price.

According to CoinCodex, Toncoin (TON) may face a price correction over the coming week. The platform anticipates the asset to trade at $2.29 on June 6. TON’s price will fall by 31.23% if it hits $2.29.

Given that the crypto market rally has slowed down, it is entirely possible that TON will face a correction. BTC’s price has fallen to the $107,000 price level. TON will most likely not rally unless BTC makes a move. TON may regain momentum once the original crypto generates steam.