The Tron blockchain saw increased usage in the first quarter of 2023, according to a new report from market intelligence firm Messari. The market cap of its native token, TRX, is up nearly 20% on a quarterly basis.
Despite the US Securities and Exchange Commission (SEC) announcing several lawsuits against the Tron ecosystem tokens, the network’s activity has remained mostly undisturbed. Its total quarterly revenue increased by $90.04 million in the first quarter of 2023, seeing an 88% jump from fourth-quarter 2022 revenue of $47.96 million.
Tron State: First Quarter 2023
Average daily transactions over the three months under review grew by 7.7% to nearly 7 million. Al-Masari stated that the increase can be attributed in part to online storage activity. The total number of transactions originating from staking activity increased by 197% on a quarterly basis, despite accounting for only approximately 3% of all transactions on the TRX network.
state you can see a report, commissioned by Tron, stated that transactional activity on the network was mostly dominated by smart contracts launched and TRX transfers, which accounted for 88% of the total. Although activity across both types of transactions was relatively flat throughout the first quarter, the USDT smart contract remained the main catalyst for contract execution on TRON.
Transaction fees also rose significantly in the first quarter. Statistics revealed that the average transaction fees for TRX and USD increased by 59.2% and 80.2%, respectively. The Committee’s Proposition 79, which was passed in the previous quarter, played a crucial role in driving transaction fees. The proposal in question fundamentally changed network parameters and increased the amount of power required to execute smart contracts.
Moreover, the dynamic energy model was enabled earlier this year as part of TIP-474. The mechanism mainly focuses on increasing transaction costs and discouraging low-value smart contract transactions that do not affect other applications.
“Dynamic energy model and increased energy requirements led to increased revenue generation in TRX (total transaction fees paid in TRX), which increased by 65.5% QoQ (+87.7% in USD). At the same time, the traded market capitalization of TRX increased up 18.1% on a quarterly basis.”
Tron DeFi, the Stablecoin space
Total Value Locked (TVL) in USD rose 18.8% in the first quarter of the year. But TVL denominated in TRX saw a slight decrease of 0.5%. Such a trend suggests that “it was the increase in asset prices in US dollars that drove TVL rather than the influx of new capital.”
The top protocols by TVL on top of the Tron network – JustLend and JustStables – also benefited from the broader market recovery throughout the first quarter. As a result, both protocols increased by 26% and 21%, respectively.
Tron’s position in the stablecoin scene remains significant as it lags behind Ethereum. The Justin Sun-led platform also outperforms other competing chains in terms of the market cap of the stablecoins hosted. At the end of the first quarter, it accounted for more than $43 billion, up from about $33 billion quarter-over-quarter. Moreover, Tron’s USDT market cap also increased by 30% to $10 billion on a quarterly basis, owing to Tether’s exchange of $400 million of ERC-20 to Tron.
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