TRON, a decentralized platform that uses blockchain technology to support smart contracts and decentralized applications, has reported a significant growth in Q1 2023. According to a report from MessariCrypto, TRON’s market cap has grown 18.8% QoQ, following the broader market trend.
The dynamic energy model and increased energy requirements led to greater revenue generation (+65.5% in TRX) and, therefore, the burn of TRX. The platform has also initiated developments to expand DeFi, including liquid staking and a decentralized resource marketplace.
Challenges Facing TRON’s Ecosystem
TRON is positioning itself in AI by partnering with Oraichain and launching a $100 million AI development fund. However, the SEC announced several lawsuits, stating that the BTT and TRX tokens were “offered and sold as a security, specifically as an investment contract.” The platform has a resource model based on distributing bandwidth and energy to stakers.
As long as stakers have acquired enough resources, they can use those resources to transfer tokens and execute smart contracts for free. Users must cover transaction fees if they utilize more computing power than their resources.
Despite declining account activity, average daily transactions grew by 7.7% to ~7 million over Q1. Smart contracts were triggered, and TRX transfers continued dominating transaction activity on the network, making up 88% of all transactions.
TRON’s circulating market cap has increased by 18.1% QoQ, suggesting a more favorable valuation. Greater revenue translated to a substantial amount of TRX burned, seeing as 100% of transaction fees in TRX are burned. The platform burned ~1.4 billion TRX and generated ~455 million, leading to a deflation rate of ~1% during Q1.
TRON is also making strides in the stablecoin landscape, with USDT maintaining 95% of the stablecoin value on the network. Its place in the stablecoin landscape remains substantial. It is second only to Ethereum in terms of the market cap of hosted stablecoins, holding over $43 billion at the end of Q1, up from ~$33 billion (+30%) QoQ.
Developer engagement has yet to catch up to the platform’s growth strategy. According to Electric Capital’s Developer report, full-time developers are relatively small in number but have remained stable at 16 over the last year.
The platform aims to grow its developer community through its continued seasons of Grand Hackathons and strategic funds like the AI development fund and the $1 billion TRON DAO Ecosystem Fund.
Despite TRON’s progress toward its long-term goals and continued adoption, the network still faces challenges. However, it remains strong and continues to empower DeFi and collaborate on AI projects with Oraichain.
Related Reading | Ripple To Expand Footprint In Dubai With New Office & Swell Global Conference