Geneva, Switzerland, 10th February, 2023, Chainwire Messari, a leading provider of blockchain research and data analysis, has released its quarterly reports on the State of TRON and the State of USDD for the fourth quarter of 2022. STATE of USDD Their first report, “State of USDD Q4 2022,” showcases the performance of USDD, a stablecoin […]
Geneva, Switzerland, 10th February, 2023, Chainwire
STATE of USDD
Their first report, “State of USDD Q4 2022,” showcases the performance of USDD, a stablecoin pegged to the US dollar, managed by the TRON DAO Reserve, and circulating on multiple blockchains, including TRON, Ethereum, and Binance. The report highlights that USDD saw continued growth in Q4 2022, in spite of the crypto winter, noting its circulation volume increased from a little over $6 billion to nearly $8 billion USD. This growth was primarily driven by the increasing demand for stablecoins as a safe haven for investment and for cross-border transactions. The report also mentions the key advantages of USDD, including its stability, low volatility, and ease of use, which have made it an attractive option for individuals and institutions alike.
Here are a few other highlights from Messari’s USDD report:
- The number of wallets on TRON holding USDD slowed its growth in Q4 with only an 8% increase. Matching the 480.4% growth from Q2 to Q3 was not to be expected, though.
- TRX balances in the TRON DAO Reserve remained the same from Q3 to Q4. Not including TRX, the collateral ratio for the stablecoin is below 1 at 0.87. Including TRX in the reserve wallets and deposited in the burn account, the collateral ratio is 1.7.
- Partnerships with Travala, the world’s leading blockchain-based travel booking platform, which now accepts USDD for payment, other developing partnerships for utility in everyday commerce, and its multi-chain circulation all indicate the growing adoption of USDD.
STATE of TRON
The second and much longer report, “State of TRON Q4 2022,” analyzes the overall performance of TRON, a public open-sourced blockchain network using a Delegated-Proof-of-Stake (DPoS) consensus mechanism that is powered by the TRON Virtual Machine (TVM). Unlike Ethereum, TRON uses “energy and bandwidth” instead of “gas” for validations on the network and offers developers less expensive smart contract execution. Similar to Ethereum, Solidity is the programming language of TRON.
The report highlights that TRON’s leadership in the stablecoin space remained steady. Possibly related to its stable currency strength, the Commonwealth of Dominica designated TRON the official protocol for its national blockchain infrastructure and approved seven TRON-based cryptocurrencies as legal tender for everyday use in the country. Average active daily addresses increased 17.9%, with an unusual spike on December 10 of 1.3 million new accounts. Average daily transactions also increased 22.4%. What stood out the most, especially in light of the bear market moment, was that total quarterly revenue increased 25.3%.
The report also highlights the key advantages of TRON, including its scalability, low transaction fees, and user-friendly interface, which makes it an attractive option for developers and entrepreneurs. Here are a few other highlights from the TRON report:
- 38% more TRX was burned in December than in October. “As such, TRX continues to be deflationary,” according to the Messari report.
- As of December 31, TRON nodes were distributed across more than 30 geographic locations around the globe, with ~23% (1,330 of the 5,730 TRON nodes) located in China.
- Compared to TRON’s “peer group” of pioneering blockchain leaders – Ethereum, Binance, and Polygon:
- TRON led the way in percentage of total revenue increase in Q4
- TRON had 6x the number of daily transactions compared to Ethereum, 2x compared to Polygon, and nearly 2x compared to Binance
- TRON lags behind the other three in number of protocols using its network
- TRON gained 2% of the peer group’s stablecoin market share
- TronLink, TRON’s recommended digital assets wallet, integrated with Android and iOS and rolled out features, including the ability to stake TRX for Energy and Bandwidth.
- In Q4, the $1 billion TRON DAO Ecosystem Fund launched TRON DAO Ventures (TDV) and added it to its list of existing investment pathways.
- An increase in application usage was evident in Q4, as smart contract triggers were up ~45% QoQ.
- The TRON community of developers continued to grow with three seasons of Hackathons including over 2300 participants and the launch of TRON Academy with blockchain-club partnerships on seven top tier university campuses.
- The report also favorably mentions that TRON joined the Ethereum Enterprise Alliance, suggesting it “could catalyze collaboration between the two networks.”
Overall, considering the state of the crypto market in Q4, Messari’s reports indicate steady strength, ongoing growth, and a bright future both for the TRON network and the USDD stablecoin. As user accounts keep increasing, powerful partnerships are being forged, and the developer community continues to grow, all signals indicate that TRON is resolved to build the future of commerce and community for every human on the planet.
Messari provides market intelligence that drives high-conviction participation in the crypto economy.
We help professionals, builders, and communities navigate web3 by providing world-class tools and intelligence. Founded in 2018, Messari is the leading provider of crypto market intelligence products that help professionals navigate crypto/Web3 with confidence. We bring transparency and smarter qualitative and quantitative analytics to the industry by combining a global research database with a comprehensive suite of data visualization and asset discovery tools. We help drive smarter participation in crypto from individuals and institutions alike.
About TRON DAO
TRON DAO is a community-governed DAO dedicated to accelerating the decentralization of the internet via blockchain technology and dApps.
Founded in September 2017 by H.E. Justin Sun, the TRON network has continued to deliver impressive achievements since MainNet launch in May 2018. July 2018 also marked the ecosystem integration of BitTorrent, a pioneer in decentralized Web3 services boasting over 100 million monthly active users. The TRON network has gained incredible traction in recent years. As of February 2023, it has over 141 million total user accounts on the blockchain, more than 4.8 billion total transactions, and over $11.2 billion in total value locked (TVL), as reported on TRONSCAN. In addition, TRON hosts the largest circulating supply of USD Tether (USDT) stablecoin across the globe, overtaking USDT on Ethereum since April 2021. The TRON network completed full decentralization in December 2021 and is now a community-governed DAO. In May 2022, the over-collateralized decentralized stablecoin USDD was launched on the TRON blockchain, backed by the first-ever crypto reserve for the blockchain industry – TRON DAO Reserve, marking TRON’s official entry into decentralized stablecoins. Most recently in October 2022, TRON was designated as the national blockchain for the Commonwealth of Dominica, which is the first time a major public blockchain partnering with a sovereign nation to develop its national blockchain infrastructure. On top of the government’s endorsement to issue Dominica Coin (“DMC”), a blockchain-based fan token to help promote Dominica’s global fanfare, seven existing TRON-based tokens – TRX, BTT, NFT, JST, USDD, USDT, TUSD, have been granted statutory status as authorized digital currency and medium of exchange in the country.