Tron Network’s Metrics Show Impressive Growth in Q4 2022
A recent report from market intelligence firm Messari has highlighted the impressive growth of the smart contract blockchain Tron in the final quarter of 2022. The report, known as the State of Tron, was commissioned by Tron itself and showed double-digit quarter-on-quarter growth across key metrics.
Record-Breaking Activity on the Tron Network
The report showed that average active daily addresses increased by 17.9%, with 1.3 million new accounts added on December 10th alone. Additionally, average daily transactions increased by 22.4%, while total quarterly revenue grew by 25.3%. The vast majority of transactions on the network were smart contract executions and transfers of Tron’s native cryptocurrency, TRX.
Potential Reasons Behind the Spike in Tron’s Activity
Messari identified several possible reasons behind the surge in Tron’s usage, including a delayed reaction among users to the collapse of FTX, with users “moving assets on TRON and seeking refuge in USDT.” Another possible catalyst was the launch of TCNH, an offshore Chinese Yuan-pegged stablecoin, on the Tron network, as well as the passing of a proposal to adjust TRX’s staking rate and burn volume.
Tron’s Performance Compared to Its Peers
Tron’s performance was compared to its “peer group” of layer 1 smart contract blockchains, and the results were impressive. Tron saw six times the number of daily transactions compared to Ethereum, twice that of Polygon, and nearly twice that of BNB Chain. Tron also led the way in terms of percentage increase in total revenue in Q4, and gained 2% of the peer group’s stablecoin market share.
Valuation Decline and Key Developments in Q4
Like many of its peers, Tron’s valuation declined over the quarter, ending Q4 down 11%. This decline was attributed to the impact of the FTX collapse on crypto prices. Nevertheless, there were several key developments in Q4 that were flagged by Messari, including the launch of the GreatVoyage-V4.6.0 (Socrates) client, the integration of the TronLink wallet with Android and iOS, the launch of staking features, and Dominica’s designation of Tron as its national blockchain.
Investment in Developers Pays Off
Tron’s investment in developers has paid off, with application usage on the network increasing in Q4. Smart contract triggers were up by around 45% QoQ, and the $1 billion TRON DAO Ecosystem Fund launched the TRON DAO Ventures (TDV) accelerator. Over 1,100 participants from 270 teams participated in the third season of the Grand Hackathon, and Tron launched the Tron Academy with partnerships across seven leading universities, including the first ever “Hacker House” on the Harvard University campus.
The State of USDD
According to the market intelligence firm, the number of USDD holders increased by 8% in Q4, a slowdown in growth from the previous quarter which saw USDD holders surge by 480.4%. The circulating volume of USDD increased by 27.3% QoQ, while the volume of USDD per transaction increased by 27.3%, averaging 210,000 USDD. USDD’s value is backed by the over-collateralization of crypto assets