USDT continued to dominate the TRON network in 2024, but there was a noticeable increase in decentralized trading and meme coin generation.
The network’s native currency, TRX, and its wrapped version, WTRX, have seen significant adoption by decentralized finance (DeFi) activity. This was particularly seen with SunSwap, a Tron-based decentralized exchange (DEX), which triggered an influx of new tokens and an increase in trading activity, which facilitated Tron’s diversification beyond stablecoin trading.
Tron’s transition beyond stablecoin trading
According to CryptoQuant’s latest analysis, Tron network activity remains heavily influenced by USDT, with its supply increasing from $48 billion to $62 billion in 2024. During the same period, USDT remittances jumped from $362 billion to $576 billion. Along with this, the monthly remittance amount also increased from 55 million to 62 million. USDT continues to dominate as the most transferred asset, accounting for 99% of token activity.
But Tron reached a tipping point in DeFi activity last year, with SunSwap leading the way as the most active decentralized exchange on the network. By August, monthly transactions on SunSwap had increased to 4 million, 97% of which involved WTRX. From August to December, total swap trades increased to 8.3 million, reflecting increased DeFi engagement.
More than 80% of these trades involved WTRX, and its swap volume soared from 4.2 billion units to 20 billion units ($4.1 billion) by the end of the year. The launch of meme coin generator SunPump further boosted network activity by simplifying the creation of meme coins, resulting in the introduction of 94,000 new tokens and a surge in trading volumes.
In another milestone, TRON overtook Bitcoin as the most used payment blockchain, ultimately securing 31.5% of all transactions. However, these developments failed to increase the price of TRX.
Is TRX recovery short-lived?
TRX made a comeback last year, instilling new confidence and returning to #10 in market capitalization. However, a subsequent market correction pushed the asset price up to $0.225, down nearly 50% from its recent high of $0.43. Hopes for a local bottom also proved short-lived when TRX fell below the $0.23 mark.
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