This month, as the total assets under management of Bitcoin ETFs continue to rise, exceeding US$55 billion, the price of Bitcoin has repeatedly exceeded US$70,000, setting an impressive all-time high.

However, in the booming bull market of the crypto industry, we find that TRON is continuing to rise with its unique and powerful consensus. The price performance of its native token, TRX, has been rising over the past few months and is one step away from an all-time high. What’s even more striking is that, looking back on the past year, TRX has shown sustained growth momentum, with an increase of 139.5%. Not only does this allow holders to reap substantial gains, it also highlights TRX’s superior performance in terms of market capitalization.

In terms of its position in the global crypto asset market, TRX is firmly at the forefront. As of now, it has successfully entered the "Ten Billion Dollar Market Value Club" with a market value of 119.05 In terms of TVL data, the total locked value of the TRON network has exceeded US$25.8 billion, which has also enabled TRX to capture value greatly.

Compared with the silence of other established projects during the same period, driven by Justin Sun, TRX’s steady rise in the market has undoubtedly confirmed its own value. In addition to its outstanding performance in TVL growth, protocol revenue and other data, TRON's ecology is also increasingly prosperous. What cannot be ignored is that TRON also occupies a dominant position in the stablecoin market. All of this is an integral part of the value of TRX today. With the support of these fundamentals, the consensus of TRON is also reflected in the market value of TRX today, creating TRX’s extraordinary attention and consensus.

What supports TRX’s outstanding performance?

Looking at TRON based on on-chain data, is TRX undervalued?

Whether it is TVL data or protocol revenue data, TRON’s performance is very good.

The first is the Total Value Locked (TVL) data. TVL data can reflect the total value locked by users in various protocols in the DeFi ecosystem. It can be said that It is a barometer of the DeFi ecology, and it is also a battleground for various public chains to compete for the most intuitive data indicators of crypto market liquidity.

According to DefiLlama data, TVL has stabilized between US$4 billion and US$6 billion in the past few years since it reached US$6.5 billion at the end of 2021, and will gradually increase from 2023 onwards. Steady growth and an upward trend. As of the time of writing, the TVL of the TRON network has exceeded US$25.8 billion, reaching a record high.

The TRON network stands proudly in this fierce competition and has become the most eye-catching growth rate of TVL. In comparison, in the past year, the TVL growth rate of the TRON network was 84%, surpassing most leading public chains and second-layer protocols including Ethereum, BNB Chain, Arbitrum, Avalanche and Optimism. Although Ethereum still maintains its leading position in TVL, TRON has been following closely with its steadily rising performance, accounting for 10% of the entire market, firmly ranking second on the TVL list, and continuing to lead BNB Public chains and second-layer protocols such as Chain, Arbitrum and Solana.

It can be said that TRON’s TVL data performance is better than most public chains with market capitalization before it. From this perspective, the price of TRX may be underestimated. This view is also confirmed in the Mcap/TVL data. Taking Ethereum as an example, its Mcap/TVL value is 8.45, while TRON’s Mcap/TVL value is 1.12, BSC is 13.87, Solana is 20.79, Avalanche is 16.76, Polygon is 9.52, and Optimism is 4.26.

Generally speaking, the lower the Mcap/TVL ratio, it means that the market value is lower relative to the market value of the crypto assets locked by the user in the project, which may mean that the Projects are undervalued. Comparing the Mcap/TVL ratio data of several currently active public chains, it can be clearly seen that TRON's Mcap/TVL ratio data is basically one-tenth of that of other public chains, and it is very likely to be underestimated.

In addition to TVL data, protocol revenue is also a key indicator. Not just in the crypto space, but even in the traditional investment world, income has always been an important indicator of financial health, financial vitality and future development potential. According to DefiLlama data, the daily protocol revenue of the TRON network hit a new high of $1.97 million on February 29, and then set a new record on March 5, reaching $2.31 million. The current daily revenue is stable at around $2 million.

The growth in protocol daily revenue directly reflects the financial vitality and market recognition of the TRON ecosystem. High protocol revenue not only means that the TRON network has higher liquidity in the DeFi ecosystem, but also provides a solid financial foundation for its future innovation and expansion.

This will also further attract more developers and users to join the TRON ecosystem, forming a virtuous cycle, thereby indirectly empowering the currency price, or having a negative impact on TRX Price movements have a positive impact.

The absolute dominance of stablecoins

In addition to data such as TVL and protocol revenue, TRON has more It is the leader in the field of stablecoins, and can even be said to dominate the demand for stablecoins. It is the well-deserved absolute king of USDT.

Since October 20, 2023, Tether Treasury has minted a total of over 13 billion USDT on Ethereum and TRON. This huge number is not so much the increase of more liquidity, but the market’s high recognition of the TRON network in terms of infrastructure, security, and user experience.

Digging further into the data, according to statistics from The Block Data, the total supply of stablecoins on the TRON network has reached 52.7 billion US dollars, surpassing the Ethereum network. Consolidating its strong position in the stablecoin market.

In the past by Bitcoin Under the entire encrypted public chain market dominated by Ethereum, the TRON network has successfully occupied a strong position in the total stablecoin supply, and it can be said to have relatively strong market competitiveness.

According toDune data shows that whether it is USDT cross-chain receipt volume or USDT cross-chain sending volume, the TRON network data is higher than other networks, further demonstrating its absolute dominance in the field of stablecoin trading.

As we discuss various In the context of RWA or US dollar cross-border settlement services, the role of stablecoins is inseparable. All of these will help TRON build market competitiveness and influence.

Related reading: "Redefining Tron: a USDT-specific chain"

In the end, the massive use of the TRON network not only brought favorable TRX supply dynamics , and at the same time, with the growth of the network, it is transformed into the continued fees of the TRX network and the continued deflation of the TRX token, which ultimately affects the TRX price.

The TRON ecosystem is surging

Based on the unique advantages of its stable currency, TRON's DeFi ecosystem also shows a rich and colorful appearance. The core products represented by Justlend, Sunswap and stUSDT provide users with diversified financial services, covering multiple fields such as lending, trading and RWA.

Justlend, as an important part of the TRON DeFi ecosystem, provides powerful lending services. According to the Messari data chart, throughout 2023, JustLend played an important role in TRON's DeFi ecosystem, with hundreds of millions of dollars in TUSD deposited in JustLend at different times. Justlend’s TVL currently exceeds $7.5 billion, accounting for a major share of the TRON network. Just like the TRON network TVL, Justlend’s TVL has also been showing a steady upward trend, and users’ trust and participation in its lending services have gradually increased.

Through the dual effects of low-cost borrowing rates and efficient liquidity, we will promote the prosperity of the entire TRON ecosystem and create a better environment for TRON users. More financial opportunities also enhance the TVL growth and healthy operation of liquidity of the entire ecosystem.

Sunswap and stUSDT are also waves An indispensable part of the TRON ecosystem, Sunswap creates a convenient digital asset exchange environment for traders through the advantages of low handling fees and high security. At the same time, as a synthetic asset, stUSDT not only maintains the stable value of USDT, but also provides users with more flexible investment and trading options by being linked to actual assets.

Through the combination of these high-quality projects, it not only expands the boundaries of TRON DeFi, but also enriches the TRON DeFi ecosystem, and also enhances the TVL growth and flow of the entire ecosystem. Healthy sexual functioning. TRON not only supports the development of high-quality projects, but has also reached multiple strategic cooperations.

Especially in September last year, Google Cloud incorporated TRON into the BigQuery public data set, providing users with more convenient data query services. The commercial use of Huawei Cloud Web3 node engine service NES has injected more powerful technical support into the TRON ecosystem. This series of cooperative initiatives has greatly improved the understandability and usability of TRON, while providing developers with more opportunities for innovation and cooperation.

On this basis, in order to attract more innovators and developers around the world to enter the TRON ecosystem, TRON welcomes hackers The grand launch of the sixth season of the Pine Contest, with a total prize money of up to US$650,000. This is not only an affirmation of the results of past cooperation, but also an expectation for future innovative cooperation, laying a solid foundation for the vigorous development of the TRON ecosystem.

Such cooperation results not only mean that TRON is accelerating the expansion of its influence globally, but also that its technical strength in the blockchain field has once again been strengthened. recognized. From an investment perspective, these strategic cooperation provide TRON with a wider range of application scenarios and achieve stronger market recognition globally. This series of recognition will eventually feed back into the value of TRX, forming a stronger value consensus.

Where will TRON go in the future?

Metaverse Financial Freeport

On June 25, 2018, TRON was officially launched Mainnet. As the token is separated from Ethereum, TRON will operate completely independently. June 25th is thus called “Independence Day” by the TRON team. With the development over the years, Tron has entered a new stage of development, with a new roadmap and new development direction.

June 7 last year According to relevant sources, Sun Yuchen said in an internal speech that TRON has formed three major business models of "public chain + trading platform + stable currency". In the future, it will focus on the layout of its own ecology and industry construction, and move towards "Yuanverse Financial Freeport" efforts.

At last year's StarkWare Sessions 2023 conference, Visa head of encryption Cuy Sheffield said that a stable currency large-value payment settlement system based on Ethereum is being developed. He is also very optimistic about the TRON network, especially daily on-chain payments. TRON's performance is the best for payment data with an amount less than 200 US dollars, which will be of great help in implementing the "Metaverse Financial Freeport" route.

We can imagine the future While building the "Yuanverse Financial Freeport", TRON will also accelerate the pace of internationalization and compliance, continue to promote the prosperity and development of the ecosystem, and combine various industry tracks, such as education, environmental protection, artificial intelligence and other fields.

With the continued development of these series, TRON’s development blueprint will become more realistic, and it will also draw a more concrete and detailed picture of its future growth. A viable vision. More importantly, under this route, the market value of TRX may also open up new narrative space and growth space just like the "Independence Day" of the past.

Enter Bitcoin Layer 2

On February 15, Sun Yuchen posted on his social media announces its Bitcoin Layer 2 solution and roadmap.

Obviously, after a new round of "cooling off period", the Bitcoin ecosystem is moving towards a diversified development path. The community's demand for more and more advanced infrastructure is growing, and expectations and consensus are growing. Especially the BTCFi ecological track including Bitcoin Layer 2, DeFi and cross-chain tracks.

With the entry of Bitcoin Layer 2 such as Merlin and B Square, the market space and prospects of the Bitcoin staking track are already foreseeable, such as the current Bitcoin Layer 2 The leader, Merlin, has pledged more than $3 billion in assets. Obviously, the potential and growth space of the Bitcoin ecosystem are still very large.

TRON users can not only participate in more re-pledge plans of the Bitcoin Layer 2 network, but also support Bitcoin through TRON’s diversified asset portfolio The development of the Layer 2 ecosystem provides strong support for the continued growth of TRX's market value.

After the TRON network enters Bitcoin Layer 2, it will promote more stable coins to enter the Bitcoin ecosystem and open up the liquidity and vitality of TRON and Bitcoin.

While TRON realizes interoperability between TRON tokens (such as USDT, TRX, BTT, etc.) and the Bitcoin network, the Bitcoin Defi market The scale and even the market value and potential of the Bitcoin ecosystem may flow into TRON. This move will provide narrative support for the continued rise in the market value of TRX.

TRON embracing AI

In February last year, Justin Sun posted on social media TRON will provide a decentralized payment framework for the AI system ChatGPT, which covers the on-chain smart contract system, payment layer protocol, underlying calling SDK and AI payment gateway. With TRON’s fast and low-cost transaction features, developers can easily and securely receive payments for their AI services.

Obviously, with the rapid evolution of digital technology and the booming global trend of artificial intelligence, AI has become a key driving force in various industries.

Especially in the Web3 era, the combination of blockchain and artificial intelligence is regarded as a future development trend, which will lead to more innovation and change. Against this forward-looking background, TRON’s active embrace of AI development opportunities has become a high-profile move.

Although it is difficult for us to see the real implementation of the combination of blockchain and artificial intelligence in the short term, in the hotly hyped encryption industry, we may be able to imagine that in the After superimposing the AI concept, TRON's market value will usher in a new development period.

From a longer-term perspective, the global AI trend will definitely intensify, and the combination of blockchain and artificial intelligence must be the most certain thing in the future. One of the development directions is that TRON also has certain financial strength to promote this direction.

On the one hand, it may improve the smart contract execution efficiency of the TRON system, and on the other hand, it can attract more funds and liquidity into TRON, so that TRON is more competitive in the industry, which is also a long-term benefit to the price and market value of TRX.

Encryption evergreen, TRON is more than that

Changing in a long cycle Many crypto-assets have long since passed with the passage of time, but TRX still stands, withstood the test of market bulls and bears, and continues to expand its rich application scenarios.

In addition to his great contributions to the construction of industry infrastructure, Justin Sun, as the OG of the entire crypto industry, has had great influence and leadership in multiple market cycles. protrude. Although he is not without controversy, he rarely defends himself. In the DeFi field where liquidity is king, Justin Sun's contribution to the growth of TVL in the entire industry is obvious, and it has also brought new confidence and motivation to the entire industry.

In this round of market growth, the success of TRON and TRX is unquestionable. TRON's market value and TVL have been growing, revenue has hit new highs, ecological cooperation has been built, and the dominant position in the stablecoin market has been consolidated. All these factors have jointly contributed to the market's solid consensus on TRON.

At the same time, judging from various current data such as the Mcap/TVL ratio and community consensus, the value of TRX is obviously underestimated. The confidence of investors and the community in its future development continues to increase. As TRON continues to explore new routes and new opportunities, the future potential of TRX will continue to be opened up.

Obviously with Justin Sun’s influence in the encryption market, TRON’s ambitions must not stop there, and TRX’s future must also not stop there.

The bigger the wind and waves, the more expensive the fish. As the bull market in the entire crypto market becomes stronger and stronger, I believe that the value of TRX will continue to be discovered, the consensus will be stronger, and time will be the best witness.

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