Footprint analytics: how does Tron differ from other blockchains?

Following live broadcasts on the main network in 2018, Tron’s total locked value (TVL) reached $ 11 billion on December 9 (including its management token, TRX, invested), Tronscan said.

What is Tron?

Tron is one of the world’s largest blockchain decentralized operating system applications. Tron provides compatibility with Ethereum smart contracts through a plug-in smart contract protocol. The throne is based on the enhanced consensus mechanism dPoS (Delegated Proof of Stake), which ensures high TPS (transaction per second) throughout the network.

Tron’s vision includes:

  • Creating an ecosystem platform where everyone can participate and everyone can make money
  • Reduce costs and increase user comfort
  • Providing developers with an easily scalable network and promoting their ideas and values, and enabling anyone to participate in the Tron Ecosystem

Throne Ecosystem Fund

The development of the Throne cannot be separated from its contribution to the ecosystem fund. The throne improved and arranged the infrastructure in Defi, stablecoin, NFT, GameFi, oracle, etc., to expand Tron’s ecosystem map.

More than $ 450 million has been dedicated to rewarding participants in DeFi mining. The Tron Foundation has also launched several liquidity mining campaigns for the JustLend and JustSwap lending protocols, and Tron founder Justin Sun will reward participating miners and veCRV owners by issuing 5 billion SUN tokens over a 5-year period.

The TRON Foundation also launched the $ 120 million Tron DeFi eco-association program in September 2020, welcoming developers already involved on other blockchains. Since then, the foundation has held several development conferences to promote rapid ecosystem development.

On October 26 this year, Justin Sun tweeted again to announce that he would use the $ 1,111,111,111 fund to continue building the Throne Ecosystem. The fund will be the first to support Frog Nation, a DeFi project that has tweeted Abracadabra co-founder Daniele Sestagalli under the slogan “Occupy DeFi” (#occupydefi), and the BitTorrent chain.

With strong financial support at DeFi, Tron also joined the NFTs. In November, to support NFT and artists, Tron created a $ 100 million fund in collaboration with the NFT APENFT exchange, where artists can also get advice on legal aspects such as copyright.

Reasons for Throne’s growth

Increased investment in the DeFi project led to a significant jump in TVL for Tron, which according to Footprint Analytics reached $ 7.5 billion in DeFi.

Imprint analytics: Tron TVL
Imprint analytics: Tron TVL

Throne growth is mainly related to two aspects.

One is market prediction. The rapid growth of TVL relies mainly on the explosion of DeFi, which also proves the correctness of its strategic direction. Justin Sun believes DeFi and NFT are the biggest boom in the last two years and will continue to plow deeper into these two areas.

Second, Tron has several different ecosystem benefits, such as 2000 TPS, much lower fees compared to Ethereum, and an easier user experience. One of the most attractive things for users is that there is a free USDT transfer in Tron.

Compared to the high gas charge at Ethereum, the zero charge is very attractive for those making small transfers. Users also don’t have to pay to transfer and access system resources, and contractors don’t need to access system resources, which actually reduces costs for developers. At the same time, developers, users and contractors can benefit from it, which is a source of high growth.

A detailed look at Tron’s sectors

According to data included in Footprint Analytics, the main DeFi projects on Tron are the JustLend loan project, the DEX SunSwap project, the stablecoin projects JustStable and SUN.io, and the cross-chain bridge Just Cryptos.

Footprint analysis: Tron TVL by protocols
Footprint analysis: Tron TVL by protocols

As for lending, Tron’s first official lending protocol, JustLendTVL, had $ 1.7 billion as of Dec. 9. And on the DEX side, JustSwap was the first DEX protocol on the Throne.

SUN.io, launched in September 2020, is the first integrated project on Tron that combines stable coin exchange, mining and management, with a $ 6 TVL from 9 December. SUN.io has completed the purchase of JustSwap and will build SUNSwap, the largest DEX project in the chain. Following the brand upgrade, SUNSwap will collect DEX, liquidity mining, stable coin investment and management. The SUNSwap token will also be used for protocol management and reward for LP. SUNSwap will fully nurture the entire construction of the Tron ecosystem and undertake a vision of the Tron for the benefit of users.

As for stable coins, Tron’s schedule includes major stable coins such as USDJ, USDT, USDC and TUSD circulating in the chain. In addition to the fact that USDT is exempt from transfer fees, experienced users typically use the Tron trc20 instead of Ethereum’s erc20 when transferring USDT, making the Tron many times the $ 10 billion daily transfer volume of stable coins.

TronLoot, a textual NFT application protocol, has also launched its campaign to buy blind boxes in Tron, which allows users to open blind boxes, which can also be sold later. Compared to Ethereum, Tron has cheaper transaction fees, which has allowed the game to gain significant popularity within half a month.

After NFT, Tron also embarked on GameFi. Tron’s first horse racing game, WIN NFT HORSE, was launched on November 28 along with the APENFT Foundation and Winklink. In the metaverse, Tron also continues to explore, and announced that Tron has completed the first ecological complex from MetaEstate to Cryptovoxels.

Conclusion

Tron is actively building in state-of-the-art blockchain areas, such as GameFi, and is continuously providing developers and users with its own ecosystem fund. Once the fund is spent, the long-term development of the blockchain will depend on excellent developers who will build applications on the chains that can attract users.

This report was brought to you by Footprint Analytics.

What is Footprint

Footprint Analytics is a comprehensive analysis platform for blockchain data visualization and insight detection. It cleans and integrates data in the chain so users of any level of experience can quickly begin researching tokens, projects, and protocols. With over a thousand dashboard templates and a drag-and-drop interface, anyone can create their own custom charts in minutes. Discover blockchain data and invest smarter with Footprint.

Published in: Tron, Analysis
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