TRON and USDD Resilience Unveiled: Insights from Messari, Reflexivity, and JPMorgan’s Analysis
Geneva, Switzerland, August 8th, 2023, Chainwire
In-depth reports on the performance of TRON and USDD in 2023, published by renowned blockchain analytics firms Messari and Reflexivity have recently been published.
Messari’s Analysis: TRON’s Q2 2023 Performance
Messari’s report highlights TRON’s substantial growth across various performance metrics.
Growth in Network Activity: The report observes TRON’s daily average active accounts, new accounts, and transactions surging by 14%, 13.4%, and 28.9% respectively, paralleling the rollout of BitTorrent Bridge and Stake 2.0 integrations.
Outshining Other L1’s: The report additionally underscores TRON’s exceptional performance in Q2, highlighting a 14.7% QoQ market cap increase, in stark contrast to a 23% average decline for other major Layer 1 blockchains.
Expanding the DeFi Sphere: The report applauds TRON’s efforts to continue to expand DeFi, with several applications and infrastructure providers integrating TRX liquid staking and the decentralized resource marketplace.
Enhancing Network Functionality: Finally, Messari notes TRON’s dedication to improving network functionality through the introduction of Stake 2.0 (TIP-467), GreatVoyage-V4.7.1.1 (Pittacus), and initiation of Great Voyage – V4.7.2 (Periander).
TRON employs a Delegated-Proof-of-Stake (DPoS) mechanism, with block validation being performed by a group of validators known as Super Representatives (SRs). Interestingly, the pool of SR candidates has grown from ~390 in Q1 to over 400 in Q2, illustrating the democratic nature of TRON’s ecosystem.
At the end of Q2, TRON nodes were dispersed across more than 75 global locations. This diverse geographical distribution of nodes is a promising step towards a more decentralized network, reducing vulnerabilities to localized disruptions and geopolitical risks.
Messari’s Analysis: USDD’s Q2 2023 Performance
Messari’s report also paints a positive picture for USDD during Q2.
Peg Stability and Increased Backing: Messari notes that USDD traded close to its peg throughout Q2, allowing an accumulation of $13 million in backing within the PSM and a return to balance in the Curve pool.
Adoption Metrics: The report states that USDD’s adoption metrics remained stable with volumes and holders experiencing minimal fluctuations quarter over quarter.
Improved Backing: The backing for USDD strengthened in Q2, with BTC and TRX prices rising 7% and 15% respectively. Notably, with the inclusion of TRX assets, the stablecoin is now 171% collateralized, showcasing a robust backing that provides stability to its value.
Q2 saw the initiation of governance for USDD. The Messari report details how TRON DAO Reserve activated the first governance proposal, allowing TRX holders to vote, signifying the increasing democratization of USDD’s operations.
Reflexivity’s Analysis: TRON’s H1 2023 Performance
Reflexivity’s report starts with an overview of TRON’s network design, highlighting the network’s high transaction speed, low cost, and hosting of the largest circulating supply of Tether (USDT). Utilizing a Delegated-Proof-of-Stake (DPoS) consensus mechanism, TRON maintains 27 Super Representatives elected by the community every six hours, from a pool of ~400 Super Representative Candidates, resulting in seamless network operations.
Network Performance: In the first half of 2023, TRON’s block height exceeded an impressive 52.5 million with 7,385 nodes across the network, marking a substantial 33.5% increase. Reflexivity underscores the significance of Stake 2.0, which was approved and deployed on TRON’s mainnet in early April, bringing about major enhancements in resource utilization and system stability.
Influence in the Stablecoin Ecosystem: TRON’s growing influence in the stablecoin ecosystem has been evident, absorbing over $5 billion in stablecoin inflows following the USDC depeg in March. Overall, the market capitalization of stablecoins on TRON saw a substantial 30.3% surge in the first half of the year, signifying its rising dominance.
Reflexivity’s Analysis: USDD’s H1 2023 Performance
Reflexivity’s report on USDD demonstrates the stablecoin’s resilience and adaptability during a tumultuous first half of the year.
Stability and PSM: By the end of H1, USDD’s collateral ratio stood at a robust 177.8%, marking a vital element of its stability. The Peg Stability Module (PSM), allowing 1:1 conversions from USDC to USDD, facilitated over $640 million in volume for Q2, playing a crucial role in maintaining the peg’s stability.
Partnerships and Integrations: The report emphasizes USDD’s continued expansion in its partnerships and integrations with other key players in the crypto industry. From major chains and protocols to wallets and external service providers, USDD has successfully extended its reach and functionality. Partnerships include Venus, BSC’s leading borrow-and-lend protocol, and Huobi.
JPMorgan Acknowledges TRON’s Performance in Difficult DeFi Conditions
A recent article on The Block reflects on JPMorgan’s comments concerning the resilience of certain segments in the DeFi ecosystem following the Curve Finance attack. The analysts highlighted the positive performance of the TRON ecosystem. Despite the broader market turbulence, TRON has seen their total value locked (TVL) increase over the recent months.
“The rise in their TVL could be attributed to them offering faster and cheaper transactions to users, who otherwise were facing network congestion and higher transaction costs in Ethereum,” the analysts said. This statement further underscores the insights from the Messari and Reflexivity reports, reinforcing TRON’s performance amidst challenging market conditions.
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 August 2023, it has over 177.44 million total user accounts on the blockchain, more than 6.22 billion total transactions, and over $13.27 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. Most recently in October 2022, TRON was designated as the national blockchain for the Commonwealth of Dominica, which marks the first time a major public blockchain partnered 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.
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About USDD
USDD is an over-collateralized decentralized stablecoin launched collaboratively by the TRON DAO Reserve and top-tier mainstream blockchain institutions. The USDD protocol runs on the TRON network, is connected to Ethereum and BNB Chain through the BTTC cross-chain protocol, and will be accessible across more blockchains in the future. USDD is pegged to the US Dollar through TRX under a Linked Exchange Rate System (LERS) and maintains its price stability under the guidance of the TRON DAO Reserve. It enables access to a stable and decentralized digital dollar system that in turn assures financial liberty for everyone. With the designation of TRON as the national blockchain for the Commonwealth of Dominica, USDD has been granted statutory status as authorized digital currency and medium of exchange in the country effective on October 7th 2022.