Tron's Revenue Exceeded $90 Million in Q1 2023: Report

Tron's Revenue Exceeded $90 Million in Q1 2023: Report

According to a new report from market research firm Messari, the Tron blockchain saw a surge in usage in the first quarter of 2023. The market capitalization of its native token TRX increased by almost 20% compared to the previous quarter.

Although the US Securities and Exchange Commission (SEC) announced several lawsuits against Tron ecosystem tokens, network activity remained largely unaffected. Total quarterly revenue increased $90.04 million in the first quarter of 2023, an increase of 88% from fourth quarter 2022 revenue of $47.96 million.

Tron status: Q1 2023

Average daily transactions rose 7.7% to around 7 million in the three months under review. Messari stated that the increase was partly due to staking activity on the network. The total number of transactions resulting from staking activity increased by 197% compared to the previous quarter, although they only accounted for almost 3% of all transactions on the TRX network.

The “State of Tron” report commissioned by Tron states that transaction activity on the network is mainly dominated by triggered smart contracts and TRX transfers, accounting for 88% of all transactions. Although activity on both transaction types was relatively flat throughout the first quarter, the USDT smart contract remained the main catalyst for contract execution on TRON.

Transaction fees also saw an increase in the first quarter. The statistics show that the average transaction fee in TRX and USD increased by 59.2% and 80.2%, respectively. Committee Proposal No. 79, passed in the previous quarter, played a crucial role in triggering an increase in transaction fees. The proposal in question essentially changed the network parameters and increased the amount of energy required to execute smart contracts.

Additionally, the dynamic energy model was activated earlier this year as part of TIP-474. The mechanism essentially focuses on increasing transaction costs and reducing incentives for low-value smart contract transactions that have no impact on other applications.

"The dynamic energy model and increased energy demands resulted in higher revenue generation in TRX (total transaction fees paid in TRX), which increased by 65.5% quarter-on-quarter (+87.7% in USD). At the same time, TRX circulating market capitalization increased by 18.1% quarter-on-quarter."

Tron DeFi, stablecoin space

USD-denominated Total Value Locked (TVL) rose 18.8% in the first quarter of the year. However, TRX-denominated TVL saw a minor dip of 0.5%. Such a trend suggested that “an increase in asset prices in USD terms led to TVL rather than new capital inflows.”

TVL’s top protocols in addition to the Tron network – JustLend and JustStables – also benefited from the overall market recovery in the first quarter. As a result, both protocols increased by 26% and 21%, respectively.

Tron's position in the stablecoin landscape remains significant as it lags behind Ethereum. The Justin Sun-led platform is also ahead of other rival chains in terms of market capitalization of stablecoins hosted. At the end of the first quarter, the company had more than $43 billion, up from nearly $33 billion in the previous quarter. Additionally, Tron's USDT market cap also increased by 30% to $10 billion quarter-on-quarter as Tether exchanged $400 million in USDT from ERC-20 to Tron.

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