Why Has the Market Capitalization of TRX Surged? The "Hegemony" of TRON’s Stablecoin

This month, as the total assets under management of Bitcoin ETFs have continued to climb, exceeding $55 billion, the price of Bitcoin has broken through $70,000 several times, reaching a remarkable all - time high.
However, in the booming bull market of the cryptocurrency industry, we find that TRON is continuing to rise with its unique and strong consensus. The price of its native token, TRX, has been climbing in the past few months, getting closer to its all - time high. More notably, looking back over the past year, TRX has shown a sustained growth trend, with a gain of 139.5%. This not only brings considerable returns to holders but also highlights the excellent performance of TRX in terms of market capitalization.
In the global cryptocurrency market, TRX firmly ranks among the top. As of now, it has successfully entered the "billion - dollar market capitalization club" with a market capitalization of $11.905 billion. In terms of TVL data, the total locked - in value of the TRON network has exceeded $25.8 billion, which also enables TRX to capture a great deal of value.
Compared with the inactivity of other established projects during the same period, driven by Justin Sun, the steady rise of TRX in the market undoubtedly confirms its inherent value. Besides its excellent performance in data such as TVL growth and protocol revenue, the TRON ecosystem is also booming day by day. More importantly, TRON also dominates the stablecoin market. All these are integral parts of the current value of TRX. Supported by these fundamentals, the consensus of TRON is reflected in the current market capitalization of TRX, creating extraordinary attention and consensus for TRX.
What Supports the Outstanding Performance of TRX?
Looking at TRON from On - chain Data: Is TRX Undervalued?
Whether it is TVL data or protocol revenue data, TRON has performed extremely well.
First, the Total Value Locked (TVL) data. TVL data can reflect the total value that users lock in various protocols within the DeFi ecosystem. It is like a barometer of the DeFi ecosystem and also a key battleground for various public chains, being the most intuitive data indicator for competing for cryptocurrency market liquidity.
According to DefiLlama data, since the TVL reached $6.5 billion at the end of 2021, it has been stable between $4 billion and $6 billion in the past few years. Since 2023, it has gradually increased steadily. As of the time of writing, the TVL of the TRON network has broken through $25.8 billion, reaching an all - time high.
The TRON network stands out in this fierce competition and is the most eye - catching in terms of TVL growth rate. In comparison, over the past year, the TVL growth rate of the TRON network was 84%, exceeding most leading public chains and layer - 2 protocols, including Ethereum, BNB Chain, Arbitrum, Avalanche, and Optimism. Although Ethereum still leads in TVL, TRON, with its steady upward trend, closely follows it, accounting for 10% of the entire market share, firmly ranking second in the TVL list and continuing to lead public chains and layer - 2 protocols such as BNB Chain, Arbitrum, and Solana.
It can be said that the TVL data performance of TRON is better than that of most public chains with a higher market capitalization. From this perspective, the price of TRX may be undervalued. This view is also confirmed by the Mcap/TVL data. Taking Ethereum as an example, its Mcap/TVL value is 8.45, while that of TRON 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, the lower the ratio of the market capitalization to the market capitalization of the encrypted assets locked by users in the project. This may mean that the value of the project is underestimated. Comparing the Mcap/TVL ratio data of several major active public chains currently, it can be clearly seen that the Mcap/TVL ratio data of TRON is basically one - tenth of that of other public chains, and the possibility of it being undervalued is very high.
In addition to TVL data, protocol revenue is also a key indicator. Not only in the cryptocurrency field but also in the traditional investment field, revenue has always been an important indicator for judging financial health, financial vitality, and future development potential. According to DefiLlama data, after the daily protocol revenue of the TRON network reached a new high of $1.97 million on February 29, it refreshed the record again on March 5, reaching $2.31 million. Currently, the daily revenue is stable at around $2 million.
The growth of daily protocol 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 further attract more developers and users to join the TRON ecosystem, forming a virtuous cycle, thus indirectly empowering the coin price and potentially having a positive impact on the price trend of TRX.
The Absolute Dominator of Stablecoins
In addition to data such as TVL and protocol revenue, TRON is the absolute leader in the stablecoin field. It can even be said to dominate the stablecoin demand and is the well - deserved king of USDT.
Since October 20, 2023, Tether Treasury has minted more than $13 billion worth of USDT on Ethereum and TRON. This huge amount is not so much an increase in more liquidity but rather a high degree of market recognition of the TRON network in terms of infrastructure, security, and user experience.
Digging deeper into the data, according to The Block Data's statistics, the total supply of stablecoins on the TRON network has reached $52.7 billion, surpassing the Ethereum network and consolidating its strong position in the stablecoin market.
In the overall pattern of the cryptocurrency public chain market previously dominated by Bitcoin and Ethereum, the TRON network has successfully occupied a strong position in the total supply of stablecoins, which can be said to have a relatively strong market competitiveness.
According to Dune data, whether it is the USDT cross - chain reception volume or the USDT cross - chain sending volume, the data of the TRON network are higher than those of other networks, further demonstrating its absolute dominance in the stablecoin trading field.
In the context of our discussion of various RWA or cross - border dollar settlement services, the role of stablecoins cannot be ignored. And all these will help TRON build market competitiveness and influence.
Related Reading: "Redefining Tron: A USDT - Dedicated Chain"
Ultimately, the extensive use of the TRON network not only brings favorable TRX supply dynamics but also, as the network grows, is transformed into continuous fees for the TRX network and a continuous deflationary state of the TRX token, ultimately affecting the price of TRX.
The Surging Waves in the TRON Ecosystem
Based on its unique advantages in stablecoins, the DeFi ecosystem of TRON also presents a colorful picture. Core products represented by Justlend, Sunswap, and stUSDT provide users with diversified financial services covering lending, trading, and RWA and other fields.

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 the TRON DeFi ecosystem. Hundreds of millions of dollars of TUSD were deposited into JustLend at different times. The TVL of Justlend has currently exceeded $7.5 billion, accounting for a major share of the TRON network. Just like the TVL of the TRON network, the TVL of Justlend has also been showing a steady upward trend, and users' trust and participation in its lending services are gradually increasing.
Through the dual effects of low - cost borrowing rates and high - efficiency liquidity, it promotes the prosperity of the entire TRON ecosystem, creates more financial opportunities for TRON users, and enhances the growth of the overall ecosystem's TVL and the healthy operation of liquidity.
Sunswap and stUSDT are also integral parts of the TRON ecosystem. With the advantages of low fees and high security, Sunswap creates a convenient digital asset exchange environment for traders. 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 real assets.
Through the combination of these high - quality projects, not only the boundaries of TRON DeFi are expanded, but the TRON DeFi ecosystem is also enriched, and the growth of the overall ecosystem's TVL and the healthy operation of liquidity are enhanced. TRON not only supports the development of high - quality projects but also reaches multiple strategic partnerships.
Especially in September last year, Google Cloud included TRON in the BigQuery public dataset, providing users with more convenient data query services. And the commercial use of Huawei Cloud's Web3 Node Engine Service NES has injected even more powerful technical support into the TRON ecosystem. This series of cooperation measures has greatly improved the comprehensibility and usability of TRON and provided more opportunities for innovation and cooperation for developers.
On this basis, in order to attract more innovators and developers worldwide to step into the TRON ecosystem, the sixth season of the TRON Hackathon was grandly launched with a total prize of up to $650,000. This is not only an affirmation of past cooperation achievements but also an expectation for future innovation and cooperation, laying a solid foundation for the booming development of the TRON ecosystem.
Such cooperation achievements not only mean that TRON is accelerating the expansion of its influence globally but also that its technical strength in the blockchain field has been recognized again. From an investment perspective, these strategic partnerships provide TRON with a wider range of application scenarios and stronger market recognition globally. This series of recognitions will ultimately feed back into the value of TRX, forming an even stronger value consensus.
Where Will TRON Go in the Future?
The Metaverse Financial Free Port
On June 25, 2018, TRON officially launched its mainnet. As the token separated from Ethereum, TRON would operate completely independently. June 25th was thus called the "Independence Day" by the TRON team. With years of development, TRON has entered a new stage of development and has a new roadmap and development direction.
On June 7 last year, according to relevant sources, Justin Sun said in an internal speech that TRON had formed a three - business model of "public chain + trading platform + stablecoin". In the future, it would focus on the construction of its own ecosystem and the industry, striving towards the "metaverse financial free port".

At the StarkWare Sessions 2023 conference last year, Cuy Sheffield, the head of Visa's cryptocurrency division, said that they were developing a large - value payment and settlement system for Ethereum - based stablecoins. He was also very optimistic about the TRON network, especially regarding the payment data with a daily on - chain payment amount of less than $200. TRON's performance was the most outstanding, which is of great help for the implementation of the "metaverse financial free port" roadmap.
We can imagine that in the future, while building the "metaverse financial free port", TRON will also accelerate its internationalization and compliance pace, continue to promote the prosperous development of the ecosystem, and integrate with various industry tracks, such as education, environmental protection, artificial intelligence, and other fields.
Under the continuous development of these series, the development blueprint of TRON will be more realistic, and it also depicts a more specific and feasible vision for its future growth. More importantly, under such a roadmap, the market capitalization of TRX may, like the former "Independence Day", open up new narrative and growth spaces.
Entering the Bitcoin Layer 2
On February 15, Justin Sun announced his Bitcoin Layer 2 solution and roadmap on his social media.
Obviously, after a new "cooling - off period" of inscriptions, the Bitcoin ecosystem is moving towards a diversified development path. The community's demand for more and more advanced infrastructure is increasing day by day, and the expectations and consensus are also constantly strengthening. Especially in BTCFi ecological tracks including Bitcoin Layer 2, DeFi, and cross - chain tracks.
With the entry of Bitcoin Layer 2 projects such as Merlin and B Square, the market space and prospects of the Bitcoin staking track can be foreseen. For example, Merlin, the current leader of Bitcoin Layer 2, has staked more than $3 billion worth of assets. Apparently, the potential and growth space of the Bitcoin ecosystem are still very large.
TRON users can not only participate in the re - staking plans of more Bitcoin Layer 2 networks but also support the development of the Bitcoin Layer 2 ecosystem through TRON's diversified asset portfolio, providing strong support for the continuous growth of the TRX market capitalization.
After TRON enters the Bitcoin Layer 2, it will promote more stablecoins to enter the Bitcoin ecosystem, unblocking the liquidity and vitality between TRON and Bitcoin.
While enabling the interoperability of TRON tokens (such as USDT, TRX, BTT, etc.) with the Bitcoin network, the market size of Bitcoin Defi and even the market capitalization and potential of the Bitcoin ecosystem may flow into TRON. This move will provide a narrative support for the continued rise of the TRX market capitalization.
TRON Embracing AI
In February last year, Justin Sun posted on social media that TRON would provide a decentralized payment framework for the AI system ChatGPT. The framework covers an on - chain smart contract system, a payment - layer protocol, an underlying call SDK, and an AI payment gateway. With the fast and low - cost transaction characteristics of TRON, developers can easily and securely receive payments for their AI services.
Obviously, with the rapid evolution of digital technology and the booming development of the global artificial intelligence trend, AI has become a key driving force in all walks of life.
Especially in the Web3 era, the combination of blockchain and artificial intelligence is regarded as the future development trend, which will give rise to more innovations and changes. Against this forward - looking background, TRON's active embrace of AI development opportunities has become a remarkable move.

Although in the short term, it is difficult for us to see the real implementation of the combination of blockchain and artificial intelligence, in the hype - driven cryptocurrency industry, we can perhaps imagine that after adding the AI concept, the market capitalization of TRON will usher in a new development period.
From a longer - term perspective, the global AI trend will surely intensify, and the combination of blockchain and artificial intelligence is definitely one of the most certain future development directions. TRON also has the financial strength to promote this direction.
On the one hand, it may improve the execution efficiency of the smart contracts of the TRON system. On the other hand, it can attract more funds and liquidity into TRON, making TRON more competitive in the industry, which is also a long - term positive for the price and market capitalization of TRX.
The Evergreen Tree of Cryptocurrency: TRON Is More Than This
In the long - term cycle changes, many cryptocurrencies have already disappeared with the trend of the times. However, TRX still stands firm, withstanding the test of market bulls and bears and continuously expanding its rich application scenarios.
In addition to making great contributions to the construction of industry infrastructure, Justin Sun, as an OG in the entire cryptocurrency industry, has a prominent influence and leadership in multiple market cycles. 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 the entire industry's TVL is obvious, bringing new confidence and impetus to the entire industry.
In this round of market growth, the success of TRON and TRX is undeniable. The market capitalization and TVL of TRON have been growing all the way, revenue has repeatedly reached 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 solid market consensus on TRON.
At the same time, from various data such as the current Mcap/TVL ratio and community consensus, the value of TRX is obviously underestimated. The confidence of investors and the community in its future development is constantly increasing. With TRON's continuous exploration of new routes and new opportunities, the future potential of TRX will continue to be unlocked.
Obviously, with Justin Sun's influence in the cryptocurrency market, the ambition of TRON must be more than this, and the future of TRX must also be more than this.
The rougher the waves, the more valuable the fish. As the bull market in the entire cryptocurrency market becomes stronger, it is believed that the value of TRX will continue to be discovered, and the consensus will surely become even stronger. Time will be the best witness.