Tron, a Justin Sun-led open source blockchain that emerged in 2018 secures 3rd place in DeFi’s largest blockchain in terms of total value locked (TVL) after BNB Chain and Ethereum. According to DefiLlama statistics, the TVL in Tron’s nine apps has grown by 44% in the last month.
In 2nd place, the TVL of Binance Smart Chain is currently $10.8 billion, whereas in 1st place TVL of Ethereum blockchain is above $93 billion.
In the recent market drop, Tron is the only blockchain with consistent growth across all major networks. Ethereum, Polygon, Solana, Avalanche, BNB Chain, and Fantom have all dropped double digits in value in the last month.
Reasons behind growth of Tron blockchain
The implementation of Tron’s new algorithmic stablecoin, which guarantees double-digit returns, has been the key cause of bullish activity. Unlike Tether’s USDT or Circle’s USDC, Tron’s stablecoin USDD is managed by smart contract algorithms rather than a central authority. The stablecoin’s dollar peg is governed via an arbitrage transaction between USDD and TRX, Tron’s native token.
At any moment, investors can trade one USDD for one TRX. An investor who buys USDD at a discount and later sells TRX tokens on the open market may profit if the USDD price goes down below a dollar peg. Investors should expect annual returns of more than 20% from USDD’s various Tron-based enterprises. Investors on various lending platform like JustLend and SUN platform are getting upto 64% returns for staking Tron stablecoin.
Tron’s architecture and positives
TRON is a decentralised operating system, similar to Ethereum, that was created to aid in the implementation of a decentralised Internet. TRON was founded with the intention of providing ultimate control over content generated by digital content providers. TRON provides a decentralised content distribution platform. It promises to be able to handle up to 2,000 transactions per second, whereas Bitcoin is limited to 6 transactions per second. There are many positive things behind the Tron blockchain for its growth.
TRON’s architecture consists mostly on a decentralised infrastructure that comprises a game system, forecasting, distributed trading, and autonomous gaming. On the data front, Tron users have unrestricted liberated access to upload, share, and distribute the content.
Current statistics
JustLend, a Tron-based lending platform, now provides a USDD interest rate of 23%. JustLend’s TVL increased from $1.79 billion to $2.86 billion in less than a month. According to DefiLlama statistics, Justlend have currently $2.9 Billion in TVL.
Customers can earn up to 64% by staking their USDD-TRX liquidity tokens on the stablecoin platform SUN. Because of the high interest rates, several of these sites have witnessed a large surge in activity.
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