Analyst: Tron Has A More Sustainable Business Model Than Solana, Here’s Why

As a seasoned researcher with a penchant for deciphering the intricacies of blockchain technology and its applications, I find myself increasingly captivated by the trajectory of Tron. My personal journey in this field has allowed me to witness the evolution of various platforms, but none quite as transformative as Tron’s shift from gaming dapps to a dominant force in P2P stablecoin transfers.


One expert’s view suggests that Tron, a well-known smart contract platform often compared to Ethereum in terms of competition, might play a crucial role among the foundational layers (layer-1s) in the cryptocurrency landscape. In his opinion, the Tron platform currently functions predominantly as a transactional layer much like Bitcoin does.

Tron Leads In P2P Stablecoin Transfers

Originally recognized primarily for supporting gaming applications thanks to its impressive scalability and affordable transaction costs, Tron has undergone significant transformation throughout the years. In the opinion of one analyst, Tron assumes a crucial function in providing financial services to the underbanked and economically disadvantaged populations in developing countries when examined on X.

In my analysis, I’ve observed that Tron has been strategically establishing its unique identity by focusing on the seamless handling of trustless peer-to-peer (P2P) transactions. Contrasting with platforms like Solana, Avalanche, and Ethereum, which predominantly emphasize trading and DeFi activities, Tron is carving a distinct niche for itself in this manner.

Through persistence and employing a distinctive strategy, it’s evident that the analyst finds Tron has become the forefront platform for secure stablecoin transactions and cross-border remittances, particularly prominent in developing economies.

This position is because Tron dominates USDT transfers. As of September 18, TronScan data shows that over $61 billion USDT was held on Tron, not Ethereum and its layer-2 solutions.

Analyst: Tron Has A More Sustainable Business Model Than Solana, Here’s Why

Over 95% Of Tron Users Are Not Traders

Furthermore, when referring to Artemis data, the analyst points out that a larger proportion of stablecoin transactions on Ethereum, Ethereum layer-2s, Solana, and other L1 networks is mainly due to trading activities. However, in the case of Tron, the majority of USDT and stablecoin transfers are fueled by P2P transactions rather than trading.

Looking back at the past year, it’s worth noting that a mere 5% of all stablecoin transactions on the Tron network can be traced back to MEV bots – these are automated programs designed to maximize their profit by exploiting transaction order in decentralized or centralized exchanges. As a crypto investor, this statistic suggests that the majority of transactions are made with honest intentions, which is encouraging.

Analyst: Tron Has A More Sustainable Business Model Than Solana, Here’s Why

Approximately 95% of Tron’s USDT and stablecoin transactions in mid-September 2024 were peer-to-peer transfers, according to the analyst’s assessment. Moreover, it was observed that the total volume of Tron’s stablecoins had surpassed $3.3 trillion at this point.

In a comparison between Tron’s stablecoin activity and that of Solana, an analyst noted a significant disparity. The majority of Solana’s stablecoin volumes are primarily driven by trading activities. While this isn’t necessarily unfavorable, it suggests a distinction in the user bases and development approaches taken by the creators of each platform.

Analyst: Tron Has A More Sustainable Business Model Than Solana, Here’s Why

Just last week, Tron collaborated with Tether and TRM Labs to combat financial wrongdoing within their network. By joining forces, they established the T3 Financial Crime Unit aimed at assisting law enforcement agencies in identifying and apprehending individuals who are misusing USDT for illegal activities.

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2024-09-19 08:42