TRON Network 2023 Dapp Ecosystem Report

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Continued DeFi growth and innovation mark the success of TRON in 2023

Disclaimer: The insights presented in this report are based solely on data from the dapps tracked by DappRadar on TRON, and do not encompass all the transactions conducted on the blockchain as a whole.

The TRON Network 2023 Dapp Ecosystem Report offers a comprehensive analysis of TRON’s performance throughout 2023, highlighting its strategic developments, technological advancements, and significant contributions to the blockchain and decentralized finance (DeFi) sectors.

Key Takeaways

  • TRON had an average of 3,800 daily unique active wallets in 2023.
  • The DeFi category attracted 58% of the activity, while 40% can be addressed to High-Risk dapps. 
  • During 2023 TRON’s DeFi-centric ecosystem grew 88% with a TVL of $8.56 billion, placing it 2nd among all blockchain networks. 
  • TRON network’s native utility token, TRX, rose 97% in the year 2023 amid harsh market conditions.

Table of Contents

  1. What is Tron?
  2. Tron On-Chain Activity Overview
  3. Tron DeFi Ecosystem
  4. Milestones of 2023
  5. Conclusion

1. What is TRON? 

Launched in July 2017 by Justin Sun, TRON stands as a blockchain platform with a profound goal: to decentralize the web and its content. Its mission, “Building a Metaverse Free Port,” embodies the aspiration to forge a digital realm of unbridled exploration, interaction, and transaction, reminiscent of the limitless opportunities the open seas offered to early adventurers. Tron’s overarching vision, “Achieve A Truly Decentralized Globe For All,” revolves around the empowerment of communities, the removal of financial hindrances, and the creation of a supportive environment for individual economic autonomy.

TRON’s inception occurred in Singapore, accompanied by a successful $70 million initial coin offering (ICO) in 2017, just before China’s clampdown on digital tokens. Transitioning from an ERC-20 token on Ethereum’s blockchain, Tron launched its own mainnet in May 2018, a pivotal moment in its journey.

By December 2021, TRON achieved complete decentralization, transitioning into a fully community-governed Decentralized Autonomous Organization (DAO). In this DAO structure, the TRON community elects its preferred blockchain validators, known as Super Representatives, to oversee block transactions and creation. These 27 Super Representatives are instrumental not just in maintaining the network’s operational integrity through block generation and bookkeeping but also in shaping its future through proposals and adjustments to network parameters, such as transaction fees and block reward amounts.

TRON’s infrastructure is meticulously crafted for exceptional throughput, scalability, and reliability, offering an attractive proposition for developers keen on creating decentralized applications (dapps) with demanding performance needs. The network is versatile, supporting a wide array of applications from DeFi to social media, thereby enriching its ecosystem with vibrancy and diversity.

In 2023, TRON further capitalized on its technical prowess, community-driven initiatives, and strategic alliances to propel its mission and vision forward. Now, let’s delve into the on-chain metrics to assess TRON’s performance over the past year.

2. Tron On-Chain Activity Overview

In 2023, the TRON network recorded an average of approximately 3,800 unique active wallets engaging daily. This figure represents a 54% decline compared to the previous year. These interactions stem from the 1,380 dapps on TRON, as cataloged by DappRadar. The term ‘unique active wallets’ specifically refers to wallets interacting with TRON dapps for the first time, rather than indicating a total user count.

A detailed analysis of the distribution of this activity reveals that DeFi commands the largest share with 58%, underscoring TRON’s position as the blockchain with the second-largest Total Value Locked (TVL), trailing only behind Ethereum. This aspect will be explored further in the subsequent section.

The “High-Risk” category also emerges as a notable segment, comprising dapps characterized by limited disclosure or potential red flags in their submission forms. Users are advised to exercise caution when interacting with these dapps.

Transaction-wise, the network saw a total of 5.2 million dapp-related transactions in 2023, marking a 48% decrease from the previous year.

The total transaction volume amounted to $577 million, indicating an average transaction value of $111.

And, looking deeper at a dapp level, these were the top 5 dapps by UAW of 2023 on TRON blockchain. 

It’s critical to recognize that 2023 was a challenging year for the entire blockchain industry, witnessing its longest bear market. However, as 2024 begins, there are emerging signs of recovery. As of January, TRON is ranked fourth, based on the number of dapps integrated, in our blockchain rankings, signaling a positive momentum shift for the network.

3. Tron DeFi Ecosystem

TRON significantly impacts the decentralized finance (DeFi) landscape, holding the position of the second-largest blockchain in terms of Total Value Locked (TVL), trailing only behind Ethereum, with a commanding dominance of over 7%. Currently, TRON’s TVL stands at $8.56 billion, marking an impressive 88% increase since the year’s start.

In addition to its TVL, TRON boasts over $51 billion in stablecoins and has facilitated over $60 billion in transactions across its bridges, securing the second rank in both metrics right after Ethereum. This further underscores TRON’s prominent role in the DeFi sector.

Among the DeFi platforms on TRON, there are 29 protocols in operation, with JustLend leading as the most influential, commanding an 80% dominance. JustLend is a DeFi protocol powered by TRON, designed to create liquidity pools with algorithmically-determined interest rates based on the supply and demand for Tron assets.

The performance of TRON’s native token also plays a crucial role in its TVL dynamics. Despite the broader challenges faced by the crypto market, TRON’s token value has surged by 97% over the past year, showcasing resilience and potential for growth in an otherwise volatile market.

4. Milestones of 2023

The year 2023 was a landmark period for TRON, marked by significant achievements and strategic advancements that further solidified its position in the blockchain ecosystem. Here’s a closer look at the key milestones Tron accomplished throughout the year:

  • Expansion into the Japanese Market: TRON made a strategic move by joining the Japan Crypto Asset Business Association. This membership signifies TRON’s commitment to exploring and expanding its influence within the Japanese market.
  • Network Capability Enhancements: Through strategic integrations with Google Cloud’s BigQuery and Huawei’s Web 3.0 Node Engine Service, TRON significantly enhanced its network capabilities. 
  • Supporting Innovation in the Dominica Metaverse: TRON played a pivotal role in the launch of the Dominica Metaverse Bound Token (DMBT) by DMC Labs, as part of the broader Dominica Metaverse program endorsed by the government of Dominica. 
  • HackaTRON Growth: The HackaTRON initiative witnessed growth in its fourth and fifth seasons. Season 4 engaged over 625 participants across 172 projects, while Season 5 saw an exponential increase to over 3,500 participants and more than 2,000 projects.
  • TRON Builder Tour: The TRON Builder Tour made significant stops in major cities, including Stanford, Princeton, New York City, Los Angeles, Miami, and Barcelona. 
  • Investment in AI and Sustainability: The launch of a $100 million AI Development Fund and the TRON Climate Initiative highlighted TRON’s dedication to integrating artificial intelligence with blockchain technology and its commitment to sustainability. 
  • Recognition and Participation in Major Events: TRON’s active participation in leading industry events such as Consensus 2023, Token2049, and Binance Blockchain Week, and its accolade of “Best Layer 1 of the Year” at Blockchain Life 2023 in Dubai, underscore its prominence and excellence in the blockchain space.

The milestones achieved in 2023 reflect TRON’s relentless pursuit of innovation, its commitment to community empowerment, and its vision for a decentralized future. These achievements not only mark the progress made over the year but also lay a solid foundation for continued growth and success in the years to come.

5. Conclusion

TRON’s achievements in 2023 underscore its prominence in the blockchain and DeFi sectors. Its strategic market expansions, technological enhancements, and notable initiatives like the AI Development Fund highlight TRON’s leadership and innovation. With significant on-chain activities, a substantial role in the DeFi ecosystem, and recognition as “Best Layer 1 of the Year,” TRON demonstrates robust growth and resilience. The increase in its token value and the success of its DeFi platforms, especially JustLend, reflect its strong market position.

As TRON continues to evolve, its commitment to decentralization and technological advancement sets the stage for continued influence and success in the blockchain domain.

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