The reason behind the token pump on Tron
In the past week several tokens on the Tron blockchain have increased a 100% price increase, and in the case of the WIN token even 495%. Where does the price increase come from?
Data from Coingecko shows WIN, BTT and TRX are among the top four biggest gainers in the past 7 days. Out of those three, Tron has the smallest gain of 92%. WINk is leading the list with 495%, while BitTorrents BTT is in second place with 160%. Those are impressive results, but what’s happening? It looks like the Tron user base is diving deep into the ecosystem’s DeFi products.
In the past 7 days JustSwap has seen 89.33% increase in its user base, now counting 42,650 active wallets on a weekly basis. At the same time other DeFi products in the Tron ecosystem have seen similar growth. JustLend grew 52% to 8,330 active wallers, JUST added 76% for a total of 5,530 wallets, while Sun increased its user base with almost 79% to 5,000 wallets.
Tron keeps pushing their DeFi products, allowing users to enjoy an annual yield (APY) up to 160% depending on the pool. They named their initiative Tron Century Mining, and it’s supported through Sun, JustLend, and JustSwap. Their first mining cycle will end soon, and a new cycle with more rewards will launch on March 8th. These rewards can be JST, SUN, BTT, TRX, or WIN tokens.
Earning those rewards is only possible when you’re staking the liquidity pool tokens. That means that users first need to acquire for example TRX and WIN, put those tokens in a liquidity pool, and then stake the LP tokens to earn rewards.
With more rewards on the horizon, it sure looks like DeFi is gaining ground on the Tron blockchain. Tron has often been described as a blockchain for gambling projects, and it’s good to see their ecosystem taking more serious forms through DeFi applications.
As always the Tron Foundation is good at creating value for their own projects, which includes BitTorrent. Tron Foundation’s Justin Sun doesn’t only create DeFi dapps carrying his name, but also acquired BitTorrent back in July 2018. That’s why TRX and BTT are currently among the most valuable products in the Tron ecosystem.
DeFi keeps growing
The DeFi ecosystem keeps growing despite the high gas fees on Ethereum. Thanks to the value increase of ETH the ecosystem now has a TVL of more than $60 billion. At the same time Binance Smart Chain taking over on key metrics like transaction volumes and active wallets.
- Dapp Industry Report Q1 2021
- Live DeFi Overview on DappRadar
- See your own DeFi portfolio on Ethereum and Binance Smart Chain