Why TRON is Surging as a DeFi Powerhouse

The decentralized finance (DeFi) landscape is seeing a significant surge in growth right now.

While Ethereum was the dominant DeFi player in previous cycles, the landscape is now characterized by a proliferation of Layer 1 (L1) and Layer 2 (L2) solutions, which has transformed DeFi from a handful of decentralized applications (dApps) on a single chain into a robust, multi-chain ecosystem.

In particular, there's one chain making huge waves in DeFi right now: Tron.

Emerging Chains in the DeFi Space

Emerging Layer 1 (L1) and Layer 2 (L2) solutions are gaining traction in 2024.

In particular, Solana and Base are making significant strides in the DeFi space, driven by their user-friendly interfaces, low gas fees, and swift transaction processing. Recent data illustrates notable spikes in total value locked (TVL) and token volume across both chains:

Solana reached a 2024 peak on August 4th, with a TVL of $3.81 billion and a token volume of $5.26 billion USD:

Base similarly peaked on August 4th, recording a TVL of $1.23 billion and token volume of $1.24 billion USD:

While Solana and Base are capturing much of the attention, other chains are also experiencing notable increases in DeFi activity. Among them, Tron is emerging as a significant player.

Let's dive into why Tron is an increasingly prominent blockchain in the DeFi ecosystem.

Tron: A Comprehensive Overview

So, why is Tron suddenly making strides?

Tron's appeal lies in its low transaction fees, making it an attractive option for developers and users seeking cost-effective blockchain solutions.

Founded in 2017 by Justin Sun, Tron was built with a focus on high throughput and scalability. Its ability to handle up to 2,000 transactions per second (TPS) significantly surpasses Bitcoin and Ethereum.

Tron's Key Technical Features:

1. Native Cryptocurrency: TRX (Tronix) serves as the network's native token, facilitating transaction fee payments and enabling users to participate in network governance.
2. Consensus Mechanism: Tron employs a Delegated Proof of Stake (DPoS) consensus algorithm. This approach delegates network security and transaction validation to a select group of elected nodes, making the network more energy-efficient than Proof of Work (PoW) systems.
3. Transaction Capacity: Up to 2,000 transactions per second (TPS), surpassing Bitcoin and Ethereum's current mainnet capabilities.
4. Cost-Efficiency: Significantly lower transaction fees compared to many competitors.

Combined, these features ensure Tron is an increasingly attractive home for DeFi development and usage.

Tron’s DeFi Resurgence In 2024

While Tron's current TVL hasn't yet reached its 2022 peak, the summer of 2024 has seen a substantial increase in both volume and transaction count.

Notably, transaction counts spiked on June 10th, reaching approximately 11.95 million, with daily volume ranging from $20 million to $40 million.

What stands out is the increase in transactions, with a large spike on June 10th totaling about 11.95 million transactions, with about $20-40 million volume per day.

On August 19th, Tron topped the DeFi revenue charts with a total of $1.52 Million, outperforming Solana and Ethereum.

What’s Driving Tron's DeFi Surge?

Tron capitalized on the super active and vocal Solana community, who have bridged over funds to the chain. New protocols and dApps have made Tron more usable and a better narrative play since the previous cycle. In addition, Justin Sun has been a major player in the space, pushing for Defi to get the community to give Tron a try and bring over users.

In summary, Tron’s recent DeFi growth can be attributed to several factors:

• Community Engagement: Tron has successfully leveraged the active Solana community, encouraging users to bridge funds to its network.
• Ecosystem Development: Since the previous cycle, the introduction of new protocols and dApps has enhanced Tron's usability and narrative appeal.
• Strategic Leadership: Justin Sun's prominent role in the cryptocurrency space has been instrumental in promoting DeFi adoption on the Tron network.

How To Start Building On Tron

For web3 developers looking to explore the Tron ecosystem, consider the following tools from QuickNode and others:

Real-Time Data Pipelines

Streams from QuickNode is a data streaming solution designed for web3 applications and DeFi developers.

Streams, combined with Functions, create a powerful blockchain ETL solution capable enough to process web3 data with the efficiency and speed developers are used to in web2.

Starting today, Streams now supports Tron, so there's never been a better time or better way to get real-time guaranteed data for Tron developers!

See for yourself by getting started with Streams, for free, in seconds.

Wallet Integration

For developers and users alike, the first step to get started with any chain is setting up a wallet.

TronLink is a great choice, offering compatibility with both mobile devices and browser extensions.

Cross-Chain Functionality

To start building on Tron, bridging funds from other chains is straightforward with Simple Swap.

Trading Analysis

For those interested in trading, staying on top of any new emerging coin, and analysis, Dextools is a must-have tool that's fully compatible with Tron.

Decentralized Exchange

SunSwap is a decentralized exchange (DEX) on the Tron blockchain, offering low-fee trading for TRC20 tokens, liquidity pools, token swaps, and yield farming options, all within a user-friendly interface.

Yield Farming and Liquidity Provision

For a unique DeFi experience, explore SunPump.meme, a platform that combines meme culture with serious financial strategies, focusing on yield farming and liquidity provision.

What's Next For Tron?

As the DeFi landscape continues to evolve, developers should remain cognizant of emerging platforms like Tron. Its technical capabilities, growing ecosystem, and increasing adoption make it a noteworthy contender in the multi-chain DeFi space.

By leveraging the tools and resources outlined above, as well as QuickNode's developer platform, developers can effectively explore and capitalize on the opportunities presented by Tron's expanding DeFi ecosystem.

Get Real-Time Data for Tron with Streams — Now for Free

We’re excited to see what our community of Tron developers can dream up with the power of Streams and Functions — now for free!

Get started today, and let us know what you think of free Streams and Functions on our socials. 

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About QuickNode

QuickNode is building infrastructure to support the future of Web3. Since 2017, we've worked with hundreds of developers and companies, helping scale dApps and providing high-performance access to 30+ blockchains. Subscribe to our newsletter for more content like this, and stay in the loop with what's happening in web3!