Tron posted revenue of $48 million in Q4 2022: Research

Tron posted revenue of $48 million in Q4 2022: Research

According to data from Messari, the decentralized digital platform – Tron – achieved revenue of $47.9 million in the last quarter of 2022, an increase of 25% compared to the third quarter.

The company also saw an increase in average daily active addresses and average daily transactions.

Better results despite the FTX collapse

In his latest study, Messari noted that 2022 was a “rollercoaster” year for the cryptocurrency sector. Unfavorable macroeconomic conditions took their toll in the early months, while the Terra crash in the spring compounded the problems. The failure of the once prominent FTX added to the drama, causing a market crash and undermining the industry's reputation.

Despite all these negative events, Q4 was quite successful for Tron. The Justin Sun-led platform generated nearly $48 million in revenue in the period, up 25% from the third quarter. The second quarter of 2022 remains the most productive with a profit of $48.5 million.

Tron also saw more new users and growth in network activity. Average daily active addresses increased from 2.6 million in the third quarter to 3.1 million in the fourth quarter, while average daily transactions reached 6.5 million (compared to 5.3 million in the previous period). Average transactions per second increased to 76 (62 in Q3) and transaction fees remained at $0.08.

The platform implemented several upgrades to improve functionality and user experience and collaborated with the DeFi, GameFi and NFT sectors to diversify its investment strategy.

“Community building efforts were also widespread with Grand Hackathon Season 3 and TRON joining the Enterprise Ethereum Alliance,” Messari added.

User activity in Q4 may have been triggered by the “recovery contract”. coloredbetween Tron and FTX. The partners planned to launch a special facility that would allow holders of TRX, BTT, JST, SUN and HT to exchange assets from the bankrupt exchange to external wallets on a 1:1 basis. Once FTX’s insolvency was detected, Tron users may have transferred tokens “to seek refuge in USDT.”

It's also worth noting that Tron burned over 800 million worth of TRX out of its 92 billion circulating supply in the fourth quarter, up almost 40% from the previous quarter.

Stablecoin landscape

USDT regained its dominance on Tron in the fourth quarter, which “correlates with all on-chain USDT contract activity.” Its dominance plummeted to 87% in the third quarter, triggered by increased transactions in USDC. However, at the end of 2022, USDT dominance rose back to 94%.

USDD – the stablecoin issued by Tron – was undercollateralized as Bitcoin's USD value fell due to the demise of FTX and subsequent market volatility. The token, whose value is pegged 1:1 to the US dollar, fell to $0.97 a day before the exchange went bankrupt, but recovered back to parity fairly quickly.

The supply of USDD in Q4 remained the same as in Q3, while the number of wallets holding portions of the stablecoin increased by 8%.

USDD holders increased to around 130,000 by the end of December 2022. On the other hand, the average size of holdings fell from $315,000 in May to less than $10,000 in the fourth quarter.

Justin Sun’s “ambitious goal”

Tron's founder recentlycalledIts main goal is for TRX to serve as legal tender in five different countries by the end of 2023. As he explained this, he raised the flags of Sint Maarten and Dominica to indicate that they could start the trend.

The government of Dominica has partnered with Huobi (a crypto exchange where Sun is a member of the Global Advisory Board) to launch a national token on the Tron blockchain.

Rolando Brison - a top politician in Sint Maarten - said local authorities have already taken the first steps to declare TRX an official payment method.

Sun went further, raising hopes that his home country - China - could find its place on the list. Recall that Chinese lawmakers banned all cryptocurrency activities in 2021.

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