In a notable turn of events, Tron’s (TRX) blockchain network experienced an unprecedented surge in daily protocol revenue, soaring to an all-time high of $2 million on February 20. This surge coincided with the announcement from Circle, a major stablecoin issuer, regarding its decision to discontinue offering the USD Coin (USDC) on the Tron blockchain.
Tron’s protocol revenue is primarily generated from transaction fees, with TRX tokens being burned as part of the process. On a pivotal day, data from Tronscan revealed that 13 million TRX coins were removed from circulation, indicating heightened network activity.
Circle’s move to halt USDC minting on Tron was driven by a commitment to maintain the stablecoin’s trust, transparency, and security. However, market analysts speculate that the surge in protocol revenue could be attributed to USDC holders rushing to withdraw their stablecoins amidst concerns of a potential de-pegging event.
Following Circle’s announcement, there was a noticeable uptick in the daily count of active addresses on the Tron network. As of February 22, over 2.07 million active accounts engaged in at least one transaction, marking an 8% increase since the USDC discontinuation.
However, despite the spike in active addresses, there has been a slight decline in new demand for the Tron network. Data from Tronscan indicated a 3% drop in wallet and contract accounts with transfer records since February 20, signaling a subtle shift in network adoption trends.
Prior to Circle’s decision, Tron had gained 193,000 new accounts. However, by February 22, this number decreased to 188,000, indicating a slowdown in network growth. Nonetheless, the number of daily active accounts increased, which resulted in a corresponding rise in daily transactions on Tron. Since Circle departed from the chain, a 4% uptick has been observed in daily transactions. As of the latest data from CoinMarketCap, TRX traded at $0.1375, reflecting a marginal decline of 0.87% in the last 24 hours and a modest 0.22% uptick in the preceding week.
The recent upsurge in Tron’s protocol revenue has brought to the forefront the intricacies and interdependencies of network dynamics, market sentiment, and strategic decision-making among key industry players. These factors are instrumental in shaping the evolving landscape of decentralized finance and blockchain ecosystems.
