TRON’s Q4 Surge: Market Cap Hits $21.94B with 62% Growth

• TRON’s market cap surged by 62.46% in Q4 2024, reaching $21.94 billion, maintaining an upward trajectory for eight consecutive quarters.
• Staking adoption increased, with the Stake 2.0 mechanism gaining traction, leading to increased staked TRX and resource utilization.
• Despite progress, decentralization challenges persist, with a significant concentration of TRON nodes in certain regions.

TRON’s Q4 2024 performance stood out as TRX’s circulating market cap jumped by 62.46% quarter-over-quarter (QoQ), from $13.51 billion to $21.94 billion, according to the report by Messari.

Messari

That was the eighth consecutive quarter of growth for the cryptocurrency, which saw its market capitalization ranking go up the ladder from ninth to eighth place among large-cap cryptocurrencies, excluding stablecoins. It had a deflationary nature and the TRX was surging in price even as supply fell.

Revenue on the network, fueled by TRX burns from transaction fees, was up 34.81% QoQ at $740.29 million. In terms of TRX, revenue was down 6.59% as prices surged. The daily burn of TRX tokens outpaced minting, setting an annualized deflation rate of 2.59%, underscoring one of the essential qualities in maintaining token scarcity.

Messari

TRON’s Staking Adoption and Resource Dynamics

TRON’s Stake 2.0 mechanism, launched in 2023, continued its strong adoption into Q4 2024, with 22.51 billion TRX staked. This is up 9.47% QoQ, and the total staked TRX was 43.71 billion, up 4.27% QoQ. The latter represents 51% of TRX’s total supply. Stake 2.0 streamlined resource delegation and furthered efficiency to attract more users to the upgraded model.

Messari

Despite these advances, decentralization of the network brought concerns. This is because, while TRON operated with 27 SRs during the period studied, the uptick in SR candidates-up from 419 in Q3 to 423-improved voter diversity. However, centralization remains a risk considering that 20% of TRON nodes are packed in Ireland, raising even more questions with regard to its geographic concentration.

Mixed On-Chain Activity

Q4 use was mixed: Wallet and stablecoin transactions, which comprised 99.33% of all transactions, expanded more than 6% QoQ. Daily transactions surged 7.19%, active addresses grew by 4.61% – indicating overall healthy activity – but new address creation declined by 6.95%, and DeFi dropped a whopping 71.77% due to the decline in SUN token trading activity.

Messari

While more was indeed at stake in the resources, the bandwidth and energy consumption at the core of TRON’s resource model actually decreased QoQ by 8.59% and 24.61%, respectively. While staking and the resource mechanism continue to grow big at TRON, this growth, combined with a much-needed path to decentralization, might be really important to ensure that the latter endures over the longer run.

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