Tron Surpasses Ethereum In Daily Active Addresses; Here’s How

The blockchain-based decentralized application (dApp) platform, Tron, has been recording a rapid activity surge for some time. Hence, it now has more daily active addresses (DAA) than Ethereum. The DAA metric calculates the number of wallets that send and receive tokens in a blockchain.

Tron’s DAA Explodes

Alex Wacy, a decentralized finance (DeFi) expert, recently published intriguing metrics about Tron’s burgeoning ecosystem. According to the Token Terminal data (an on-chain analytics platform), the Tron network has over 1.9 million Daily Active Addresses (DAA), higher and almost double BNB Chain’s 915,000.

With 320,000 and 301,000 DAA, respectively, Ethereum and Polygon trail behind Tron, while Bitcoin, the pioneer blockchain, is still stable at 570,000 DAA. The recent surge indicates a remarkable scenario, with Tron projected to generate 200,000 new addresses daily.

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Further evaluation of Tron’s metrics reveals 188 million distinct accounts, collectively completing 6.5 billion daily transactions. Wacy believes the recent rise in Tron’s DAA volume is due to the network’s pivotal role in stablecoin transactions.

Data also shows that approximately $45 billion in stablecoins are securely stored within the Tron ecosystem by the TRC-20 standard. Tron’s robust platform manages half of all USDT transactions, confirming its importance in the digital finance ecosystem.

Rising DAA Amid Market Volatility

It is worth noting that Tron’s DAA has significantly increased amid the wild price fluctuations, slow on-chain activities, and other challenges plaguing the cryptocurrency industry.

Per data from DeFiLlama, the Total Value Locked (TVL) in DeFi is currently just under the $40 billion mark. This figure is significantly lower than the $173 billion recorded at the peak of the crypto market price upswing in late 2021.

This decline in TVL highlights the current state of the DeFi sector, prompting renewed investor interest in projects like Tron that are defying the negative market trend. The network’s robust DAA performance suggests a growing user base and improved engagement within its ecosystem.

This represents a good sign for the blockchain platform, which has continued to evolve and attract participants even as the broader market’s trend remains uncertain.

Preferences For Legacy Blockchains

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As the crypto landscape continues to evolve, third-generation platforms are outpacing established networks like Bitcoin and Ethereum in terms of transaction efficiency and cost-effectiveness. According to the DAA metrics, innovative platforms like BNB Chain, Tron, and NEAR Protocol are recording an unprecedented spike in new user adoption.

Even though Bitcoin (BTC) and Ethereum (ETH) have lower DAA engagement, they remain the top choices for blockchain enthusiasts. For instance, Bitcoin lacks native smart contract capacities.

However, new protocols such as Rootstock now provide this functionality for the Bitcoin network. In addition, Bitcoin’s widespread adoption and access on several exchanges have cemented its position as the market leader, with millions of dollars worth of BTC transactions occurring daily.

Nevertheless, Ethereum has a higher activity density than Bitcoin, particularly regarding transfers and smart contract execution. According to CryptoFees’ latest data, Ethereum generated over $2 million in fees in the last day, twice more than that of Bitcoin.

While legacy platforms promise scalability and cost efficiency, Bitcoin’s status as an industry pioneer and its ease of use contribute to its continued prominence. Ethereum is still a prominent player in the blockchain space thanks to its robust smart contract functionalities, which drive significant user engagement.

Author: Owen Clark

Owen Clark, a seasoned crypto newsman and broker, deciphers the intricacies of the digital currency realm, empowering investors with his astute analysis and actionable insights.

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