While Bitcoin (BTC) has been on an impressive bull run over the last few months, the world’s biggest crypto’s annual return on investment (ROI) currently stands at -35%. Yes, that is negative 35%, despite all the recent glory and attention. All the other cryptocurrencies in the current top 20 list, with one exception, joined BTC in delivering negative yearly returns. The only big-cap crypto that defied the trend and delivered positive returns is Tron (TRX). Let’s take a closer look at this market-defying top performer.
Tron (TRX) - A Leading DApp Platform
Tron (TRX) is one of the earliest blockchain projects that set out to compete with Ethereum (ETH). Originally launched as an Ethereum app, it then transitioned to its own blockchain, and is now home to a thriving variety of decentralized apps (DApps).
The Tron chain supports smart contracts and, as stated by the project’s team, aims to decentralize the Web. Tron is used to host DApps in areas such as games, gambling, decentralized finance (DeFi), and NFT, among others. Tron has a particular strength in the entertainment and gambling DApp niches. The platform was launched as an Ethereum DApp in 2017 but migrated to its own blockchain platform a year later.
Tron is a fast and scalable network with a reported maximum throughput capacity of 2,000 transactions per second (TPS). The blockchain is home to a thriving variety of DApps and DeFi protocols.
According to the leading DApp data aggregator portal DAppRadar.com, Tron is the 4th largest chain by number of DApps, behind Ethereum, Binance Chain (BNB), and Polygon (MATIC) only. There are currently 1,362 functioning DApps on Tron.
Tron’s Cryptocurrency and Its Trend-Defying Positive ROI
Tron’s native crypto coin, TRX, has a total supply of around 91 billion, of which the entire amount is in circulation. The platform’s rules do not specify any maximum supply limitation.
At the time of writing, TRX has a market cap of $6 billion USD and occupies the 16th position in the ranking of cryptocurrencies by market cap.
TRX is the only crypto in the top 20 list that has delivered a positive yearly ROI. Although the coin’s yearly return of 3.3% looks modest, it compares very favourably to Bitcoin’s less than inspiring yearly ROI of -35% or Ethereum’s even shabbier figure of -44%.
Tron has often been regarded as a member of the group of cryptos dubbed “Ethereum killers”. These are native cryptocurrencies of blockchain networks that started out with the key goal of achieving technical superiority over the Ethereum blockchain. Besides Tron, notable members of this gang include Solana (SOL), Cardano (ADA), Polkadot (DOT), and Avalanche (AVAX).
All these coins performed worse than TRX on a yearly basis, and all have posted negative returns that were worse than Bitcoin’s or Ethereum’s figures. The table below shows the yearly growth rates for BTC, ETH, TRX, and the four “Ethereum killer” coins.
The table indicates one thing very clearly – if you are a crypto trader and have held the bulk of your funds in TRX since early 2022, you have avoided the worst of the crypto market rout. While a 3% ROI is nothing to write home about, it is definitely better than losing 35% of your investment by holding your funds in Bitcoin.
Why Has TRX Outperformed the Market So Decisively?
A number of factors, both significant and relatively minor, have cumulatively contributed to TRX’s market-defying performance over the last year. There is no single “killer” factor that lifted the coin above the market. The main contributing factors have been:
1. Tron has very cheap transaction costs (on average, small fractions of a cent) and quite fast execution times. Both of these factors, and particularly the laughably miniscule costs of transacting, have contributed to the growth in the platform’s popularity.
2. Tron has traditionally positioned itself as a welcoming platform for gambling, gaming, and entertainment DApps. These segments are growing fast in the world of crypto.
3. Despite its relatively solid age for a crypto coin, Tron has always stayed in the shadow of the other “Ethereum killer” platforms. The likes of Solana, Cardano, and Avalanche were absolutely buzzing online soon after launch. With the celebrity-like hype came speculative investment that seems not to be paying off. Tron, on the other hand, has always kept a lower profile and never attracted a significant share of hype- and speculation-driven crypto investment.
4. As of lately, Tron has been getting more popular for stablecoin transactions. This is a massive and critical segment of the crypto industry.
Tron’s History and Leadership
Tron is owned by the Tron Foundation, which was registered in Singapore in 2017. Tron was first launched on Ethereum in September 2017. It made a transition to its own blockchain between May and June 2018.
In July 2018, Tron acquired a popular peer-to-peer file sharing platform, BitTorrent, in order to expand its capacity in the decentralized storage niche.
Tron’s founder and CEO is Justin Sun, a well-known blockchain entrepreneur. Only 32 years of age, Sun, who is of Chinese origin but resides and holds citizenship in Grenada, is his adopted country’s Permanent Representative to the World Trade Organization. He is among the most recognised young leaders in the crypto industry.