Messari Releases Q4 2022 State of TRON and State of USDD Reports

Messari recently released its quarterly reports on the State of TRON and the State of USDD for the fourth quarter of 2022.

Messari's first report, State of USDD Q4 2022, showcases the performance of USDD, a stablecoin pegged to the US dollar, managed by the TRON DAO Reserve, and circulating on multiple blockchains, including TRON, Ethereum, and Binance.

The report highlights that USDD saw continued growth in Q4 2022, despite the crypto winter, noting its circulation volume increased from a little over £4 billion to nearly £6 billion USD. This growth was primarily driven by the increasing demand for stablecoins as a haven for investment and cross-border transactions.

The report also mentions the key advantages of USDD, including its stability, low volatility, and ease of use, which have made it an attractive option for individuals and institutions alike.

Highlights from Messari's USDD report:

The number of wallets on TRON holding USDD slowed its growth in Q4, with only an 8% increase. However, matching the 480.4% growth from Q2 to Q3 was not to be expected.

TRX balances in the TRON DAO Reserve remained the same from Q3 to Q4. Not including TRX, the collateral ratio for the stablecoin is below 1 at 0.87. Including TRX in the reserve wallets and deposited in the burn account, the collateral ratio is 1.7.

Although Visa and Mastercard are slamming the brakes on plans to forge new partnerships with crypto firms, that hasn't stopped them from partnering with themselves.

Partnerships with Travala, which now accepts USDD for payment, other developing partnerships for utility in everyday commerce, and its multi-chain circulation all indicate the growing adoption of USDD.

State of TRON

The second and much longer report, "State of TRON Q4 2022," analyses the overall performance of TRON, highlighting that TRON's leadership in the stablecoin space remained steady.

Recently the Commonwealth of Dominica designated TRON the official protocol for its national blockchain infrastructure and approved seven TRON-based cryptocurrencies as legal tender for everyday use in the country, which might have had an effect on the current stability of the currency.

TRON also saw its average active daily addresses increase by 17.9%, with an unusual spike on December 10th of 1.3 million new accounts.

The blockchain company further saw its average daily transactions also increase by 22.4%. What stood out the most, especially in light of the bear market moment, was that total quarterly revenue increased by 25.3%.

The report further highlights the key advantages of TRON, including its scalability, low transaction fees, and user-friendly interface, which could make it an attractive option for developers and entrepreneurs.

Highlights from the TRON report:

About 38% more TRX was burned in December than in October. As of December 31st, TRON nodes were distributed across more than 30 geographic locations around the globe, with 23% (1,330 of the 5,730 TRON nodes) located in China.

Compared to TRON's peer group of pioneering blockchain leaders – Ethereum, Binance, and Polygon – TRON led the way in the percentage of total revenue increase in Q4. It had six times the number of daily transactions compared to Ethereum, two times compared to Polygon and nearly two times compared to Binance.

Although, TRON is behind Ethereum, Polygon and Binance in the number of protocols using its network. It gained 2% of the peer group's stablecoin market share.

In Q4, the £830 million TRON DAO Ecosystem Fund launched TRON DAO Ventures (TDV) and added it to its list of existing investment pathways. An increase in application usage was evident in Q4, as smart contract triggers were up by 45%.

The TRON community of developers continued to grow with three seasons of Hackathons including over 2,300 participants and the launch of TRON Academy with blockchain club partnerships on seven top-tier university campuses.

The report also favourably mentions that TRON joined the Ethereum Enterprise Alliance, suggesting it could catalyse collaboration between the two networks.

TRON's Q4 success might be surprising for most, given that this year was off to a rocky start for many crypto firms, with US regulators even warning banks to be more cautious about crypto contagion risks.