How Justin Sun helped Tron achieve a significant feat in DeFi TVL
- Tron’s market share was 10.21% as the blockchain held on to its second spot below Ethereum.
- Justin Sun’s transfers into lending platform JustLend were cited as the key factor behind the increase.
Layer-1 blockchain Tron [TRX] has taken giant strides in the crypto space in 2023, and the network added another feather to its cap.
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Tron increases DeFi market share
According to popular on-chain sleuth Patrick Scott, Tron’s pie of the total value locked (TVL) on all blockchains went into double digits for the first time in history. At the time of writing, Tron’s market share was 10.21%.
In fact, if liquid staking were to be removed, Tron would account for more than 16% of the TVL.
For the first time yesterday, Tron's share of DeFi TVL passed 10% (including liquid staking).
Excluding liquid staking, @trondao now accounts for over 16% of DeFi TVL.
Tron's recent growth has been driven by deposits into stUSDT, a RWA protocol. pic.twitter.com/9d9T5sRYcH
— Patrick Scott | Dynamo DeFi (@Dynamo_Patrick) September 16, 2023
Tracing Tron’s trajectory since the beginning of 2023 revealed some intriguing findings. In January, Tron’s share was a little over 7% with BNB Chain occupying the second spot with a 10% market share.
However, confronted with regulatory challenges and safety concerns, BNB Chain lost its credibility in subsequent months. Consequently, Tron rose to the second spot after scooping a significant portion of BNB Chain’s share.
Was this the primary reason?
Patrick Scott said that the recent spike in Tron’s TVL was driven by the lending platform JustLend. Data from DeFiLlama highlighted a 22% jump in the USD value of assets deposited on the platform on 16 September.
A separate post by popular journalist Colin Wu pointed out that Tron founder Justin Sun’s transfers involving $815 million in stablecoin TrueUSD [TUSD] led to the spike in JustLend’s TVL.
How much are 1,10,100 TRXs worth today
TRX riding on the bulls
At the time of writing, native token TRX was valued at $0.083, representing a weekly growth rate of 6.5%, per CoinMarketCap. When compared with the last month, the coin was up by 11.8%.
Meanwhile TRX coins continued to exit circulation in order to exert deflationary pressure. About 11.93 million TRX tokens were moved out of circulation on 10 September. Adjusted against newly minted tokens, there was a net decrease in the circulating supply of TRX by 6.86 million.