Tron [TRX] Q1 report: DeFi expands, transactions reach 7 million, and more

• Tron saw growth in some of its key ecosystem metrics in Q1 2023.
• The network’s revenue also experienced a jump.

A new report from Messari revealed that leading blockchain Tron [TRX], home to over 1300 decentralized applications (dApps), saw growth and some corresponding minor declines in Q1 2023. 

Realistic or not, here’s TRX’s market cap in BTC’s terms

Titled “State of Tron Q1 2023,” the on-chain analytics firm found that general bullishness that marked the first 90 days of the year, resulting in a positive performance of some of Tron’s key growth metrics.

During the 3-month period under review, the count of average daily transactions on the open-sourced blockchain network grew by 7.7%, growing from 6.5 million in Q4 2022 to over 7 million by the end of Q1 2023. 

According to Messari, the increase in daily transactions was due partly to Tron’s expansion of its decentralized finance (DeFi) services, to include “liquid staking and a decentralized resource marketplace.” As a result of this, the total transactions count on the network’s staking activity surged by 197% QoQ. 

Another area where Tron excelled in Q1 2023 was the network’s transaction fees. During the 90-day period, “the average transaction fee in TRX and USD was up 59.2% and 80.2%, respectively,” Messari found. 

As the network’s transaction fee climbed, its revenue increased as well. With total quarterly revenue of $90.04 million recorded in Q1 2023, Tron experienced a 88% jump from its Q4 2022 revenue of $47.96 million.

According to Messari:

“The Dynamic Energy Model and increased requirements for Energy resulted in greater revenue generation in TRX (total transaction fees paid in TRX), which increased by 65.5% QoQ (+87.7% in USD). Simultaneously, the circulating market cap of TRX increased by 18.1% QoQ.”

As for the DeFi landscape on the blockchain network, along with the rest of the market, Tron’s Total Value Locked (TVL) denominated in USD grew by 19%. This closed the quarter at $5.4 billion. However, the network’s TVL, denominated in its governance token TRX fell by 0.5%.

This, according to Messari, suggested: “an asset price increase in USD drove TVL rather than new capital inflow.”

How much are 1, 10, or 100 TRX worth today?

TRX in Q1 and in the present

In the year’s first quarter, the circulating market capitalization of TRX increased by 18.1%. 

“For perspective, the circulating market cap of TRX was 23x the annualized revenue in USD at the end of Q4 2022 versus 13x at the end of Q1 2023. The movement suggests a more favorable valuation,” Messari added.

Price-wise, the coin’s value jumped by 28% in Q1. Exchanging hands at $0.0693 at press time, TRX has merely logged a 5% rally in its price in Q2 2023.