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Staying at the dominant position of stablecoin trading, innovative Bitcoin second layer helps the prosperity and development of the ecosystem
Project Name: TRON
Token: TRX
Current market value: US$11.6 billion
Estimated market value in 6 months: US$15.6 billion
Upward space: 35%
Penta Ten Dimension Rating: 73
Data as of: March 13, 2024
Download the complete research report https://t.me/pentalabio
Official website: pentalab.io
TRON is dominant in the stablecoin online trading market.CoinMarketCap data shows that as of December 31, 2023, the total market value of the global stablecoin market was approximately US$130 billion, accounting for 7% of the total market value of cryptocurrencies.In December 2023, Tether Treasury issued USDT stablecoins of USDT on the Tron blockchain, and the USDT circulating on the TRON chain exceeded 48.8 billion, accounting for 53% of the total USDT circulation, and the number of accounts it holds.Up to 35 million.TRON version of USDT has become a mainstream stablecoin used by users around the world.Not only that, the other two centralized stablecoins circulating on the TRON chain, USDC and TUSD, performed well.At the end of 2023, the TRON version of USDC circulation exceeded US$270 million; while the TRON version of TUSD circulation exceeded US$1.87 billion, accounting for 77% of the total TUSD circulation.TRON’s many stablecoin indicators rank among the forefront of the global blockchain, including the number of weekly active addresses and weekly transaction volume, consolidating TRON’s dominance in the stablecoin field.
Just Network provides a rich financial ecosystem that integrates multiple DeFi protocols.This platform hosts various DeFi protocols in TRON and integrates them highly to form a robust ecosystem that represents the next generation of DeFi solutions.It includes Just Stable based on USDJ stablecoins, lending platform JustLend DAO and cross-chain bridge Just Cryptos.Through stUSDT, Just Network enables support for real-world assets and cooperates with RWA DAO to manage the RWA DAO platform.As of March 13, 2024, TRON’s total locked value (TVL) reached US$25.2 billion, of which JustLend DAO accounted for US$8.1 billion, Just Cryptos accounted for US$796 million, and TRX Staking Governance accounted for US$592 million, totaling TRON’s total TVL37.6% of that.Just Network relies on the high performance of the TRON network, providing low handling fees and a good transaction experience.
TRON is about to launch an innovative Bitcoin Layer 2 solution dedicated to improving interoperability and practicality.This solution aims to connect tokens within the TRON network with the Bitcoin network, and is expected to enable the stablecoin market with a market value of more than US$55 billion to access the Bitcoin network, injecting more financial vitality into Bitcoin.The roadmap of this solution is divided into three stages, including the application of cross-chain technology, cooperation with the Bitcoin Layer 2 protocol, and the Layer 2 solution integrating TRON, BitTorrent (BTTC) and the Bitcoin network.These collaborations will allow TRON users to participate in the restake activities of the major Bitcoin Layer 2 network and support the development of the Bitcoin Layer 2 ecosystem with TRON’s diversified asset portfolio.At the same time, this will retain the advantages of the POS system’s speed and low cost and ensure a combination of POW and UTXO security for BTC L2.
Valuation:We use Total Lock Value (TVL) to value the protocol on the TRON chain and use Total Value Lock (TVL) to measure the value of stablecoins (TVC).On the one hand, since March 2021, the average ratio of circulating market capitalization to TVC has been approximately 1.45 times, while the current ratio is 1.12 times, which is comparable to the historical average.On the other hand, the average ratio of circulating market capitalization to TVC since June 2023 is about 0.13 times, and the current ratio is 0.14 times, which is comparable to the average since June 2023.Currently, TRON’s TVL grows at 130% annually, while TVC’s annually grows at 46%.Assuming growth rates of 50% and 20% in the next six months, we can predict that TVL will reach $15.6 billion and TVC will reach $98.5 billion.Meanwhile, if the current valuation levels are adopted, i.e. 1.12 times and 0.14 times, the market value is expected to be $17.4 billion and $13.8 billion in six months, respectively.Taking the average of both, we get a six-month target market cap of $15.6 billion, about 35% higher than the current market cap.
Key risks:Market competition is intensifying, and Bitcoin’s second-tier development is lower than expected.
