Analysts at the crypto analytics platform CryptoQuant have released a Tron network review, outlining how the ecosystem grew from a Tether (USDT) “powerhouse” to a decentralized finance (DeFi) hub in 2024.

According to the report shared with CryptoPotato, Tron experienced the diversification of its on-chain activity, evolving from just a network with dominant USDT activity to one with significant decentralized trading and meme coin creation. Tron saw the launch of several applications, like the decentralized exchange SunSwap and meme coin launchpad SunPump, which fostered its growth in the DeFi space.

Tron as a USDT Powerhouse

Over the years, USDT has dominated token transfers on the Tron network. Transactions involving the stablecoin have accounted for 95%-99% of total daily transfers, making USDT the most transferred token on the network.

In 2024, USDT transfer activity on Tron saw significant growth, with total supply growing from $48 billion to $62 billion. The value transferred rose from $362 billion in December 2023 to $576 billion in December 2024, with the number of monthly transfers increasing from 55 million to 62 million.

“It is worth noting that TRON, in collaboration with Tether and TRM Labs, fights cryptocurrency-related financial crime and reach the milestone by freezing more than $100 million in criminal assets globally,” CryptoQuant stated.

Evolving Into a DeFi Hub

As USDT transactions spiked on Tron, so did the network’s DeFi activity. Platforms like SunSwap, which allows users to swap their TRC-20 tokens without intermediaries, became a key driver of economic activity and user engagement on the network.

SunSwap witnessed a sharp rise in usage, recording four million monthly transactions in August 2024. On the other hand, SunPump fostered an uptick in the creation and trading of meme coins on Tron. Following its launch, daily created tokens on SunPump totaled 7,500 by August 20; however, by December, the tokens had ballooned to 94,000.

“The ease of creating meme coins through SunPump amplified speculative activity and user engagement, showcasing the growing demand for creative and community-driven token projects,” CryptoQuant explained.

In addition, Tron witnessed the emergence of other tokens, particularly WTRX, the wrapped version of the network’s native asset TRX. WTRX accounted for 80% of all swaps on SunSwap throughout the year, and the token’s swap volume grew from $0.5 billion to $4.1 billion.

The overall growth in Tron’s network activity led to a spike in its monthly network fees from $102 million at the end of 2023 to $236 million in December 2024.