TRON announced the latest release of its side chain solution—Sun Network. The upgrade promises “unlimited scaling capacity,” similar to the optimism around Lightning Network for Bitcoin. Yet, the data suggests these bold claims could be more marketing-speak than anything else.
On Aug. 11, TRON announced a new version for the Sun Network, a scaling solution that would expand the network’s transaction capacity. The upgrade incorporates a series of scaling upgrades, such as “DAppChain,” which the TRON Foundation claims will improve the transactions-per-second (TPS) for smart contracts while lowering transaction fees. The upgrade also includes a cross-chain communication feature.
DAppChain would allegedly provide “unlimited scaling capacity” for the TRON MainNet, allowing dApps to run with “lower energy consumption, higher security, and greater efficiency on TRON.” According to TRON and BitTorrent CEO Justin Sun:
“Sun Network will contribute to a more active ecosystem of TRON… In addition, a series of scaling projects such as DAppChain and cross-chain communications will further expand the overall capacity of the TRON network, as well as improving the TPS and smart contract execution efficiency on TRON.”
In addition to the claims around Sun Network, Justin Sun also promotes several selected metrics for TRON:
“TRON’s total account number reached 3,000,000. A total of 410 million secure transactions took place since the MainNet launch.”
Considering how often these metrics are used to promote TRON and the Sun Network it’s important to look at the hard data.
Evaluating TRON based on the numbers
For marketing purposes, Justin Sun and the TRON Foundation have a history of making comparisons to the leading smart contract protocol, Ethereum. Consequently, it’s important to take an objective look at a few important metrics to objectively evaluate these claims.
In terms of total transactions, EOS is by far in the lead—recording 4.5 million daily transactions. This is followed by TRON at 2.8 million. Finally, Ethereum comes in last with just 710,000 transactions.
Looking at this chart alone, an investor may think that TRON and EOS are superior networks because they have larger transactions counts. This, however, isn’t the full picture.
Both TRON and EOS offer free, near-free, and subsidized transactions, especially for end-users. Meanwhile, the median Ethereum transaction fee costs about $0.05. As a result, it’s expected that lower transaction costs translate into a larger number of transactions (though this raises the risk of network resources being abused for low-value purposes).
One metric that is supposedly effective at estimating the value of a payments network (not a smart contract network) is the dollar value of transactions conducted over that network. This is one measure by which Bitcoin advocates compare different payment-focused cryptocurrencies such as Litecoin, Monero, and Zcash.
Using this metric, Ethereum is clearly in the lead. The pioneer smart contract platform recently clocked-in $229 million in 24-hour blockchain-transacted dollar value. For comparison, EOS and TRON had $40 million and $8 million in value transferred over their networks.
To clarify, this metric only counts transactions that move on-chain. On-exchange volume, where coins do not actually move on the blockchain, are intentionally not counted in this metric.
When looking at these values, Ethereum has 28 times the value transferred over its network compared to TRON, even with the much higher transaction costs. This suggests that as a payment network, ETH dwarfs TRX.
The final metric is not total addresses, as Sun would suggest, but daily active addresses, a measure of the number of addresses which sent or received a transaction in the last 24-hours.
Based on this metric, Ethereum has consistently outperformed the other two networks in daily active addresses, reporting 293,000 active addresses most recently. Comparatively, EOS and TRON had 35,000 and 175,000.
This number may be a better gauge for how many individuals are using each network. That said, here it seems the TRON network is fairly active relative to the project’s size and market capitalization. This could potentially be attributed to TRON’s relatively strong dApp ecosystem, with highly popular TRX gambling dApps, like TronBet, potentially pushing up active user counts.
Will the Sun Network make a difference?
In July 2018, Justin Sun boasted that the TRON network is 80 times faster than Ethereum, implying a network speed of 1,200 TPS. In June, TRON claimed to have a TPS of 2,000. These figures would give TRON a network capacity of approximately 100 to
Meanwhile, at its peak, the TRON network was using conducting less than 6 million transactions in a 24-hour interval—just 6 percent of the network’s maximum capacity. This could mean the additional TPS from the Sun Network may go largely unused, although it could make more resource-intensive applications possible.
Most would also agree that lower fees are better for the adoption of a blockchain network. And, they are, in terms of stimulating usage.
But, the TRON network already charges near-zero fees for most users. Although, there are fees associated with bandwidth usage and other types of computer resources, but projects can also earn credits for these resources for free by locking-up TRX.
This kind of resource allocation is similar to how EOS.IO is set up, where users are not required to pay for transaction fees under a certain threshold. By centralizing computer resource providers to a few dozen super representatives (or block producers in EOS’s case), both of these blockchain protocols are able to achieve higher levels of transaction throughput at the cost of decentralization.
Arguably, one of the best metrics for evaluating the efficacy of an open-source smart contract platform is the number of monthly active developers it can attract and retain, suggests Electric Capital.
Here, both EOS and TRON have tiny developer communities compared to Ethereum. Ethereum has over 1,200 monthly active developers working on its main code repository compared to EOS’s 225 and TRON’s 65.
Overall, it seems that the metrics the TRON Foundation selects and presents, along with its protocol upgrades, are—as expected—more marketing hype than anything else. Ethereum is still clearly in the lead in terms of active development and industry adoption based on observable numbers, as much as Justin Sun would like investors to think otherwise.
Evaluating the metrics
In terms of total transactions, it’s unlikely that Ethereum will outperform more centralized systems like TRON and EOS, which can drive down costs by centralizing computer resources— even with sharding—by nature of how distributed networks are bottlenecked by the number of participating nodes.
Yet, it seems disingenuous to claim TRON is outperforming Ethereum, especially when the metrics appear cherry-picked to push the pro-TRX narrative. Justin Sun himself has even admitted—and apologized for—using “vulgar hype and marketing behavior” and utilizing “marketing gimmicks” in a letter meant for his Chinese audience.
Back to the Sun Network, the upgrade seems unlikely to live up to its hype of “unlimited scaling.” Even if it could bring about unlimited transaction throughput, the metric is largely irrelevant if there aren’t enough users and developers on the network.
Recently, the Tron CEO promised to limit the “overmarketing” of Tron in a now-deleted apology.
Unsurprisingly, Sun is back to relentlessly marketing Tron platform with his latest tweet claiming that his first priority is to get Tron back into the top 10 on CoinMarketCap and BitTorrent into the top 30.
TRON price prediction: Teasing head-and-shoulders breakdown
- The No. 13 cryptocurrency finds buyers again ahead of 0.01380.
- Recovery appears shallow amid weakness across the crypto space.
TRON (TRX/USD) stalled its overnight decline and jumped sharply from daily lows of 0.01380 in Sunday’s early trading. However, sellers continued to lurk just below the 0.01410 handle, leaving the coin side-lined over the last few hours. The world’s thirteenth most widely traded digital asset, currently, trades close to the 0.01400 level, in absence of weekend love across the crypto space. The spot is down almost 4% over the last 24 hours, with a market capitalization of $ 929 million.
TRX/USD daily chart
Despite the recovery attempts, TRX/USD remains exposed to further downside risks, as the price teases a head-and-shoulders (H&S) breakdown, as spotted on the daily sticks. Should the bears regain poise, the cryptocurrency will test the pattern neckline once again, now placed at 0.01317. A daily close below the last will confirm the H&S formation (bearish reversal pattern), paving way
Meanwhile, the recoveries will continue to lack substantial follow-through as long as TRON remains below the bearish 21-DMA at 0.01485. If the bulls manage to overcome the 21-DMA hurdle, the horizontal 100-DMA at 0.01629 will be a tough nut to crack.
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Tron News Today – Top Headline for Tron TRX December 14th, 2019
- Massive TRX order via BitMex exchange
- Scammers impersonating Justin Sun following USDT growth
- Binance U.S assessing TRON’S TRX
Tron recently received a large order via the BitMex exchange platform. The order volume was 8,314,848 trades, which has been traded on the 4-hour candle. This is a new height for the coin after hitting its largest order on November 22nd, though the order came as a result of a sell-side. Before this, the biggest buy order of that volume occurred on 15th August, this is most likely a once in a while situation for the coin.
TRON (TRX) Price Today – TRX / USD
Tron Price Analysis – since Thursday, the price of the coin has been trying to pull out from the Lows and the 0.01420 is currently the new resistance level in the way of a higher move. Away from this price, the next resistance is likely to be 0.01492 on the way up.
Tether (USDT) has reached an outstanding firmness in the digital sphere with a Tether (USDT). A Tether (USDT) is a cryptocurrency processing on blockchain mechanism distributed on TRON (TRX) network, has accomplished remarkable constancy in the digital space with an enormous 916 million stable coins inflow. According to several predictions that TRON based USDT may get substantial recognition taking over a quarter of all distributed
USDT, although created to provide steadiness and precision during the transaction, its influence in the digital space has advanced as there are several other factors in Bitcoin (BTC) price discovery. The overall volume of USDT has been at an incessant value of 4,108,044,456 coins, but its configuration on other blockchain networks differs.
Scammers Impersonating Justin Sun following USDT Growth
The recent growth in USDT has opened doors for new scams. An announcement was made by TRON Europe on December 12th, 2019 warning the general public to be conscious of fake USDT since impersonators of Justin Sun, CEO of Tether foundations has been promoting such fake USDT and selling them to inexperienced buyers and in some cases going as far as seeking for a partnership deal.
Binance U.S Assessing TRON’S TRX
Binance U.S would be testing TRX for listing, though it is not yet guaranteed it will be on asset add-on. TRON, its prospect of getting centralized has summoned several criticisms, despite that the network is relatively legendary for gambling distributed apps. The asset runs on TRON network resources to develop rewards that can be sold on the open market.
TRON’s founder account on Weibo blocked, TRX/USD feels the pain
- The “Chinese Twitter” blocked the account of Justin Sun.
- TRX/USD has been on retreat following the news.
Chinese social media network Weibo, which is often called “Twitter for China,” blocked the account of TRON’s founder Justin Sun.
Dovey Wan, a founding partner of Primitive Ventures, wrote on Twitter:
BREAKING and FINALLY … @justinsuntron ‘s Weibo (Chinese Twitter) account is now officially SHUT DOWN. totally not surprised given how loud he has been on Weibo even after the Buffet Lunch/kidney stone drama…
Notably, Sun is known for his controversial marketing tactics that are often criticized both in China and around the globe.
Sun stayed calm and encouraged TRX holders todo the same. He assured TRON users that he would resolve the issue with Weibo via a “direct communication channel.”
TRON is super safu! Just follow me on @justinsuntron. We have a direct channel to Weibo and will get this resolved asap.
TRON feels the pain
Meanwhile, TRON (TRX) has been losing ground following the news. The 14th largest coin with the current market value of $915 million, has lost over 2.6% on a day-to-day basis to trade at $0.0137 at the time of writing. TRX/USD is also down 6% on a weekly basis and over 31% on a month-to-month basis.
Looking technically, TTRX/USD is moving within the downside channel. The initial support is created by $0.0133. This barrier is reinforced by the lower line of the daily Bollinger Band and the lowest level of
On the upside, the initial resistance awaits us on approach to $0.0148. This area limited the recovery at the beginning of December; also, it is reinforced by the middle line of the daily Bollinger Band. Once it is out of the way, the upside is likely to gain traction with the next focus on the confluence of SMA100 (Simple Moving Average) daily and the upper line of the Bollinger Band (currently at $0.0163).
Considering the downward-looking RSI (Relative Strength Index), the bearish scenario looks more likely in the short run.