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Tron reduced trading fees by 60% last Friday. While this appears to be a move to improve accessibility, the actual driver is almost certainly a looming plasma, allowing zero-fee USDT transfers.
Tron’s moats were always distributed. Users continue to trade with Tron despite the extremely inexpensive alternative. This is a sign of deep merchant-bank connections that we have built, especially in Latin America. The fact that Tron is currently lowering its fees could suggest that the moat is under threat.
The stakes are high. Around it 90% of Tron’s revenue It comes from USDT transfer. Even after recent cuts, the average fee is $2.80 per transaction, with Ethereum about five times as much as $0.60. Tron has USDT supply for the past month A 1.4% decline, representing an outflow of around $1.1 billion. At the same time, Plasma’s pre-release campaign is already attracted $2 billion USDT deposits.
Financially, Tron remains solid. In August numbers, fee reductions will be reduced by revenue from third to fourth largest chain, but will generate twice the generation of BNB. Its FDV/fees multiple shifts from the Solana 135X from the almost hyped 36X. This is a much lower level than the broader L1 group.
For the first time, Tron is facing serious challengers in the core market. Only time can tell if a sufficient fee reduction is enough to keep Tron competitive and maintain the volume of Stablecoin on the network.
