TRON falls 60% transaction fees: Impact on stablecoin payments

The TRON network (TRX) has recorded a historic 60% fall in transaction gas price on August 29. According to CryptoQuant Research, this adjustment has reduced the price of each unit of energy from 210 sun to 100 sun.

Source: CryptoQuantThe current gas price is at its lowest level since 2021. This move is made to cope with high on-chain costs, due to the rise in TRX price. The average transaction fee has fallen to $0.59 on September 8, the lowest since April 2024. The reduction in fees also comes with a decrease in revenue. Total daily network fees have dropped from $13.9 million before the gas price reduction to $5 million on September 7.

Source: CryptoQuantAnother on-chain analyst noted that the 100-day moving average of block size has risen to its highest level since July 2023. Block size reflects the volume of data and transactions within the block.

This sustainable growth is a strong bullish signal for the TRON network, indicating that network usage is naturally and continuously increasing.

Why is the TRON network experiencing stable growth?

Source: CryptoQuantOn September 12, user Darkfost pointed out whale transactions ( exceeding 100,000 dollars) surged on the TRON network. Whale activity accounted for up to 86% of the USDT transfer volume for the day. This is not an isolated event. High whale activity is described as "emergency organization" and is accompanied by increased network activity.

The TRON network is processing 11 million transactions, close to the network's all-time high. Therefore, the reason behind TRON's growth seems to be the increasing acceptance from the public and the popularity of the network as the main layer for transferring stablecoins, especially USDT.

Source: CryptoQuantThe difference between TRON and ETH shows a clear disparity in USDT trading volume. Comparing the average USDT transaction size on both networks, TRON reached 465 USD ( 7-day SMA) while ETH was only at 117 USD ( 7-day SMA).

Moreover, the average transaction size in recent months has remained stable on TRON, but has fallen on Ethereum. This suggests that Ethereum is often used for smaller transactions, likely related to DeFi and other payments.

This reinforces the position of the TRON network as a preferred network for stablecoin payments, while highlighting the market's trust in this network.

Minh Anh