Noida (coinchapter.com) – Tron (TRX) overtakes Ethereum (ETH) in multiple consecutive network fee revenues, indicating a potential change in blockchain advantage. Since May 2024, Tron’s USD-based fee revenue has consistently outperformed Ethereum. Tron’s low-cost transactions and increased adoption in Defi and Stablecoin transfers have helped blockchain outperform its rivals.
Despite its pioneering benefits, Ethereum continues to face challenges from the high gas prices that have pushed users towards more efficient alternatives like the Tron.
The network’s rise is also reflected in daily trading fees above 1 billion TRX, highlighting an increase in usage. Furthermore, Tron’s role in Stablecoin transfers remains important as it handles a significant portion of global USDT transactions.
The integration of the blockchain platform with major exchange and payment providers further strengthened its position in the crypto economy.
Beyond these developments, potential Treasury General Account (TGA) drawdowns could inject liquidity into the market, reflecting past Bitcoin rallies. If a similar trend occurs, Tron can benefit from an increased investor inflow.
Tron surpasses Ethereum in network fee revenue
Tron’s increasing advantage in fee revenue highlights an increase in market relevance.
According to Cryptoquant, Tron’s network fees reached $204 million in August 2024, with Ethereum’s revenues more than tripled. This change has been consistent since May 2024, proving that Tron’s low-cost, high-throughput model attracted users at the cost of Ethereum.
Chart data confirms that while Ethereum’s fee revenue peaked in 2021, it has since declined. Meanwhile, Tron’s steady growth positions it as a more cost-effective alternative.
With daily TRX trading fees exceeding 1 billion TRX, Tron’s network activity is no longer competing. This is the lead.
While Ethereum’s reliance on layer 2 solutions has helped to alleviate some fee concerns, cost barriers remain a lasting challenge. In contrast, Tron has created a fee-efficient environment without the need for a secondary layer. This advantage is particularly pronounced in Defi and Stablecoin transactions where Tron has gained dominant share.
Investor sentiment reflects this change. Tron’s ability to maintain higher fee revenues suggests an increase in real-world adoption, making TRX an increasingly attractive asset. As blockchain adoption accelerates, Tron’s scalability and low-cost transactions could continue to drive market leadership.
Liquidity inflows could raise TRX prices even further
A new general account (TGA) drawdown of the Ministry of Finance could introduce additional liquidity into the financial system. According to Miles Deutscher, this type of event acts as a “stealth QE” and mimics traditional quantitative mitigation (QE) by injecting cash into the market.
Historically, such a liquidity surge has benefited from Bitcoin, with past TGA drawdowns promoting +84% (December 2022) and +23% (June 2023) rallies I’m doing it. Given Tron’s growing excellence, TRX could experience similar inflows of capital. Especially when investors diversify beyond BTC.
Quantitative easing (QE) usually involves central banks increasing their money supply and making them more accessible for investments. Like a drawdown of TGA, stealth QE scenarios achieve similar effects. It promotes liquidity constraints and speculative investment.
This could lead to higher trading volumes of Tron, increased participation in debt, and renewed price momentum.
As capital flows into risky assets, increased Tron’s network activity and revenue growth will make him a key candidate for even higher prices. If Bitcoin sets a bullish trend, Tron can ride the wave of liquidity and strengthen its growing market position.
TRX Prices struggle to verify wedge breakouts
Meanwhile, the TRX USD pair broke out from a bullish tech setup called “Falling Wedge.”
The TRX price has made several failed breakout attempts and it appears that the TRX price hasn’t successfully verified the latest one yet.
The TRX/USD 3-day chart shows well-defined fall patterns, usually bullish formations. TRX tested top trendlines multiple times, but was unable to maintain a breakout, leading to a denial, leading to continued integration within the wedge. Following its recent breakout, TRX Price has formed a red candle that underscored strong sales pressure near the 20-3-day EMA (red) due to weak performance. If the TRX is successfully split from the falling wedge, the measured moving target projects a price surge towards $0.33, tailoring to the previous resistance level. This represents a potential upside of over 38% from the current price of $0.238. Volume profiles show a general feature of this pattern, a decrease in trading activity during wedge formation. A volume spike is required for a valid breakout. Previous bullish movements beyond pattern resistance were short-lived due to weak follow-through volumes.