Tron's Market Cap Rises 33.8% on Stablecoin Growth but DeFi TVL Drops 33%

Tron has solidified its position as a leading blockchain for USDT transactions in 2025, driven by strategic partnerships and infrastructure upgrades. The network attracted key institutions like Kiln, Nansen, P2Porg, and Kraken to join as Super Representatives, expanding its validator base and enhancing institutional trust. Additionally, the launch of USD1, a stablecoin initiated by World Liberty Financial, marked a significant milestone. USD1, which leveraged Tron’s existing stablecoin infrastructure, achieved a billion-dollar circulation supply within months, further cementing Tron’s role in cross-border payments and everyday transactions [1].

The platform’s integration with services such as AEON Pay, Bridgexyz, Chainlink, MoonPay, Plume, Turnkey, and Rumble has broadened its Web3 capabilities. Tron’s market capitalization grew by 33.8% in the first half of 2025, fueled by token-burning activities and improved market sentiment. Network activity also surged, with 784 million transactions executed in Q2, placing it among the top five blockchains by transaction volume. Tron’s ability to capture $319 million in revenue through token burning outperformed many traditional platforms, highlighting its efficiency in value retention [1].

Despite these strengths, Tron’s DeFi ecosystem faces significant hurdles. Total Value Locked (TVL) on the network declined by 33% to $5 billion by mid-2025, a stark contrast to the robust DeFi environment observed in earlier quarters. Analysts attribute this decline to security vulnerabilities, limited developer engagement, and a shortage of skilled professionals to build advanced DeFi applications. While Tron’s infrastructure excels in high-volume USDT transactions, its DeFi offerings lag behind competitors like Ethereum and Solana, which offer more mature lending, staking, and trading platforms [1].

Stablecoin operations remain a cornerstone of Tron’s success. The network’s USDT supply reached $81.2 billion in 65 months, a 41% increase since 2024. This growth underscores Tron’s dominance as a payment layer for USDT, leveraging its low fees and fast transaction speeds. However, the expansion of stablecoin usage has not translated into comparable DeFi innovation. The platform ranks third in daily active addresses, trailing Solana and Near but outperforming many rivals [1].

A newly launched TRON wallet, supported by the Japan Quantum Computing Association, aims to streamline USDT access for retail and business users. The wallet simplifies creation and management, aligning with Tron’s strategy to capitalize on USDT’s liquidity. However, analysts caution that security gaps and a lack of developer expertise remain critical challenges. These issues hinder the development of robust DeFi applications, raising concerns about Tron’s long-term competitiveness [1].

The tension between Tron’s stablecoin prowess and DeFi limitations reflects broader industry dynamics. While USDT’s liquidity and Tron’s transaction efficiency sustain short-term utility, the platform must address infrastructure gaps to attract developers and build next-generation DeFi tools. Regulatory uncertainties and competition from interoperable blockchains further complicate its trajectory. For now, Tron’s position as a USDT hub remains secure, but sustaining this dominance will require resolving DeFi-related bottlenecks and fostering innovation [1].

Source: [1] [Tron Excels as USDT Hub but Faces DeFi Challenges in 2025] [https://coinmarketcap.com/community/articles/6883915f964c4a7078a33a71/] [2] [USDTアクセスのためのTRONウォレットを開始 - Bitcoin.com News] [https://www.jqca.org/news.php]