TRX Supply Control and Justin Sun's 64% Dominance: Assessing Market Risks and Tron's Undervalued Decentralized Future

The Centralization Conundrum: Justin Sun's 64% TRX Control

According to a report by Cryptorank, Justin Sun reportedly controls 64% of Tron's circulating TRX supply as of September 2025TRX Supply Control: Shocking Revelation on Justin Sun’s 64% Dominance^[1]. This level of token concentration has ignited fierce debates about the decentralization of the Tron network. Critics argue that such control grants Sun disproportionate influence over governance, market dynamics, and development prioritiesTRON Drops Q2 Report: Revenue, USDT Dominance^[2]. While Sun has contested these claims in court, a recent ruling denied his attempt to block Bloomberg's disclosure of his holdingsTRON Protocol Roadmap 2025^[5], signaling a potential shift toward transparency.

Despite the controversy, TRX's price has remained relatively stable, with a muted market reaction to the allegationsTRX Supply Control: Shocking Revelation on Justin Sun’s 64% Dominance^[1]. This suggests that investors may be prioritizing Tron's utility—such as its role in stablecoin infrastructure—over governance concerns. However, the long-term risks of centralization, including regulatory scrutiny and investor trust erosion, cannot be ignoredTRON’s Q4 Surge: Market Cap Hits $21.94B^[3].

On-Chain Metrics: Deflationary Trends and Network Resilience

Tron's on-chain data reveals a deflationary narrative. The circulating supply of TRX has declined by -2.59% in Q4 2024 and -1.8% in Q2 2025, driven by token burns from transaction fees outpacing new mintingTRX Supply Control: Shocking Revelation on Justin Sun’s 64% Dominance^[1]. Staking adoption under the Stake 2.0 mechanism has further reinforced this trend, with 51% of the total supply staked by Q4 2024TRON TRX Market Analysis: Is the 2025 Rally Built to Last?^[4]. This deflationary pressure, combined with Tron's dominance in USDT transactions (99.2% of stablecoin supply in Q2 2025TRON Drops Q2 Report: Revenue, USDT Dominance^[2]), positions the network as a critical infrastructure layer for global payments.

However, decentralization risks persist. The geographic concentration of Super Representatives (SRs)—with 21% of nodes in the U.S.—and the influence of large TRX holders over SR elections highlight vulnerabilitiesTRX Supply Control: Shocking Revelation on Justin Sun’s 64% Dominance^[1]. While Tron's DPoS model allows for frequent SR rotations (every six hours), the top 27 SRs still wield significant powerTRON TRX Market Analysis: Is the 2025 Rally Built to Last?^[4].

Governance and Market Sentiment: A Mixed Bag

Tron's governance structure has evolved to include community-driven initiatives like the TRON DAO framework, enabling autonomous organizations to manage decentralized projectsTRON Drops Q2 Report: Revenue, USDT Dominance^[2]. Yet, the centralization of voting power among large stakeholders remains a concernTRON TRX Market Analysis: Is the 2025 Rally Built to Last?^[4]. The recent 60% fee reduction approved by the governance communityTRON Protocol Roadmap 2025^[5] underscores Tron's agility in adapting to user needs, but it also raises questions about the influence of insiders like Sun.

Market sentiment is equally divided. TRX's price surged 138% in 2024 and reached $0.2643 in early 2025TRON Drops Q2 Report: Revenue, USDT Dominance^[2], supported by a 17% quarter-over-quarter rise in market cap to $26.5 billionTRON TRX Market Analysis: Is the 2025 Rally Built to Last?^[4]. However, whale activity has plummeted, with a 121.7% drop in net flows over the past weekTRON TRX Market Analysis: Is the 2025 Rally Built to Last?^[4], indicating caution among large investors. Retail traders, on the other hand, remain bullish, with 65% of Binance users taking long positionsTRON TRX Market Analysis: Is the 2025 Rally Built to Last?^[4]. This divergence suggests a potential disconnect between short-term volatility and long-term utility.

Undervaluation Thesis: Tron's Decentralized Future

Despite the centralization risks, Tron's fundamentals suggest it is undervalued relative to its peers. The network processes 10 billion transactions in 2025TRX Supply Control: Shocking Revelation on Justin Sun’s 64% Dominance^[1], with daily USDT transfers exceeding $24 billion—surpassing Ethereum's $20 billionTRON Protocol Roadmap 2025^[5]. This utility, combined with a growing TVL of $6.41 billion in DeFi platforms like JustLend and SunDEXTRX Supply Control: Shocking Revelation on Justin Sun’s 64% Dominance^[1], highlights Tron's role as a low-cost, high-throughput blockchain.

Comparisons with Ethereum and BSC further reinforce this case. While Ethereum dominates DeFi TVL (53.3% of the marketTRON Protocol Roadmap 2025^[5]), Tron's focus on stablecoin settlements and emerging markets provides a complementary niche. BSC's $6.734 billion TVLTRON’s Q4 Surge: Market Cap Hits $21.94B^[3] pales in comparison to Tron's deflationary momentum and institutional adoption (e.g., partnerships with MoonPay and ChainlinkTRX Supply Control: Shocking Revelation on Justin Sun’s 64% Dominance^[1]).

Strategic Investment Case

For long-term investors, Tron presents a compelling opportunity. The network's deflationary supply dynamics, stablecoin dominance, and governance upgrades position it to capture value in a fragmented crypto ecosystem. While Sun's token control introduces risks, the recent P2P network upgrade and fee cutsTRON Protocol Roadmap 2025^[5] demonstrate a commitment to scalability and user adoption.

However, caution is warranted. The legal and regulatory landscape remains uncertain, and further centralization could deter institutional adoption. Investors should monitor the outcome of Sun's legal battles and the evolution of Tron's DAO frameworks.

In conclusion, Tron's decentralized future may be undervalued by current market prices. For those willing to navigate the risks, positioning in Tron-based assets offers exposure to a network that is redefining blockchain utility in the stablecoin era.