- Tron has surpassed Ethereum in network fee revenue since December 2024.
- Ecosystem growth, including active addresses and memecoins, fueled Tron’s rise.
The rivalry between Tron (TRX) and Ethereum (ETH) has taken an interesting turn. Recent data from CryptoQuant shows that Tron has consistently outperformed Ethereum in network fee revenue since December 2024.
This shift is attributed to Tron’s growing ecosystem, including increased activity in decentralized finance (DeFi) and memecoins. However, despite this fee advantage, experts believe Tron is unlikely to overtake Ethereum in market capitalization anytime soon.
The Fee Revenue Battle
The battle between Ethereum and Tron is like a classic underdog story. Back in May 2020, Ethereum was the undisputed champion of the crypto world, raking in a whopping $10 million in network fees while Tron was barely making a dent with just $124,160. Ethereum’s dominance reached epic proportions in November 2021. We’re talking $1.8 billion in fees, while Tron was still playing in the minor leagues with $31.7 million.
But here’s where it gets interesting, May 2024 marked a stunning turn of events. For the first time, the underdog Tron pulled ahead by a nose, bringing in $129.7 million in fees compared to Ethereum’s $128.6 million.
By December 2024, Tron’s dominance was clear. It recorded $315.2 million in fee revenue, significantly higher than Ethereum’s $213.9 million. This sustained growth has been driven by increased activity on the Tron network, including a surge in USDT transfers and the rise of DeFi platforms like SunSwap.
Tron’s ecosystem has seen remarkable growth over the past year. The number of active addresses increased from 5.9 million in February 2024 to 9.2 million by December. Additionally, TRX transactions skyrocketed from 7.7 billion in December 2023 to a record 355 billion in October 2024.
Memecoins have also played a role in Tron’s success. The launch of Sun Pump, a platform similar to Pump Fun, has attracted attention and activity. Furthermore, World Liberty Financial’s adoption of TRX has added to its appeal, as the organization continues to buy and support the cryptocurrency.
On-chain data reveals that WLFI has purchased an additional $2.6 million worth of TRX, adding 10.8 million TRX to its holdings. This acquisition brings the total value of TRX in WLFI’s treasury to $7.5 million.
Market Performance and Future Outlook
Despite the token’s fee revenue success, its market performance still lags behind Ethereum. TRX is trading at $0.2302, down 2.47% in 24 hours, a trading volume of $646.89M, with a market cap of $19.82 billion. In contrast, Ethereum, despite a 2.98% drop, remains the second-largest cryptocurrency with a price of $2,808.7 and a market cap of $337.99B.
While Tron’s growth is impressive, experts believe it is unlikely to surpass Ethereum in market value soon.