Gas Fees Are Not The Only Reason TRX Is Enjoying DeFi Adoption

Gas Fees Are Not The Only Reason TRX Is Enjoying DeFi Adoption

By Sapphire | Sapphire Crypto | 28 Sep 2020


Is This The Beginning of A Significant Shift?

With the launch of SUN token and other DeFi focused projects, TRX has gained a lot of favor in the DeFi space in a very short amount of time. Some very well timed moves by Sun and his team are proving to be very viable indeed. If you are not operating with thousands of dollars in the DeFi space, you are pretty much excluded by default, due to insanely high gas fees. Though gas fees have recently eased off, they remain pretty volatile and can spike at any moment.

This obviously played a massive role in TRX gaining more adoption as a DeFi alternative. Though gas fees were the original motivation for users to utilize Tron as an alternative, it is definitely not the only case for TRX to be taken more seriously in the world of DeFi.

Demand Requires Scalability

Though many would agree that ETH is definitely best suited to service the world of DeFi, many issues still plague the network and make it difficult to serve the industry at this stage. Gas fees are the main culprit when it comes to factors discouraging users from utilizing ETH for DeFi purposes but there are more.

At this stage ETH can only handle about 15 transactions per second, while TRX can perform in the region of approximately 2000 transactions per second. This is a massive variance and makes the case for TRX being a lot more scalable than ETH at this stage.

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Scalability is a very important aspect to consider when it comes to utilizing DeFi protocols. Congested networks are not user friendly, or very efficient in an industry as fast and volatile as Crypto. Block times on TRX are approximately 3 seconds and make it a much more viable option as a DeFi vehicle. I have personally experienced major setbacks due to congestion on the Ethereum network and so avoid using it until these issues can be resolved. 

I hold ETH in my hodl portfolio and believe that it will be a top performer in the next bull run. However, current issues regarding congestion and high gas fees are going to deter more users other than myself. Many will be looking for an alternative until certain changes take place and Tron is looking like the most likely candidate at this point.

Rumours of an early ETH 2.0 launch may be true but will ETH 2.0 offer an instant solution to the current issues plaguing the network? This all remains to be seen and until such time TRX is likely to grow in DeFi adoption.

 

 

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Sapphire
Sapphire

Interesting views, news, opinions and all things Crypto. Independent and honest assessments of Crypto projects and earning opportunities within the space. Opinions are my own and not financial advice. Sapphirecrypto.org


Sapphire Crypto
Sapphire Crypto

Interesting views, news, opinions and all things Crypto. Independent and honest assessments of Crypto projects and earning opportunities within the space. Opinions are my own and not financial advice.

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