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Tron was founded in 2017 by Justin Sun with a vision centred around decentralised content sharing. As the ecosystem has evolved, Sun's vision has largely been overtaken by a more consequential role in the DeFi space: Tron has become one of the most heavily-used networks in cryptocurrency for transferring USDT (Tether), the world's largest stablecoin. On many days, the Tron network processes more USDT transfer volume than Ethereum, driven by its near-zero transaction fees and fast confirmation times.
The network uses a Delegated Proof of Stake (DPoS) consensus mechanism, where TRX holders vote for Super Representatives who validate transactions and produce blocks. TRX is the native token, used to pay fees and participate in governance. In Australia, individuals can purchase Tron using AUD through PayID transfers on AUSTRAC-registered platforms like Swyftx.
Tron's role in the stablecoin ecosystem
This is what makes Tron distinctive. While most blockchain projects compete on smart contract capabilities or DeFi innovation, Tron has found product-market fit in a more widely-adopted niche: moving stablecoins cheaply.
USDT on Tron (TRC-20 USDT) is frequently used for peer-to-peer transfers, cross-border remittances, and exchange-to-exchange settlements in markets where transaction costs matter. The network's low fees (typically fractions of a cent) have made it the default rail for users who need to transfer dollar-denominated value quickly, without paying other Layer 1 network's variable, and sometimes pricey, gas fees.
This usage pattern means demand for TRX is often tied to stablecoin transfer activity on the network, since every transaction requires a small amount of TRX for fees.
What drives TRX's price?
Stablecoin volume
Tron’s primary demand driver is the volume of USDT and other stablecoins transferred on its network. Growth in stablecoin issuance on Tron and increases in daily transfer volume may influence demand for TRX.
Fee burn dynamics
Tron employs a transaction fee burn mechanism. When network usage is high and burn rates exceed new TRX emissions from block rewards, the circulating supply can temporarily decrease. This dynamic means heavy network usage typically exerts deflationary pressure on the token supply.
Market and regulatory conditions
As a globally traded asset, TRX is sensitive to macroeconomic indicators, stablecoin-specific regulation, and broader cryptocurrency market movements.
How to store TRX
After purchasing TRX, assets can remain on a regulated custodial exchange or be withdrawn to a compatible wallet such as TronLink for direct ownership and governance participation. Refer to our crypto wallet guide for more on self-custody.
