Wrapped tokens have always raised some questions. It does make sense to tokenize assets on a different blockchain for specific purposes. Wrapping TRX into WTRx to use within the TRON ecosystem, however, seems a bit unclear.
WTRX Needs to Find its Niche
It is no secret that TRON is building up its own DeFi ecosystem. Providing exposure to decentralized finance on this blockchain will be interesting to behold. Fast transfers and lower fees make it more suited to this purpose than Ethereum. At the same time, TRON doesn’t always have the best reputation in the cryptocurrency space. Convincing investors and speculators may be difficult, at least during the early stages.
That being said, two assets have proven to be worthwhile so far. The USDJ stablecoin, for example, seems to be generating a fair bit of trading volume. Not too long ago, liquidity mining for SUN began. The token has come down from its all-time high of $66, but it’s still worth nearly $26 at today’s prices. A very promising statistic, all things considered.
All of this makes one wonder what role WTRX will play. Wrapping TRX on TRON seems a bit of a futile exercise. TRX Is natively supported by current DeFi platforms already. There doesn’t appear to be any urgent reason to convert it to WTRX, unless something major changes in the future.
Considering how WTRX is a TRC20 token, it will need to find its niche. Users can swap WTRX to any other TRX20 token on the JustSwap platform. In this regard, it certainly can serve a purpose in the future. After all, it is not the first time something like this is tried.
WETH Seems Successful too
One interesting example is Wrapped Ether, or WETH. It too is a tokenized version of Ethereum on its own native blockchain. Contrary to initial expectations, there is a demand for WETH, for some reason. It is primarily traded against ETH itself across the exchanges supporting this token.
In recent months, WETH has found its place in Ethereum’s DeFi ecosystem. It is not unlikely to see WTRX do the exact same in the months to come. How big TRON’s decentralized finance segment will become, is tough to predict. There are some interesting projects under development.