A look into Tron’s latest achievements as TRX attempts a bounce
- Tron experienced some TVL outflows but still managed to secure the second position by locked stake.
- TRX managed to hold its long-term support despite last week’s crash.
The growing diversity of the blockchain space has paved the way for intense competition. The Tron [TRX] network has been among the dominant players and a recent highlight points to one of the ways that it was winning.
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The Tron blockchain has been outshining almost all of its competition in terms of TVL growth. It currently has the second highest total value locked, trailing behind the Ethereum network. We previously looked into how stablecoins have contributed to the network’s growth but more importantly, robust user growth has also been a key driving factor.
The network reportedly averaged over 1.1 million daily active users in the last four weeks. While this contributed to healthy TVL, it does not necessarily mean that the TVL has been on a steady upside. Its total value locked recently clocked in at $5.24 billion. A substantial dip from the $5.85 billion 4-week TVL high achieved at the end of July.
The slight TVL outflows are a reflection of the recent crypto liquidity outflows as market confidence dipped. This means that market conditions have a clear impact on TVL health.
TRX sustains support leading to some upside
Tron’s native crypto TRX has a history of evading the overall market direction every once in a while. This was evident during the latest market wide crash which affected most cryptocurrencies. TRX did suffer some downside but it managed to bounce back within its long term support range, although barely.
TRX’s $0.076 press time price represents a rally of over 8% from its lowest price point during last week’s trading session. This means it has so far managed to outperform Ethereum and Bitcoin, especially in terms of how much it has recovered from recent lows.
Read about Tron (TRX) price prediction for 2023/2024
Despite a healthy recovery, trading activity and demand remain low. On-chain volume is still within the lower monthly range, which is in line with the prevailing level of uncertainty in the market. On the other hand, the slight upside is a reflection of the recovering demand in the derivatives segment. The Binance funding rate showed some signs of bullish demand.
Will TRX maintain the trajectory? Well, at least the above observations confirm demand resilience. However, the lack of a strong factor to support continued bullish sentiments suggests that there could still be some risks of more downside. On the other hand, we could see prices surge again if the tide shifts in favor of the bulls.