Tron [TRX] boasts of metrics, but is there more than meets the eye?
- Tron witnessed a spike in its total value locked (TVL), however, its overall activity declined.
- Furthermore, NFT trades and dApp activity on the blockchain network also took a hit.
Over the last week, Tron witnessed quite a few improvements across multiple sectors. However, its active address metric didn’t post an impressive figure.
According to data provided by TRONSCAN, the active addresses on the Tron network declined. Over the past month, it fell from 3.3 million to 1.86 million (at press time). Undoubtedly, the decline in activity on Tron could harm the network in the long run.
Read Tron’s Price Prediction 2023-2024
What about the dApp activity?
One of the reasons behind the decline in Tron‘s activity could be the decreasing interest in its dApps.
According to DappRadar, the overall activity of popular dApps on Tron such as SunSwap, Bridgers, and TransitSwap, went down.
The number of active wallets on SunSwap fell by 3.39% over the last week. For Bridgers and TransitSwap, the decline was 34% and 3.04% respectively.
This decline in activity also impacted SunSwaps transactions and volume. Over the last 24 hours, the number of transactions on SunSwap fell by 39% and its volume sunk by 63.73%.
However, despite the decline in dApp activity, the overall TVL of Tron continued to increase. Over the last month, it escalated from 4.27 billion to 5.25 billion according to data provided by DefiLlama.
On the other hand, over the last week, new accounts on the Tron network were also added. However, despite this, the stakers continued to lose interest in Tron.
In the past seven days, the number of stakers on the network declined by 4.57%. This brought the number of stakers on the network down to 342,544.
TRX takes a hit
Another indicator of declining interest in the Tron network was a fall in NFT trades. According to Santiment’s data, the number of NFT trades on the network fell considerably.
All these events impacted Tron’s volume too which fell materially over the past month.
How much are 1,10,100 TRX worth today?
Despite these factors, whales continued to buy TRX. This was showcased by the increasing percentage of large addresses holding the coin.
In conclusion, even though Tron managed to show growth in terms of TVL and new accounts, the declining activity could cause problems for the network in the long term.
Improvements on the NFT and dApp front would be required to overcome the current challenges being faced by the network.