Tron [TRX] finds impetus thanks to stablecoin transfers in this way
- TRON had 50% more circulating stablecoins than Ethereum
- TRX’s Open Interest formed a bearish divergence which could lead to a pullback
Amidst all the chaos in the crypto-markets following the collapse of crypto-friendly banks, Tron [TRX]‘s ecosystem shared its latest weekly report. In doing so, it provided updates on some of its key performance indicators (KPIs).
The report highlighted that the total number of transactions recorded over the past week hit 46.6 million. This, while the number of new accounts added to the network went past 1 million.
On the other hand, the total value locked on the chain’s smart contracts regained its $11 billion-mark after dipping to $9.3 billion. This was when news of USDC’s de-pegging first broke out.
Read TRON’s [TRX] Price Prediction 2023-24
USDT transfers helped Tron?
The uptick in trading activity could have been powered by stablecoin transfers as Tron registered a significant jump in its stablecoin circulating supply. In fact, a tweet shared by an analyst revealed that due to the market shake-up, TRON had 50% more stablecoins than Ethereum [ETH]. While ETH’s marketcap declined, TRON recorded the highest weekly growth, more than 6% among top blockchains.
Here, it’s worth noting that the supply of Tether [USDT] went past 40 billion and enjoyed a dominance of 93.69% in the overall Tron’s stablecoin market cap.
Trend that I haven't seen many people talk about.
The flight from USDC to USDT this week pushed the total Tron stablecoin market cap higher, even as the Ethereum stablecoin market cap fell.
Tron now has more than 50% as many circulating stablecoins as Ethereum. pic.twitter.com/Elp1eMYJKU
— Patrick | Dynamo DeFi (@Dynamo_Patrick) March 13, 2023
Additionally, the total value on chain increased by 10% over the last four days, of which USDT was the token with the highest value.
TRX in trouble?
Things didn’t look too good for TRX, however, at the time of writing. The Open Interest (OI) formed a bearish divergence vis-à-vis the price, indicating that market was weakening and there could be a pullback. The drop in OI could be due to short-sellers covering their positions and exiting the market. These would be the same entities who jumped on to the scene anticipating a major collapse across the market.
Additionally, investors turned pessimistic on TRX as the number of short positions taken for the coin exceeded the longs, as per data from Coinglass. The Longs/Shorts Ratio declined by 26% over the past week too.
At press time, TRX was exchanging hands at $0.0667, down 1.74% over a 24-hr period. Much of its losses over the week had been cut down by its price performance over the last 12 hours or so.
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Meanwhile, as per data from Tronscan, about 19.39 million tokens were moved out of circulation in the last 24 hours – Representing a hike of 31% from the previous day.