Tron’s TVL drops under $15 billion as investors shy away
- Alongside its TVL, Tron’s Daily Active Addresses and transactions fell in the last week.
- Trading volume declined, but Funding Rate looked bullish.
Tron’s [TRX] Total Value Locked (TVL) reached a new high on 3 October as it crossed the $16 billion mark. However, TRONSCAN’s latest tweet revealed that the blockchain could not maintain the hike, and its TVL fell again.
— TRONSCAN (@TRONSCAN_ORG) October 7, 2023
Read Tron’s [TRX] Price Prediction 2023-24
Apart from TVL, a look at Tron’s other metrics also pointed out that its network activity dropped in the recent past.
Tron’s TVL maintains its momentum
TRONSCAN recently posted a tweet highlighting the blockchain’s key stats over the last few days. It was interesting to note that after a spike to $16.2 billion, the blockchain’s TVL fell to $15.9 billion.
— TRONSCAN (@TRONSCAN_ORG) October 8, 2023
A drop in TVL directly meant that Tron’s performance in the DeFi ecosystem was not at par. While the blockchain’s TVL fell, Tron’s total number of accounts reached 188 million. Thanks to an increase in accounts, its total number of transactions crossed the 6.5 billion mark.
Though at first glance this looked optimistic, a closer inspection told a different story.
As per Artemis, Tron’s Daily Active Address declined over the last seven days, as did its daily transactions. A similar declining trend was also noted in terms of TRX’s fees and revenue.
While assessing Tron’s state, it’s also important to take a look at its staking ecosystem, which gained much popularity after Stake 2.0. TRONSCAN’s tweet also revealed that the total number of staked TRX reached 46.8 billion.
As per Staking Rewards, at the time of writing, TRX had a total of 369.3k, while its staking ratio reached 48.45%. At press time, Tron had staking market capitalization of over $3.8 billion.
TRX’s weekly chart turns red
Like the blockchain’s metrics, TRX’s price also declined last week. According to CoinMarketCap, TRX was down by more than 2% last week. At the time of writing, it was trading at $0.08808 with a market cap of over $7.8 billion, making it the 10th largest crypto.
Investors also did not look interested in trading the token, which was evident from the drop in its trading volume.
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Over the last week, TRX’s 1-week price volatility also plummeted. However, the good news was that TRX’s Binance Funding Rate was red, meaning that investors were reluctant to buy TRX at a lower price.
Therefore, the possibility of TRX changing its course in the coming days can’t be ruled out.