Why Tron is failing to impress investors in a bull market
- TRX’s daily active addresses and transactions declined, while TVL went up.
- TRX’s price sank over the last week, and a few metrics looked bearish.
Tron [TRX] recently posted a tweet that talked about all the notable developments that happened in the ecosystem over the week that ended on 14 July. The network also reached a new milestone during the same period. However, despite these positives, TRX’s price action was not at par considering how the last bull market allowed multiple coins to register double digit growth. Apart from price, the blockchain also failed to increase network activity over the last few weeks.
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As per Tron Dao’s latest tweet, one of the most notable developments of the week ending 14 July was Bittrex Global’s support for six Tron-based tokens. The newly supported tokens include USDD, BTT, NFT, WIN, SUN, and JST. The tweet also revealed that Tron became the title partner of TOKEN2049.
Another major development was related to Tether. According to the tweet, Tether issued an additional 1 billion USDT on the network, increasing the total circulating supply of TRC20-USDT to more than 44 billion. While this happened, the Tron network reached a new milestone.
?Check out #TRON Highlights from this week (Jul 08, 2023 – Jul 14, 2023).
— TRON DAO (@trondao) July 15, 2023
TRONSCAN’s tweet further pointed out that the average daily transfer volume of stablecoin on the Tron network exceeded $10 billion, which was encouraging. Though these updates looked promising, things did not reflect on the blockchain’s network activity.
Artemis’ data revealed that Tron’s daily active addresses declined over the last few weeks. A similar trend was also seen in terms of the network’s daily transactions. Nonetheless, Tron’s network value increased, as evident from its rise in TVL. Additionally, the token’s DEX volume also gained upward momentum.
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Tron is failing to impress investors
Just like Tron’s network activity, the token’s price also failed to gain momentum last week, despite the bullish market. While several cryptos registered double digit growth, TRX’s price declined by over 1% in the last seven days. At the time of writing, it was trading at $0.07945 with a market capitalization of over $7.1 billion, making it the 11th largest crypto.
For most of the week, TRX’s demand in the derivatives market was low, which was evident from its low Binance funding rate. Positive sentiment around the token also plummeted during the past few days. After an increase, TRX registered a decline in trading volume, reflecting a lower willingness of investors to trend the token. To add to the misery, TRX’s 1-week price volatility went up while its price dropped slightly, increasing the possibility of a continued downtrend.