Why Tron network remains dormant
- Tron’s revenue and fees increased, as did its total amount of TRX staked.
- TRX’s derivatives market metrics also remained bearish.
Tron’s [TRX] past week was rather quiet as there were no major updates or developments. This was evident from Tron’s weekly highlight. The only update related to its ecosystem was that, as of 27 July, over 2,000 individuals had signed up for Tron’s HackaTRON season 5.
?Check out #TRON Highlights from this week (Jul 22, 2023 – Jul 28, 2023).
— TRON DAO (@trondao) July 29, 2023
Read Tron’s [TRX] Price Prediction 2023-24
The token’s price also remained under bears’ influence over the last seven days. Moreover, a look at Tron’s fundamentals revealed that the blockchain’s usage was declining.
Tron’s fundamentals are dwindling
Santiment’s data further revealed that the blockchain’s development remained dormant last week. As per the charts, Tron’s development activity plummeted in the last seven days. Additionally, its development activity contributors count also remained low.
TRONSCAN pointed out that the blockchain’s total number of transactions crossed the 6 billion mark. Though this implied growth, the reality was different. In fact, TRX’s number of daily transactions declined over the last month. The blockchain’s daily active addresses also followed the same declining trend.
Nonetheless, not everything was working against TRX, as a few key stats remained in its favor and suggested growth. For instance, Tron’s TVL gained upward momentum on 25 July, which was encouraging. The blockchain’s fees and revenue were also rising.
The blockchain’s staking ecosystem witnessed growth as well. It was evident from the rise in its total staked amount.
As per Staking Reward, the number of TRX stakers remained stable. At the time of writing, TRX had a staking ratio of 47.62% and a staking market capitalization of $3,549,822,602. On top of that, TRX’s burn rate also looked promising. On 29 July alone, 12,028,211 TRX were burned, with a net negative production ratio of -6,960,996.
— TRON Community (@TronixTrx) July 30, 2023
TRX investors have other reasons for concern
The aforementioned achievements did not reflect TRX’s price action as it was under bears’ influence. According to CoinMarketCap, TRX was down by over 1.5% in the last seven days. At press time, the token was trading at $0.08264 with a market cap of over $7.4 billion.
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TRX’s trading volume also declined, reflecting that investors’ interest in trading TRX was low. Its Binance funding rate was green. This meant that buyers were acquiring TRX in the derivatives market despite the slow-moving price action.
Bearish sentiment also dominated the futures market. Coinglass’ data pointed out that TRX’s long/short ratio declined, which is a typical bearish move. Its open interest also remained stable, decreasing the chances of a trend reversal.