- Tron experienced some TVL outflow, but still managed to secure second position through a locked bet.
- TRX managed to maintain its long-term support despite last week’s crash.
The growing diversity of the blockchain space has paved the way for fierce competition. The Tron [TRX] network was among the dominant players and a recent high points to one of the ways it was winning.
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The Tron blockchain has surpassed almost all of its competition in terms of TVL growth. It currently has the second highest total value locked, behind the Ethereum network. We have previously examined how stablecoins have contributed to the growth of the network, but more importantly, robust user growth has also been a key driver.
????#TRON is the second largest blockchain by TVL!
Thanks to our 1.1M active users this month. No matter the market ups and downs, we stay strong and connected. Let’s keep #BUIDLING together! ???? pic.twitter.com/pRhoQE20nM
— TRON DAO (@trondao) August 23, 2023
The network reportedly averaged more than 1.1 million daily active users over the past four weeks. While this has contributed to a healthy TVL, it does not necessarily mean that TVL has been on a steady upward trajectory. Its total value recently reached $5.24 billion. A significant drop from the four-week TVL high of $5.85 billion reached at the end of July.
Source: DeFiLlama
The slight TVL outflow is a reflection of recent crypto liquidity outflows as market confidence fell. This means that market conditions have a clear impact on TVL’s health.
TRX maintains support, leading to some advantage
Tron’s proprietary crypto TRX has a history of occasionally dodging the general market direction. This became evident during the latest market-wide crash that hit most cryptocurrencies. TRX did have some downsides, but managed to bounce back within the long-term support range, albeit barely.
TRX’s press time price of $0.076 represents a rally of over 8% from its lowest price point during last week’s trading session. This means it has managed to outperform Ethereum and Bitcoin so far, especially when it comes to the extent to which it has recovered from recent lows.
Source: TradingView
Read more about the Tron (TRX) price prediction for 2023/2024
Despite a healthy recovery, trading activity and demand remain subdued. On-chain volume is still in the lower monthly range, which is in line with the prevailing level of uncertainty in the market. On the other hand, the slight increase is a reflection of recovering demand in the derivatives segment. The Binance funding rate showed some signs of rising demand.
Source: Sentiment
Will TRX maintain the trajectory? Well, the above observations at least confirm the resilience of the demand. However, the lack of a strong factor supporting the continued bullish sentiment suggests that there may still be some risks of more downtrend. On the other hand, we could see prices rise again if the tide shifts in the bulls’ favor.