- Tron made huge strides in the DeFi sector in the first quarter, but failed to do the same in the second quarter
- However, activity on Tron increased compared to the previous quarter
According to recent data, Tron [TRX] managed to do extremely well in the first quarter of 2024, despite stiff competition from other layer 1 networks.
The DeFi scene
One of the key areas where Tron did well was the DeFi sector. In fact, data showed that Total Value Locked (TVL) on TRON surged past the eleven-digit mark in the first quarter, rising 25% quarter-over-quarter from $8.1 billion to $10.1 billion. As the first quarter came to a close, TRON maintained its position as the second-highest network according to TVL, surpassing BNB Chain ($7.2 billion) by nearly $3 billion.
In addition, TVL, expressed in TRX, also registered a quarterly increase, with an increase of 8% from 76.4 billion to 82.5 billion. This growth seemed to highlight TRON’s continued dominance and resilience within the DeFi landscape.
That said, while TRON managed to post an increase in the first quarter, the same couldn’t be said for the second quarter. For example, in recent weeks, the TVL for TRON has fallen significantly, falling below the $9 billion mark.
Source: Artemis
Activity on the network
In the first quarter, average daily transactions on TRON remained relatively stable, with a modest decline of 1% quarter-over-quarter from 4.9 million to 4.8 million. Remarkably, this figure remained below the level of the same period last year, with an average of 7.1 million daily transactions recorded in the first quarter of ’23.
Additionally, average daily activity on active addresses showed little change in both the past year and quarter, maintaining an average of 1.5 million active addresses per day in the first quarter, representing a marginal increase of 4% quarter-over-quarter .
After two consecutive quarters of decline, the average number of new addresses per day recorded a modest increase of 2% quarter-on-quarter in the first quarter, from 184,500 to 187,800. About 12% of all active addresses in the first quarter were newly created, a figure that remained stable quarter-on-quarter. Over the past year, TRON has added approximately 195,000 new addresses every day.
However, in the second quarter, things took a turn for the better, with daily active addresses on the network and transaction activity increasing. If TRON manages to maintain this momentum, it would be beneficial for both the protocol and the token’s price movement.
Realistic or not, here is the market cap of TRX in terms of BTC
Source: Artemis