The second quarter of 2023 brought positive news for Tron – it was one of the two main blockchains that saw an increase in Total Value Locked (TVL). So, can we expect a rise for the TRX cryptocurrency?
In recent reports published by Messari on the state of layer one networks for the second quarter of this year, Tron and Cardano stood out as some of the few blockchains to achieve positive TVL growth.
The report indicates that Tron had the second largest TVL growth in Q2 2023, just behind Cardano. This network achieved a 7% increase, representing a 48% growth compared to the second quarter of 2021. For comparison, Cardano led with a TVL increase of 14% during the same period.
This growth in Total Value Locked in Tron indicates growing trust in this blockchain this year. The significant quarterly TVL growth was accompanied by an impressive rise in new addresses during the same period.
According to data from DeFiLlama, the number of new users grew from just over 1.7 million to over 3.5 million new users in the same quarter.
However, user activity has been lower in the third quarter, during which the number of new users dropped below an average of 1.5 million per day. A returning user metric was observed from June, but it has also declined since then.
Tron’s native cryptocurrency, TRX, has been steadily making up for its 2022 losses in recent months. This reflected the strong TVL growth and network activity observed this year. Nonetheless, there were times when its price experienced corrections, despite its upward trend. This was the case since late July when the price began to stabilize after an earlier bull run.
Over the past two weeks, TRX has exhausted its selling pressure, leading to sideways price action. It will soon, however, have to choose a direction. At the time of publishing, TRX was priced at $0.077, which doesn’t represent a significant price change despite signs of liquidity inflow into the cryptocurrency.
The Money Flow Index (MFI) revealed some accumulation had taken place recently. Nevertheless, low demand wasn’t enough to trigger a significant movement.
If this trend continues, the likelihood of capitulation will be significant. Especially since TRX is already heading towards a rising support level. Such an outcome means the price might drop to as low as $0.073 to test the support.
As for indicators for TRX, volume and open interest in USDT remain relatively inactive and are at their lowest in the past four weeks. It’s worth noting that a definitive breakdown or breakout is still uncertain and may largely depend on the overall market mood.
