Tron Network Registers 52% Rise in Active Addresses YTD, TRX Price Down 2%

by

As a seasoned analyst with over two decades of experience in the financial markets, I’ve witnessed countless trends and cycles, but the meteoric rise of Tron (TRX) has left me quite intrigued. The network’s dominance in daily active addresses, stablecoins market, and its burgeoning web3 ecosystem is nothing short of impressive.

The widespread embrace of Web3 initiatives and digital currencies has significantly boosted the popularity of leading blockchains at the first layer (L1), such as Ethereum (ETH), Tron (TRX), and Solana (SOL). These platforms have drawn millions of users worldwide. As reported by IntoTheBlock, the Tron network, a proof-of-stake (PoS) delegated blockchain, maintains its position atop other networks in terms of daily active addresses.

As a long-time cryptocurrency enthusiast with years of hands-on experience, I find it fascinating to observe the dynamic changes happening within the blockchain landscape. In my view, the surge in daily active addresses on the Tron network from 1.59 million in January to approximately 2.42 million in July represents a significant milestone and is indicative of growing interest in this platform. A 52% increase in just six months is impressive, especially when compared to the average of around 691k daily active addresses on the Bitcoin network and 631k on Ethereum in July. This trend suggests that Tron’s unique features, such as its scalability and user-friendly interface, are resonating with more users, which could potentially position it as a strong competitor in the rapidly evolving cryptocurrency market. I am eager to see how this progression unfolds and what the future holds for this innovative blockchain network.

The number of active @trondao addresses increased by 52% since the start of the year.

Currently averaging over 2.42 million daily, compared to 1.59 million on January 1st

— IntoTheBlock (@intotheblock) August 1, 2024

Tron Network Dominates Stablecoins Market

As a researcher observing the cryptocurrency landscape, I’ve noticed a striking increase in the daily active addresses associated with Tron. This surge can be traced back to a substantial rise in its stablecoin market. In particular, during July, the market capitalization of Tron’s stablecoins experienced a roughly 2% growth, reaching an all-time high of approximately $59.2 billion.

Even though USDC from Circle didn’t provide support because of geopolitical issues, the Tron network experienced a substantial increase in the total quantity of Tether (USDT) on its platform.

Based on disclosed information from Tether, the issuer of stablecoins, over $60 billion worth of USD Tether (USDT) is present on the Tron blockchain. In contrast, approximately $50.7 billion in Tether USDT can be found on the Ethereum network.

The stablecoins market has grown over the years fueled by the mainstream adoption led by institutional investors and retail traders. As of this writing, the total stablecoins market cap is about $164 billion, and a daily average trading volume of about $69 billion.

Rising Web3 Ecosystem

The Tron network’s web3 environment has experienced substantial expansion, with a total value locked (TVL) currently at approximately $8.14 billion. Notably, even amidst the destructive impact of the 2022 cryptocurrency bear market on web3, the Tron network has shown exceptional growth in its TVL since 2020.

Over time, the Tron network’s affordable transaction fees, security, and swift transactions have attracted a growing number of users due to these benefits. Some prominent web3 projects on this platform include JustLend boasting over $6 billion in Total Value Locked (TVL), SUN DEX, and stUSDT RWA, with other notable initiatives as well.

As a dedicated crypto investor, I’m always on the lookout for platforms that foster sustainable growth. In this regard, I appreciate the Tron network’s commitment to facilitating effortless compatibility with other blockchain networks. For example, JustMoney DEX, boasting a TVL (Total Value Locked) of approximately half a million dollars, can be accessed across five distinct blockchains. This interoperability not only expands my investment opportunities but also strengthens the overall ecosystem.

Impact on TRX

During this current crypto market adjustment following the fall of Bitcoin below $65,000, Tron’s TRX coin has decreased by approximately 5% over the past week, trading at around $0.129 on Thursday. This large-sized alternative cryptocurrency, valued at roughly $11 billion in its fully diluted market cap, has encountered substantial resistance near the 14 cent mark and may be developing a reversal trend.

Over a period of one week, the price of TRX has created a double peak pattern, while showing a bearish discrepancy in the Relative Strength Index (RSI) trend.

If the negative market trends persist, the TRX price should find a stable base approximately at 11 cents.

Read More

2024-08-01 14:55