- Tron becomes one of only 2 major blockchains that sustained positive TVL growth in Q2.
- TRX bears could garner a chance to push to the support range.
Messari recently released its Q2 report evaluating the state of layer 1 networks. Tron [TRX] and Cardano were the only top two blockchains that sustained positive TVL growth during the quarter.
Is your portfolio green? Check out the Tron Profit Calculator
According to the Messari report, Tron had the second-highest TVL growth in Q2 2023 after Cardano. Tron pulled off a 7% gain which represents a 48% TVL upside compared to Q2 2021 (YoY).
For perspective, Cardano took the lead after securing a 14% TVL growth during the same quarter.
Check out @MessariCrypto‘s report for the state of L1’s in Q2 of 2023. 📈📉
Cardano and #TRON were the only featured L1s with positive QoQ #DeFi TVL growth. 🚀
💎 Cardano grew 14% QoQ⁰
💎 TRON grew 7% QoQ and is now up 48% YoYDiscover more here: https://t.co/sYabkBBZ4f pic.twitter.com/EmLa98HHgq
— TRON DAO (@trondao) August 14, 2023
Tron’s TVL growth underscores the growing confidence in the blockchain so far this year. The impressive quarterly TVL growth was accompanied by an impressive surge in new addresses during the same period.
According to DeFiLlama, the number of new users grew from as low sub 1.7 million levels to over 3.5 million new users during the same quarter.
Source: DeFiLlama
User activity has notably been lower so far in Q3 during which new users have dropped below the 1.5 million daily average. The returning users metric has been around since June but it also demonstrated a dip since then.
Tron is stuck in limbo but which side will win?
Tron’s native cryptocurrency TRX has been recovering from 2022 lows in the last few months. A reflection of the strong TVL growth and network activity observed this year. However, there have been periods where the price pulled back despite its ascending pattern. That has been the case since the end of July when the price started cooling off after a previous rally.
TRX has since run out of sell pressure for the last two weeks, leading to lateral price action. However, it will soon have to pick a side. TRX traded at $0.077 at press time, which barely represents a substantial price change despite signs of liquidity flowing into the cryptocurrency.
Source: TradingView
The Money Flow Index (MFI) revealed that some accumulation has been taking place recently. However, low demand was not enough to trigger a significant bullish move.
If this continues, there will be a significant probability of capitulation. More so because TRX was already headed toward its ascending support level. Such an outcome means the price could dip as low as $0.073 for a support retest.
Realistic or not, here’s TRX market cap in BTC’s terms
As for TRX metrics, the volume and open interest in USDT remain relatively dormant and within their lowest levels in the last four weeks. It is worth noting that the eventual breakdown or breakout is still a toss-up and could largely depend on the overall market sentiment.
Source: Santiment