July 24, 2024
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Blockchain News

New Milestone for Tron [TRX], but Will That Really be Enough

RON’s recent statement demonstrates the company’s efforts to enhance TRX’s global popularity and usage. TRON has announced a collaboration with the Republic of Dominica to usher in the Web 3.0 future. According to the official statement, TRON will create the first Caribbean Digital Identity Initiative, which will entail the creation of the Dominica Metaverse as well as the operation of the Dominica Digital Identity (DDID) and Dominica Coin (DMC) projects.

In terms of TRON’s network performance, a comparable pace of growth and greater adoption was also seen. Furthermore, TRON just reached a new milestone by successfully completing 5 billion transactions, demonstrating the network’s dependability and popularity.

Not only that, but TRX was only second behind Ethereum [ETH] in terms of overall stablecoin market capitalization. In fact, TRON’s stablecoin market valuation reached $36.4 billion, much above that of BNB Chain [BNB], Solana [SOL], and Polygon [MATIC].

Despite increased growth and usage, Tron’s network value did not appear to follow the same pattern.

Moreover, according to DeFiLlama’s statistics, TRON’s total value locked (TVL) has been steadily declining over the last week. TRON’s TVL has dropped more than 2% in the previous 24 hours as of publication time. Despite TRX’s price movement, which was in favor of bearish, might be one cause for the value fall, a study of TRX’s on-chain data revealed that other reasons were also at work.

According to Santiment’s research, TRON’s Binance financing rate has dropped significantly in recent days. This is a bad trend since it indicates that there is less demand for the token on the Futures market. Nevertheless, the weighted sentiment remained negative, indicating that investors had less faith in TRON. Last week, the network’s development activities also decreased, which was generally alarming for TRON.

TRX’s price performance was disappointing, owing to the market’s prevailing pessimistic mood. TRX has dropped more than 3% in the previous seven days, according to CoinMarketCap. It was trading at $0.06714 at the time of writing. TRX’s daily chart indicated that a similar performance may be expected in the future days, since the majority of market indicators were pessimistic. For example, the MACD highlighted sellers’ market advantage. TRX’s Chaikin Money Flow (CMF) dropped sharply, raising the prospect of a price drop.

The Relative Strength Index (RSI) was in neutral territory. However, TRX’s Money Flow Index (MFI) increased – A bullish indication.