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TRON Ranks Second in TVL, but this is Where the Network’s Dominance is Faltering

TRON [TRX] said on January 10 that it ranks second in the cryptocurrency market in terms of total value locked (TVL). Despite this achievement, data revealed that the TVL on TRON has dropped significantly in recent months.

This prompted the question of whether TRON will maintain its position in the cryptocurrency market and recover from its recent drop.

One possible explanation for TRON’s decreased TVL is a decline in the platform’s dApp activity. Popular dApps like as SunSwap, JustLend, and Transit Swap suffered a decrease in unique active wallets, according to DappRadar.

SunSwap’s unique active wallets, for example, fell by 13.61%, while JustLend and Transit Swap fell by 14.93% and 8.93%, respectively.

SunSwap’s volume declined by 37.9% within the same time period. As a result, the drop in the number of active users could indicate that customers were losing interest in certain dApps. As a result, the entire value locked on the platform is reduced.

Despite the decreased TVL, TronScan data showed that TRON’s income climbed from $509,937 to $637,520 in the previous month. This could be due to a rise in the number of active addresses on the network, indicating an increase in the number of users. Messari data show that the number of active addresses increased by 4.47% in the recent week.

This could be one of the reasons why traders were optimistic about TRON. According to Coinglass data, 52.3% of all positions on TRON were long. As a result, traders expected TRON’s price to climb in the future.

USDD, the ecosystem’s stablecoin, was another significant feature of TRON. According to TronScan data, USDD transfer volume has fallen. The decrease in USDD stablecoin usage could indicate that fewer traders are using USDD to trade on decentralised exchanges.

While dropping TVL and dApp activity may be cause for concern for TRON, increased revenue and favourable trader mood may indicate that the platform was still seeing overall growth at the time of publication.

 

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