Tron [TRX] experienced a bullish trend in November, much like many other blockchain networks, showcasing significant activity levels.
However, it stood out from its competitors by leading in stablecoin transfers for the month, leveraging the strong momentum it had built in prior months.
An analysis by CryptoQuant recently unveiled that Tron’s USDT transfer volume surged to a record high of $587.2 billion in November, marking the network’s highest monthly volume to date.
This accomplishment positioned Tron as the top network for stablecoin transfers during the month, showcasing a consistent uptrend in stablecoin transfers across the network over the months.
Despite this milestone in stablecoins, Tron’s momentum has somewhat slowed recently following a period of robust network activity.
Total Value Locked (TVL) has shown a consistent upward trajectory, reflecting the network’s expansion and TRX price movements.
An examination of TVL in USD terms revealed a recent peak at an all-time high earlier this month. Nonetheless, TVL in TRX terms has been on a decline over the past few months.
As of December 13th, the network held 27.62 billion TRX in TVL, a noticeable drop from the peak of 83.70 billion TRX in March of this year.
The variance in dollar value from the recent all-time high is partly attributed to the rally in TRX price accompanying on-chain volumes.
Tron’s daily transactions have seen a substantial increase over the past 12 months. However, transaction activity in December has witnessed a sharp decline from the peaks seen in November.
For instance, transactions hit a high of 9.03 million on December 3rd, only to drop to 6.81 million transactions as of December 14th.
This decline in transactions may signal a decrease in enthusiasm or engagement compared to the preceding month.
Assessing Demand and Selling Pressure
The decline aligns with the recent price movements of TRX. Profit-taking became prevalent over the past two weeks following the all-time high on December 3rd.
Presently, the coin is trading at $0.2878, representing a significant 36% decline over the past fortnight.
Will TRX manage to resume its upward trajectory, or will the bears control the market for an extended period? Coinglass data indicates that TRX outflows have dominated over the past two weeks, particularly after the peak on December 3rd.
Notably, the Tron network has experienced further outflows over the weekend, with over $5.51 million outflows observed in the last 12 hours.
Despite a substantial decrease in the last two weeks, Open Interest remains relatively high at $277.76 million.
Furthermore, Funding Rates continue to stay positive, suggesting that bearish sentiments are relatively low despite the recent price corrections.