In the midst of a significant downturn in the cryptocurrency market, TRON [TRX] has faced downward pressure just like other digital assets. In the past week, TRX has witnessed a drop of 10% in its value, pushing its market cap below the $20 billion threshold.
Despite this bearish trend, things took a positive turn in the last 24 hours as TRX managed to post a minor recovery, climbing by 3.7% to reach a current price of $0.2253. While this uptick offers a brief relief for TRX holders, the overall market conditions remain challenging.
Against this backdrop, insights from the on-chain analytics platform CryptoQuant shed light on Tron’s network activity evolution. According to analyst Darkfost, Tron’s decentralization seems to be progressing.
Darkfost highlighted a shift towards decentralized exchanges (DEXs) and platforms over centralized exchanges (CEXs), even though the number of monthly active addresses on Tron remained stable throughout 2024.
This transition aligns with the increasing preference for decentralized financial activities, with Tron’s Decentralized Finance (DeFi) ecosystem witnessing a surge in adoption.
As noted by Darkfost, the Total Value Locked (TVL) on Tron’s DEXs has surged, indicating growing investor confidence in the network’s security and development.
Positive Outlook for Tron’s Metrics
Besides these fundamental changes, other metrics present a nuanced outlook on TRX’s potential future price movements.
Coinglass data reveals that Tron’s Open Interest (OI), representing the total number of outstanding futures contracts, has risen by 0.96% to $159.54 million in the past day.
While this uptick in OI usually signifies increased trading interest and confidence, the overall TRX OI volume has fallen by 32% to $334.66 million, indicating a slowdown in trading activity amidst cautious market sentiment.
Technically, TRX shows signs of strength with higher lows on the daily chart, hinting at a possible uptrend. TRX’s recent bounce from a significant demand zone further supports the case for continued positive momentum.
Although past performance is not indicative of future outcomes, these technical and on-chain indicators suggest that Tron might be poised for further upside. However, this potential growth is subject to market stabilization and sustained interest in its DeFi ecosystem.