Is Tron Toast? Network Activity Crumbles As Crypto Cools Off
21 Janeiro 2024 - 12:00PM
NEWSBTC
The Q4 report from Tron reveals a significant contrast between its
thriving DeFi sector and subdued core network activity. Despite a
remarkable 41% increase in Total Value Locked (TVL) in Tron’s DeFi
space, securing the second position after Ethereum, the network
experienced a slowdown in user growth. At the time of writing, TRX
was trading at $0.1108 up 0.9% in the last 24 hours, and tallying a
3.6% increase in the last seven days, data from Coingecko shows.
Related Reading: Solana Stablecoin Volume Reaches Record High Of
$300 Billion In January Tron User Engagement Stalls Amid Market
Upturn In contrast to the broader crypto market rally, Tron faced a
peculiar deceleration in user expansion. Daily active addresses and
new user creations both declined by 2%, raising concerns about
Tron’s ability to attract and retain users during favorable market
conditions. The number of new addresses created on Tron also fell
by 2% to 185,000, intensifying worries about user engagement.
Transaction Decline The decrease in user activity resulted in a
2.4% drop in transactions, averaging at 4.9 million daily. Messari,
the on-chain analytics firm behind the report, attributed this
decline to reduced “staking/unstaking” and “other” activities,
indicating a slowdown in core network operations. Consequently,
transaction fees experienced a 6% decrease compared to Q3. Source:
Messari DeFi Flourishes Despite the subdued user activity, Tron’s
DeFi sector witnessed substantial growth. The Total Value Locked
(TVL) surged by 20%, solidifying Tron’s status as a major DeFi hub.
This remarkable leap positioned Tron with more than double the TVL
of its closest competitor, BNB Chain. TRON TVL. Source: Defillama
DEXes Gain Momentum In addition to the DeFi success, decentralized
exchange (DEX) trading volume within Tron saw a remarkable 42%
increase, breaking a trend of three consecutive quarters of
decline. This surge suggests a rising adoption of Tron’s native
DEXes, potentially fueled by the DeFi boom. Total crypto market cap
is currently at $1.6 trillion. Chart: TradingView.com Assessing
Tron’s Q4 Tron’s Q4 presents a puzzling scenario with the
coexistence of a thriving DeFi sector and sluggish user activity.
The reasons behind this user apathy, along with the decline in new
address creations, warrant further investigation as they may hold
the key to unlocking Tron’s full potential. Related Reading:
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Tron’s Q4 reflects a dual narrative – a flourishing DeFi metropolis
alongside a less active user environment. The network’s ability to
bridge this gap and leverage its DeFi momentum to rekindle user
engagement remains uncertain. The upcoming quarters will reveal
whether Tron can overcome this disparity and establish a unified
narrative of success. Featured image from Pexels
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