New milestone for Tron [TRX]but will that really be enough

  • TRX completed 5 billion transactions and also outperformed others in terms of stablecoin market cap
  • However, TVL fell and market indicators remained bearish

TRONs latest announcement is a testament to its efforts to increase global acceptance and use of TRX. TRON has announced a partnership with the Commonwealth of Dominica to usher in a new era of Web 3.0. The official announcement stated that TRON will develop the first Caribbean Digital Identity Initiative, including the creation of the Dominica Metaverse, as well as the operation of the Dominica Digital Identity (DDID) and Dominica Coin (DMC) programs.

Read TRONs [TRX] Price prediction 2023-24

Comparable on-chain growth

A similar growth rate and increased adoption was also noted in TRON’s network performance. In fact, TRON recently reached another milestone by successfully completing 5 billion transactions, proving the reliability and high utilization of the network.

Not only that, but TRX was only second to Ethereum [ETH] in terms of total market cap of stablecoins. In fact, TRON’s market cap for stablecoin hit $36.4 billion — significantly higher than BNB Chain’s [BNB]Solana [SOL]and Polygon [MATIC].

However, the network value registered a decline

However, despite greater adoption and usage, Tron’s network value didn’t seem to follow the same trend.

In fact, DeFiLlama’s data showed that TRON’s total value locked (TVL) has been falling steadily over the past week.

Source: DeFiLlama

At the time of writing, TRON’s TVL had registered a drop of more than 2% in the past 24 hours. While one possible reason for the drop in value may be TRX’s price action, which favored the bears, a look at TRX’s on-chain stats suggested that other factors were at play as well.

TRON’s demand decreases?

Santiment’s data also revealed that TRON’s Binance funding rate has dropped significantly in recent days. This is a negative development as it reflected less demand for the token in the futures market.

In addition, weighted sentiment remained on the negative side, indicating less investor confidence in TRON. The network’s development activity also slowed last week, which looked worrying overall for TRON.

Source: Sentiment

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Investors can expect this from TRX

TRX’s performance on the price front was unsatisfactory, thanks to the dominant bearish sentiment in the market. According to CoinMarketCap, TRX is down more than 3% in the past seven days. At the time of writing, it was trading at $0.06714.

TRXThe daily chart suggested that similar performance can be expected in the coming days as most market indicators have been bearish. For example, the MACD revealed the upper hand of sellers in the market. TRX’s Chaikin Money Flow (CMF) registered a sharp decline, increasing the likelihood of a price drop.

The Relative Strength Index (RSI) remained in the neutral zone. Nevertheless, TRX’s Money Flow Index (MFI) gained upward momentum – a bullish signal.

Source: TradingView

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