Tron's on-chain activity benefits from recent price rally

Tron’s DEX daily trading volume hits $280.4 million, the highest since December 2022.
TRX's daily revenue has reached a new all-time high of $5.4 million, while the network’s Total Value Locked is also rising.
Investors should be cautious about TRX's decreasing development activity.

Manish Chhetri FXStreet

Tron (TRX) price rose 24% last week and showed a slight pullback to trade at $0.16 as of Tuesday. However, on-chain data suggest the bullish trend is likely to continue, evidenced by the increasing trading volume and daily revenue generated by the network.

Tron's on-chain data hints continuation of positive trend

Crypto intelligence tracker Artemis Terminal data shows that Tron's Total Value Locked (TVL) increased from $8.3 billion on Friday to 8.6 billion on Monday, extending a rise that started on August 5.

This 3.6% increase in TVL indicates growing activity and interest within the Tron ecosystem, mainly due to its newly launched meme coin platform SunPump on August 13. It suggests that more users deposit or utilize assets within TRX-based protocols, adding credence to the bullish outlook.

TRX TVL chart

Another aspect bolstering the platform's bullish outlook is a recent surge in traders' interest and liquidity in the TRX chain. Artemis Terminal data shows that TRX Chain's decentralized exchange (DEX) trading volume rose from $237.9 million on Friday to $280.4 on Monday, the highest since December 2022.

Tron DEX Trading Volume

Meanwhile, DefiLlama data shows that Tron generated $5.4 million in revenue on August 21, a new all-time high, further bolstering the bullish outlook.

Tron Daily Revenue chart

Despite rising DEX trading volume, a new all-time high in daily revenue collected, and increasing TVL, TRX's Development Activity has remained low, which might raise apprehensions about the project's endurance, capacity for innovation, and engagement with the community in the foreseeable future. This indicates that investors should also be cautious about expecting an immediate price rally.