TRX completed 5 billion trades and also outperformed others in terms of stablecoin market capitalization. However, TVL decreased and market indicators remained bearish.
TRON’s latest announcement is evidence of its efforts to increase the global adoption 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 mentions that TRON will develop the first Caribbean Digital Identity Initiative, which includes the establishment of the Dominica Metaverse, as well as the operation of the Dominica Digital Identity (DDID) and Dominica Coin (DMC) programs.
User @trondao tweeted that “TRON will be helping to develop the Digital Identity Program for the Dominica Metaverse.”
He added that “this partnership recognizes Dominica’s potential to lead the way in this innovative technology.”
Similar Chain Growth
A similar rate of growth and increased adoption was also observed when it came to the performance of the TRON network. In fact, TRON recently hit a new milestone by successfully completing 5 billion transactions, proving the reliability and high usage of the network.
On Twitter, it was read that “TRON just hit a huge milestone, with over 5 billion total transactions.”
Not only that, but TRX was second only to Ethereum [ETH] in terms of total stablecoin market capitalization. In fact, the market capitalization of TRON’s stablecoin reached $36.4 billion, considerably higher than that of BNB Chain [BNB], Solana [SOL], as well as Polygon [MATIC].
Network Value Registered a Decrease
Despite increased adoption and usage, the value of the Tron network did not seem to follow the same trend.
In fact, data from DeFiLlama revealed that TRON’s Total Value Locked (TVL) has steadily declined over the past week.
TRON’s TVL had recorded a decline of more than 2% in the past 24 hours. Although one potential reason for the fall in value may be TRX’s price action, which was in favor of the bears, a look at TRX’s on-chain metrics suggested that other factors were at play as well.
Sentiments´data also revealed that TRON’s Binance funding rate dropped considerably in recent days. This is a negative development as it reflected lower demand for the token in the futures market.
Furthermore, the weighted sentiment remained on the negative side, suggesting lower investor confidence in TRON. Network development activity also slowed down last week, which overall seemed worrisome for TRON.
To conclude, TRX’s performance on the price front was unsatisfactory, thanks to the prevailing bearish sentiment in the market. According to CoinMarketCap, TRX is down more than 3% in the last seven days.
TRX’s daily chart suggested that similar performance can be expected in the coming days as most market indicators were bearish. For example, the MACD revealed the advantage of sellers in the market. TRX’s Chaikin Money Flow (CMF) recorded a sharp drop, raising the possibility of a price crash.
The Relative Strength Index (RSI) rested in the neutral zone. Nonetheless, the TRX Money Flow Index (MFI) gained bullish momentum – a bullish sign.
By Audy Castaneda
