- The Tron network is dominating USDT payments, with Q2 settlement volumes hitting $1.25 trillion.
- TRX has seen relatively stable volatility this year amid declining Open Interest.
Tron [TRX] is emerging as a major competitor to digital payments giant Visa, with USDT settlement volumes on the network in Q2 2024 reaching $1.25 trillion.
According to Token Terminal, USDT volumes on the Tron blockchain hit a third of Visa’s annual settlement volumes. USDT transactions on the network have increased five-fold from around $25 billion in 2020.
Source: Token Terminal
Tron’s rising network activity
USDT volumes on Tron spiked from $4.2 billion to $16 billion in 2023, per AMBCrypto’s look at Dune Analytics data.
The total market cap for stablecoins on the network also stood at $60 billion, according to DeFiLlama, suggesting that the blockchain has become the defacto settlement network for USDT.
Source: DefiLlama
Besides being the most preferred network for transactions, Tron was also emerging as a formidable rival in the decentralized finance (DeFi) industry.
Tron is the second-largest blockchain after Ethereum [ETH] by Total Value Locked (TVL). Its TVL has increased from around 5 billion in August 2023 to $7.68 billion at press time, according to DeFiLlama.
However, Tron’s network growth pales in comparison to Solana [SOL], which has seen its TVL grow over tenfold to $4.76 billion at press time from around $300M last year.
Is TRX reflecting Tron’s growth?
At the time of writing, TRX was up by around 20% year-to-date, having traded within $0.14 and $0.10 for most of the year. It has also moved within the Bollinger bands, pointing towards relatively stable volatility.
Source: TradingView
The buying behavior also showcased moderate interest, with few instances of TRX being overbought or oversold.
A look at the short-term price action showed that the Relative Strength Index (RSI) has made a higher high and bounced, suggesting further gains.
A key resistance level lies at $0.139, also the 0.786 Fib level. Hitting this target will pave the way for a rally to record highs.
Realistic or not, here’s TRX market cap in BTC’s terms
Data from IntoTheBlock showed that 88% of TRX holders, equivalent to 125 million addresses, were “In the Money” at press time, suggesting an overall bullish sentiment.
Source: IntoTheBlock
However, the Futures market showed skewed sentiment around TRX. The declining Open Interest explained the mild price volatility and a decline in overall market participation.
Source: Coinglass
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