The Tron network has been experiencing a resurgence of activity and excitement over the last few days. But could this trigger enough demand for a sizable Tron coin recovery?
Just like most other cryptocurrencies, TRX experienced a substantial pullback from its December peak.
For context, its $0.238 press time price tag was equivalent to a 46% discount from its $0.449 historic all time high achieved on 4 December.
TRX demonstrated clear signs of support at the $0.21 price level where sell pressure appears to have leveled out.
Nevertheless, the cryptocurrency’s MFI recently soared to its highest level so far this month, which means liquidity has been flowing back into the cryptocurrency.
While Tron coin’s current price tag may not necessarily indicate strong demand. However, there are some observations which may point towards bullish momentum build-up.
Among those observations include a mid-month shift from negative to positive funding rates.
Tron Stabecoin Marketcap Surges to a New ATH
Tron coin has been on the forefront of stablecoin growth in the last 12 months and it seems to be keen on maintaining that status.
The network’s stablecoin marketcap just surged to $62.44 billion which marks a new all-time high.
Tron’s latest market cap growth means it controls roughly 27.71% of the total stablecoin marketcap. But, what does this mean for the network?
Stablecoins have been at the forefront of Tron’s growth strategy in a bid to leverage robust revenue growth.
This impressive stablecoin marketcap growth means Tron coin is ready to take advantage of robust stablecoin demand.
The recent new ATH makes Tron one of the most liquid networks. Meanwhile, the network has been experiencing significant TVL outflows in the last 12 months.
For context, Tron TVL hovered around $66.04 billion in total value locked exactly 12 months ago.
That figure has since declined to $5.84 billion which is quite a huge drop but still a large figure nonetheless.
Tron Coin Ranks High in Terms of Fees
While Tron’s aggressive liquidity growth underscores readiness for a strong bullish move, it may already be influencing liquidity.
The network just ranked as the second highest DeFi protocol in terms of fees generated.
Tron was second to Tether’s USDT in the ranking, which puts into perspective the level of utility that the network has been achieving.
According to the ranking, Tron generated an impressive $60 million in revenue in the second week of February.
Tron’s impressive revenue points to strong network activity. The higher the level of network activity, the more the demand for TRX.
These developments may boost the level of confidence among investors. For now, the demand for Tron coin remains limited and in tune with the prevailing market sentiment.
In other words, TRX could be a healthy candidate for a healthy uptick once the bulls regain control.
