Tron becomes TVL’s second largest chain; This means celebration for TRX

  • Tron outperforms most of its rival networks when it comes to TVL
  • However, TRX is facing resistance in its attempts to cross above its 50-day MA

The Tron network can be considered one of the blockchains that has managed to achieve remarkable growth so far this year. The network is about to end 2022 on a positive growth trajectory after deposing the Binance Smart chain to become the second largest crypto network by TVL.

Read Thrones [TRX] price forecast 2023-2024

Tron’s total value locked recently crossed over $4.39 billion, putting it slightly above BSC by roughly $260 million. This achievement places Tron second on the list after Ethereum [ETH] which has over 23 billion dollars in TVL. However, this achievement speaks volumes for Tron’s journey, as well as for the future of the original cryptocurrency TRX.

Tron’s higher rating in terms of TVL can be translated into higher demand for the network. In other words, it means that investors can have high hopes from the ecosystem. Furthermore, it can translate into higher demand for TRX over time and positive sentiment.

If this ends up being the case, it could lead to stronger demand for TRX in the long term.

But what about TRX’s short-term performance?

An analysis of TRX’s market cap revealed that it was down roughly $360 million over the past four days. Nevertheless, this represented a slight improvement of as much as $170 million in the last 24 hours.

Source: Sentiment

But can this market value show some stability in growth in the next few days? Perhaps the weighted sentiment can tell us a thing or two about how investors feel about TRX.

The weighted sentiment calculation revealed that collective investor sentiment favored the bears over the past three days.

Tron TRX weighted sentiment

Source: Sentiment

The lower weighted sentiment also favored the bears and reflected the press time observation with TRX’s price action. The cryptocurrency has been on a general upward trajectory since mid-June.

However, it has come under selling pressure, especially after coming in contact with its 50-day moving average. Unsurprisingly, TRX’s price has struggled with resistance at every attempt to cross above the 50-day MA.

Tron (TRX) price action

Source: TradingView

Can TVL performance lock in more demand?

TRX’s press time outlook based on price action confirmed that the bulls were struggling. On the other hand, Tron’s growing TVL did not underscore an increasingly strong network position. In an ideal world, such developments should encourage favorable investor sentiment.

However, one could only wait and see if that would be the outcome over the next few days.

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