Tron has retreated to $0.125 on Monday, down by almost 5% from its highest level last week, bringing its market cap to $10.3 billion.
While Tron has fallen recently, it has outperformed other cryptocurrencies. Bitcoin and Ethereum have entered a bear market by dropping by over 20% from their highest levels in June.
Tron’s performance is likely due to its stronger on-chain metrics compared to other blockchains. Data compiled by DeFi Llama shows that the network has over 1.83 million addresses.
Tron’s active addresses are higher than Bitcoin and Ethereum combined. They are also significantly higher than other popular blockchains like Polygon, Solana, and Binance Chain.
Further data shows that Tron has become the second largest blockchain in the industry, with over $7.3 billion in total assets. Ethereum has $55 billion, while Solana has over $5.46 billion.
Most importantly, Tron has become the biggest players in the stablecoin market. Data by TronScan shows that the network handled Tether stablecoins worth over $42 billion in the past 24 hours. This amount is comparable to what popular payment networks like Visa and Mastercard handle daily.
— CryptoQuant.com (@cryptoquant_com) July 5, 2024$TRON Network Maintains Resilient User Base Amid Market Uncertainty
"@trondao has exhibited a resilient user base as active users have grown since the start of the year and maintained near all-time high levels despite market uncertainty and sell pressure across the broader… pic.twitter.com/LJBfdXixvU
This explains why Tron has become the second most profitable network in the crypto industry after Ethereum. It has generated over $816 million in fees this year, higher than Bitcoin’s $744 million and Uniswap’s $575 million.
At the same time, the number of TRX tokens in circulation has been falling in the past few years. There are now 87.2 billion tokens, down from 88.2 billion in January and over 101 billion in 2022.
Tron tokens in circulation
This trend is happening as the number of TRX generated remains smaller than those burned. For example, data shows that over 5.7 million TRX tokens were generated on Sunday and 7.5 million of them were burned.
Tron price has done well over time
Tron, unlike other cryptocurrencies like Bitcoin and Ether, does not make headlines regularly. However, it has done well over time, helped by its strong on-chain metrics.
Tron price jumped to a record high of $0.1452 in February, a 220% increase from its lowest point in December 2022. It has dropped by just 13% from its highest point this year, making it one of the only coins not in a bear market.
Its recent retreat happened because of the rising fear among crypto investors that pushed most tokens downward. The crypto fear and greed index has dropped to the fear zone of 36.
Therefore, there is a likelihood that Tron’s strong fundamentals may help it beat other cryptocurrencies like XRP, Ethereum, and Solana.