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TRON has experienced a notable surge in daily transactions over the past six months, pointing to growing adoption of the blockchain network. According to on-chain analyst CryptoOnchain via CryptoQuant Insights, the average daily transactions on TRON from January to late May 2025 ranged between 6 to 9 million. This consistent activity suggests increased user engagement, likely driven by TRON’s efficiency and low-cost transaction model.
Despite this uptick, TRON still trails behind Solana [SOL] in raw transaction count. Moreover, while TRON’s transaction fees have hovered near those of Bitcoin [BTC], they remain significantly higher than Solana’s, raising questions about long-term competitiveness in the fee-sensitive decentralized finance (DeFi) space.
DeFi TVL Fluctuations Undermine Bullish Sentiment
While network usage has grown, TRON’s DeFi ecosystem has painted a less optimistic picture. Data from DeFiLlama indicates that the Total Value Locked (TVL) on TRON has been in decline since December 2024, with only a brief spike in mid-May. The past 24 hours have seen that uptick reversed, further reinforcing concerns over sustainability in DeFi growth.
These mixed signals complicate the broader outlook. Even though transaction metrics reflect heightened activity, declining TVL suggests that users may not be committing long-term capital to the network, limiting its potential to attract and retain liquidity-intensive protocols.
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TRX Struggles to Break Out Amid Selling Pressure
Price action on the TRX/USDT daily chart reinforces this ambiguity. After a bullish phase in early May, momentum has cooled, with TRX now consolidating near the $0.25 resistance zone. Unlike the earlier rally, current capital flow metrics suggest bearish sentiment is returning. The Chaikin Money Flow (CMF) dipped to -0.08, indicating outflows, while the Accumulation/Distribution (A/D) line also declined, pointing to sustained selling pressure.
However, analysts note that a resurgence in Bitcoin’s price could revive bullish sentiment for TRX. If that occurs, TRX may reclaim the $0.28 support and aim for a move toward the $0.30 retracement level.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
