- Social interest in Tron increased as it outperformed Ethereum in some areas.
- TVL declined as dApps started to underperform.
According to Google Trends’ data, the Tron [TRX] protocol had out-competed Ethereum [ETH] in terms of social interest. While comparing the keywords TRC20 to ERC20, it was seen that there was a large interest in Tron’s keywords.
Source: Google Trends
Read Tron’s [TRX] Price Prediction 2023-2024
TRX up whales’ sleeves
Coupled with that, the weighted sentiment for Tron improved as well. This implied that the crypto community had a positive outlook toward TRX. Whale behavior could be one reason for the positive sentiment being seen by Tron. Over the last few months, the interest in TRX from large addresses has increased materially.
The increased attention towards TRX from whales has coincided with a surge in its price, indicating that it could be a driving force behind its positive price movements.
However, if there is a high concentration of whales holding TRX, it could lead to the centralization of the network. In this scenario, retail investors may face greater exposure to future price fluctuations if these whales choose to liquidate their positions.
Source: Santiment
At press time, the price volatility of TRX declined, indicating that retail investors may be safer in the short term. However, the decline in TRX’s volume that occurred over the past few weeks could suggest that there may be a threat of a price correction for TRX in the future.
Source: Santiment
Realistic or not, here’s TRX’s market cap in BTC’s terms
Coming to the protocol
Data from Token Terminal suggested that the Tron protocol has experienced a significant decline in development activity, with a 50% drop in the number of active developers on its network in the last 30 days. This could signal a lack of future updates or upgrades to the protocol, potentially limiting its ability to keep up with competitors.
Moreover, the daily activity on the Tron network also decreased by 12.0% during the same period. This could be concerning for Tron investors and users, as it may indicate a slowdown in the network’s adoption and usage.
Source: Token Terminal