- TRX’s recent rally is fueled primarily by a surge in daily active users and spot traders, not whales or derivatives.
- However, declining decentralized trading volumes signal mixed market sentiment, suggesting cautious optimism ahead.
The crypto world is buzzing as TRON’s native token TRX rallies impressively, but the question on everyone’s mind is: who’s driving this surge? Contrary to popular belief, whales aren’t the main players here. Let’s break down what’s really fueling TRX’s breakout.
User Activity Ignites TRX Momentum
Over the last 24 hours, TRX has gained 2.53%, with trading volume jumping 14% to $507 million. This boost in activity is reflected on-chain, where daily active addresses skyrocketed by 64%, from 2.8 million to 4.6 million users. This means 1.8 million more people are interacting with the TRON network daily—a significant sign of growing adoption and interest.
Transaction volume has also surged, hitting 11 million transactions, signaling that users aren’t just holding TRX—they’re actively using it. This combination of rising user count and transaction activity typically points to healthy network growth and often precedes bullish price action.
Also read: Avalanche Price Alert: Whales Flee as AVAX Faces Major Bearish Breakdown
DeFi Activity Paints a Mixed Picture
Despite this user-driven optimism, decentralized finance (DeFi) metrics on TRON tell a different story. Total value locked (TVL) in TRON-based protocols has stabilized at around $4.89 billion but shows little sign of growth. More importantly, decentralized exchange (DEX) trading volume has plummeted 62% in just five days—from $213 million on June 5 to under $81 million today.
This sharp decline indicates that while the broader network activity is thriving, traders on decentralized platforms appear less enthusiastic. Many DEX users might be offloading their holdings, dampening the bullish momentum in the DeFi sector.
Spot Traders Are the True Catalysts
With whales and derivative traders largely absent from the buying spree, the spotlight turns to spot traders. Data reveals a notable increase in TRX inflows and outflows on exchanges, showing that spot buyers have purchased roughly $1.27 million worth of TRX in the past 24 hours.
This steady accumulation by retail and spot traders is likely the main force behind TRX’s recent gains. If this buying pressure continues, TRX could sustain its upward trajectory in the short term.
What’s Next for TRX?
TRX’s breakout is powered by growing user engagement and spot market demand—not big whales or derivatives hype. While the rally looks promising on the surface, the contrasting decline in DeFi trading volumes signals potential vulnerabilities ahead.
Investors should watch whether spot buying momentum holds and if DeFi participation can rebound to reinforce the bullish case. For now, TRON’s surge is a classic story of grassroots user activity sparking a breakout.
Want to stay ahead of TRON’s next moves? Keep an eye on network activity and spot trading volumes — these are the real engines driving TRX forward.
