Can Its DeFi Growth Sustain the Rally?

• TRX saw a 3.7% recovery amidst a double-digit weekly decline.
• Analysts highlighted decentralized platform growth and bullish technical structures.

The broader cryptocurrency market has experienced sharp declines in recent days, and TRON [TRX] has not been immune to the downward pressure. Over the past week, TRX has shed 10% of its value, dragging its market capitalization below the $20 billion mark. 

However, the trend took a turn in the last 24 hours. TRX has shown a modest recovery, rising 3.7% to a current price of $0.2253. This uptick provides a brief respite for TRX, but the broader context remains challenging.

Amid this price movement, the on-chain analytics platform CryptoQuant provided new insights into Tron’s network activity.  According to analyst Darkfost, Tron’s decentralization appears to be evolving.

Darkfost noted that while the number of monthly active addresses remained stable throughout 2024, there was a noticeable shift toward activity on Decentralized Exchanges (DEXs) and platforms rather than Centralized Exchanges (CEXs).

Source: CryptoQuant

This trend aligns with a growing preference for decentralized financial operations, and Tron’s Decentralized Finance (DeFi) ecosystem has seen increasing participation.

As Darkfost pointed out, the Total Value Locked (TVL) on Tron’s DEXs has risen, signaling greater investor confidence in the network’s development and security.

Tron’s metrics indicate a possible uptrend

Aside from these structural shifts, other metrics suggest a more complex picture for TRX’s future price action.

Data from Coinglass indicates that Tron’s Open Interest (OI)—representing the total number of outstanding futures contracts—has increased by 0.96% over the last day to reach $159.54 million. 

Source: Coinglass

This modest uptick in OI often reflects renewed trading activity and could indicate increased market confidence. However, the volume of TRX OI has dropped by 32%, settling at $334.66 million.

This decline highlighted that while more contracts are being held, overall trading activity has slowed, reflecting cautious market sentiment.

From a technical standpoint, TRX has exhibited signs of strength. The daily chart shows a pattern of higher lows, indicating a potential upward trend.

TRX recently bounced from a notable demand zone, hinting at continued positive momentum.

Source: TradingView

Realistic or not, here’s TRON’s market cap in BTC’s terms

While past performance does not guarantee future results, these technical and on-chain signals suggest that Tron may be poised for further gains.

This potential is contingent on market conditions stabilizing and investor interest in its DeFi ecosystem continuing to grow.