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Daily Users Dominance: Can TRON’s Blockchain Lead Trigger Turnaround?

Last Updated March 20, 2024 2:02 PM
Valdrin Tahiri
Last Updated March 20, 2024 2:02 PM
By Valdrin Tahiri
Verified by Peter Henn

Key Takeaways

  • TRON leads the blockchain space with 1.8 million daily users, outpacing both Solana and BNB Chain.
  • On-chain activity is ramping up as evidenced by the Total Value Locked and transaction count.
  • Can this increased on-chain activity take the TRX price above the final hurdle at $0.14?

Despite Solana’s stratospheric rise, the TRON blockchain has overtaken it based on the number of daily users. TRON is favored by users for its low fees and fast times. The majority of transactions in the blockchain are for small amounts, which would be overshadowed by the gas fees in another blockchain such as Ethereum.

This increased activity has yet to translate to a price increase. The TRX price has stalled since reaching a high of $0.145 in February. This discrepancy leads to the question: Can TRON’s current on-chain momentum drive the price to new highs this summer?

TRON Leads Blockchain With Daily Users

A recent tweet by Coin98 Analytics noted that TRON is the blockchain with the most daily users  at 1.8 million. It is followed by Solana, BNB Chain, Ronin and Polygon. The number of daily users encompasses the number of unique sender addresses.

Despite leading all other blockchains, this number is not an all-time high for the TRON blockchain. Rather, that was reached in June 2023 with more than 3.45 million active addresses.  Active Addresses account for only 2% of the total address count .

Number of Active Addresses on Tron
Active Addresses on Tron: Credit – Messari

It is also worth noting that, despite the TRX price not having reached an all-time high yet, the market capitalization for TRX reached an all-time high of $12.57 billion on February 28, 2024. This happened because TRX does not have a supply cap .

TRX Market Cap All-Time High
TRX Market Cap: Credit – IntoTheBlock

During the TRX price all-time high of $0.18 in April 2021, there were slightly more than 71 billion TRX in circulation. Currently, there are nearly 88 billion TRX. This added supply more than makes up for the price difference and led to the all-time high in market cap.

On-Chain Activity Ramping Up

Alongside the number of daily users, on-chain activity on the TRON blockchain is ramping up. Total Value Locked also reached an all-time high in March. More than $7 billion of it is from the JustLend DAO , TRON’s decentralized financial platform where users yearn yield by supplying assets, can stake TRX and can borrow digital assets with collateral.

Tron Total Value Locked All-Time High
Total Value Locked for Tron: Credit – DeFiLlama

The Transaction count  is increasing and is at 5.38 million. This is still not at its all-time high of 9.42 million transactions from March 2023. Nearly two million of these transactions are $10 or under, while 14 are above $1 million.

With this increased on-chain activity, the TRX price is also knocking on the door of a new all-time high.

TRX Price Prediction: New All-Time High This Summer?

The TRX price has increased alongside an ascending support trend line since the start of the year. The price bounced at this trend line for the final time in August 2023 (green icon) and accelerated its rate of increase.

The upward movement led to a high of $0.145 in February. At the time, TRON’s founder Justin Sun revealed that he owns more than 28,000 BTC, drawing scrutiny from the SEC.

The price has fallen since and returned to the $0.115 support area this week, where it initiated a bounce.

TRX Price Approaches All-Time High
TRX/USDT Weekly Chart: Credit – TradingView

Despite the decrease, the weekly RSI is still above 50. It has been above this level since the start of the upward movement (green circle). So, the trend can be considered bullish as long as the weekly RSI does not close below 50.

With the price action and RSI readings, the most likely outlook will be consolidation between the $0.115 and $0.14 range before an eventual breakout takes the price to a new all-time high.

Conversely, the next closest support is created by the ascending support trend line at $0.100.

TRX Price Positioned Well for Continuation

TRON is the blockchain with the most daily users and on-chain activity is ramping up, as evidenced by the all-time high in TVL and upward trending transactions. The price has found support above an important horizontal support level and could start an upward movement from here.

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