Foreign media reports indicate that TRON's on-chain activity has continued to rise this year, with increases in transaction volume, daily active users, and market capitalization compared to the beginning of the year. However, sentiment in the derivatives market has not improved accordingly, with limited expansion of open interest and funding rates even turning negative at one point, suggesting that short-term traders remain cautious.
Data continued to rise from January to May.
Looking at on-chain data, the number of monthly transactions on TRON increased from approximately 341 million in January to approximately 376 million in May, indicating no significant slowdown in on-chain activity. During the same period, the average daily active users increased from nearly 3.2 million to 4.4 million, suggesting that the increase in usage is not merely a short-term phenomenon driven by price fluctuations.
The article argues that TRON's market capitalization rose from approximately $27 billion to $33 billion during the same period, which is related to its use cases in low-cost, fast stablecoin transfers. This is also one of the important reasons why the market continues to pay attention to the network.
TRX reserve increases provide support
The report noted that Tron Inc. increased its holdings by 1.2 million TRX in June, bringing its total holdings to over 700.4 million. This increase occurred during a period of price weakness, reflecting that some funds continued to allocate during the pullback.
However, this buying momentum has not completely changed market sentiment. The article points out that there is still a gap between the current improvement in on-chain fundamentals and the attitude of derivatives traders.
Negative funding rates dampen sentiment.
As of press time, TRX open interest stood at approximately $202 million, indicating continued market participation, but with little new capital inflow. More noteworthy was the negative funding rate at the time, which typically signifies a bearish short-term position structure or a lack of confidence among traders regarding future price movements.
TRX is priced at approximately $0.32, showing a slow recovery after falling from its previous high. The article mentions that some technical indicators suggest selling pressure may have eased, but this is not yet sufficient to indicate a clear market reversal.
Overall, on-chain data for TRON continues to grow, but for TRX to further improve market sentiment, it needs to provide stronger signals in price and derivatives data. Until then, traders will likely remain cautious.
