- Tron outperforms most rival networks in TVL
- However, TRX faces resistance in its attempts to break above its 50-day MA
The Tron network can be considered one of the blockchains that have managed to achieve remarkable growth so far this year. The network is poised to end 2022 on a positive growth trajectory after dethroning Binance Smart Chain to become TVL’s second-largest crypto network.
Read Tron’s [TRX] price prediction 2023-2024
The total value of locked Tron recently surpassed the $4.39 billion mark, putting it slightly above the BSC of around $260 million. This achievement puts Tron second on the list after Ethereum [ETH] which has over $23 billion in TVL. However, this achievement speaks volumes about Tron’s journey, as well as the future of its native cryptocurrency, TRX.
– TRONDAO (@trondao) December 17, 2022
Tron’s higher ranking in terms of TVL may translate into higher demand for the network. In other words, it means investors might have high hopes in the ecosystem. Additionally, it could result in higher demand for TRX over time and positive sentiment.
If this ends up being the case, it could lead to stronger demand for TRX in the long run.
But what about the short-term performance of TRX?
An analysis of TRX’s market capitalization revealed that it was down around $360 million in the last four days. Nonetheless, this represented a slight recovery of $170 million in the past 24 hours.
However, can this market capitalization show some stability in growth over the next few days? Perhaps weighted sentiment can tell us a thing or two about how investors feel about TRX.
The sentiment-weighted gauge revealed that collective investor sentiment favored the bears over the past three days.
The lower weighted sentiment also favored the bears and reflected watching news time with TRX’s price action. The cryptocurrency has been on an overall upward trajectory since mid-June.
However, it faced selling pressure, especially after coming into contact with its 50-day moving average. Unsurprisingly, TRX price struggled against resistance with every attempt to break above the 50-day MA.
Can TVL performance be more in demand?
TRX’s press time outlook based on price action confirmed that the bulls are going through a tough time. On the other hand, Tron’s growing TVL did not underline an increasingly strong network position. In an ideal world, such a development should encourage favorable investor sentiment.
However, one could only wait and watch to see if that would be the outcome over the next few days.