Tron's TVL Continues to Soar, TRX Coin Exhibits Contrarian Trend

On September 20th, according to the latest data, the Total Value Locked (TVL) on the TRON blockchain continues to rise and has reached a new all-time high of $15.6 billion, making TRON the second-largest blockchain network in terms of TVL globally, second only to Ethereum.

Changes in TRON's Total Value Locked (TVL), Source: TRONSCAN.

TVL, which stands for "Total Value Locked," refers to the total value of locked assets in a specific decentralized finance (DeFi) platform or protocol, usually expressed in USD.

TVL is an important indicator used to measure the popularity and activity of specific DeFi platforms or protocols. A high TVL is often seen as an indication that the platform or protocol has attracted a significant amount of crypto assets, demonstrating users' trust and participation in their services and products.

For TRON, the continuous increase in TVL has propelled it to the global second position, indicating its popularity and active usage within the blockchain network. Additionally, a higher TVL can generate more revenue for the network, which is one of the reasons why TRON's native token, TRX, exhibits a contrarian trend and is able to rise against the market.

In May 2021, during a market downturn, TRX demonstrated resilience compared to other cryptocurrencies such as BTC and ETH. While TRX experienced a drop from its highest point of $0.17 to a low of $0.04, a decrease of 76%, BTC and ETH experienced larger declines of 78% and 82%, respectively.

【TRX Daily Price Chart, Source: TradingView】

Furthermore, while many coins, including mainstream ones like ADA and SOL, continued to set new lows in 2023, TRX not only remained above its 2021 low but also exhibited a strong rebound, rising from $0.04 to $0.12, an increase of 200%.

Since the beginning of 2023, most cryptocurrencies have remained at their bottoms or even set new lows, except for BTC and ETH, which have experienced some rebound. However, TRX has shown a second major rebound, maintaining around $0.08, not far from its previous bull market high of $0.17.

In the absence of significant market movements, it may be challenging for TRX to enter a full-fledged bull run. Nevertheless, based on TRX's performance over the past year, characterized by wide fluctuations and strong rebounds, it can be considered as a short-term trading option during this bear market phase, with a potential switch to other mainstream coins next year.