Tron’s First Quarter of 2024 Was Strong – Will the Second Quarter Be Similar?
Journalist
- Tron made tremendous progress in the DeFi sector in Q1 but was unable to repeat the same in Q2
- Activity on Tron has increased quarter-on-quarter, however
According to recent data, Tron [TRX] was able to perform extremely well in Q1 2024 despite strong competition from other Layer 1 networks.
The DeFi Scene
One of the key areas where Tron performed well was in the DeFi sector. In fact, data showed that TRON’s Total Value Locked (TVL) crossed the 11-digit mark in Q1, increasing 25% quarter-on-quarter from $8.1 billion to $10.1 billion. Towards the end of Q1, TRON maintained its position as the second highest network by TVL, overtaking BNB Chain ($7.2 billion) by nearly $3 billion.
In addition, TVL denominated in TRX also saw a quarter-on-quarter increase, rising 8% from $76.4 billion to $82.5 billion. This growth seemed to underscore TRON’s continued dominance and resilience within the DeFi landscape.
However, while TRON was able to see an uptrend in Q1, the same could not be said for Q2. In recent weeks, for example, the TVL for TRON has dropped significantly, falling below the $9 billion mark.
Network Activity
In Q1, average daily transactions on TRON remained relatively stable, recording a modest 1% quarter-on-quarter decline from 4.9 million to 4.8 million. Notably, this figure remained below the levels seen during the same period last year, with Q1 2023 recording an average of 7.1 million transactions per day.
In addition, average daily activity of active addresses showed little change both over the past year and the past quarter. In Q1, there were an average of 1.5 million active addresses daily, a marginal increase of 4% quarter-on-quarter.
After two consecutive quarters of decline, average daily new addresses in Q1 saw a modest 2% increase from the previous quarter, rising from 184,500 to 187,800. Approximately 12% of all active addresses in Q1 were newly created, a figure that remained stable from the previous quarter. Over the past year, TRON has consistently seen around 195,000 new addresses added daily.
However, things took a turn for the better in Q2, with daily active addresses on the network and transaction activity increasing. If TRON manages to maintain this momentum, it would be beneficial for both the protocol and the token’s price movement.
