TRON has reached a major milestone in the stablecoin market but TRX price seems to be struggling to gain momentum.
According to DeFiLlama data, as of May 7, there are $71.9 billion in stablecoins on the network, setting a new record for TRON’s (TRX) stablecoin supply. This increase comes after Tether (USDT) minted another $1 billion USDT on May 6, marking the sixth billion-dollar mint on TRON since April.
TRON’s ecosystem as a whole is also thriving. The monthly decentralized exchange volume increased by 40% from $3.4 billion in March to $4.9 billion in April. TRON’s total value locked has slightly recovered, rising from about $4.4 billion in March to just over $5 billion now. The network has surpassed 302 million accounts and 10 billion transactions, processing up to $19 billion in daily USDT transfers.
On May 1, World Liberty Financial announced that TRON now offers its USD1 stablecoin, which is backed by U.S. Treasuries and cash equivalents. In addition to increasing institutional participation, this expands the list of stablecoins.
Other developments include P2P.org being approved as a TRON Super Representative, allowing the staking provider to help validate blocks. In April, Canary Capital also filed for a spot TRX ETF that includes staking, showing further interest from traditional finance.
TRX’s price is still under pressure despite these solid fundamentals. TRX is currently trading around $0.243 and is having difficulty breaking above the $0.25 resistance level after falling 6.2% over the last day. Technical indicators show mixed signals.
The majority of moving averages and the moving average convergence divergence indicate bearish pressure, but momentum and Bull Bear Power indicate some buying strength. The relative strength index is at 49, indicating indecision.
TRX may move toward $0.235 or lower if it breaks below support at $0.240. On the upside, a clean break above $0.25 could could open the door to higher levels. Justin Sun, the founder of TRON, has stated that he believes TRX will hit a new all-time high in Q2, pointing to the market’s rising maturity and citing its growing correlation with Bitcoin (BTC).
