Tron Price Retreats Amid Falling Ecosystem Growth and Open Interest

Tron price has declined over the past eight days, signaling a slowdown in the ecosystem’s recent momentum.

As of Monday, September 2, Tron (TRX) was trading at $0.1565, representing a decline of over 7% from its peak this year. This downturn has reduced Tron’s market capitalization to approximately $13.5 billion.

Decline in Tron’s Key Performance Metrics

Despite the recent drop, Tron has been one of the top-performing major cryptocurrencies, having surged over 44% from its August lows and reaching a record high of $0.1690. This strong performance was driven by significant events within the ecosystem, most notably the launch of SunPump, a meme coin generator. In less than three weeks, SunPump has facilitated the creation of thousands of memes, generating close to $50 million in fees. The collective market capitalization of all meme coins within the Tron ecosystem now exceeds $493 million.

However, recent indicators suggest that the Tron ecosystem is losing steam. Sundog (SUNDOG), the largest meme coin in the network, has declined by over 24% from its August highs. Other tokens, such as Suncat, SunWukong, FoFar, and Dragon Sun, have also seen significant declines, each dropping over 50% in the past week.

Further data reveals a drop in Tron’s total value locked (TVL) in its decentralized exchange (DEX) network, down 8% to $8.1 billion over the last seven days. Additionally, the trading volume on Tron’s DEXs has decreased by more than 21% in the same period.

Decline in Open Interest Signals Caution

Tron’s open interest in the futures market has continued to fall, reaching $141 million on September 2, down from a peak of $234 million in August. Despite these setbacks, Tron remains one of the most popular blockchain networks, generating over $1.1 billion in revenue this year, making it the second most profitable blockchain in the industry. The network holds over $59 billion in stablecoins and has 2.24 million active addresses.

Outlook for Tron Price

Tron’s price has been on an upward trajectory since its 2021 lows, demonstrating less correlation with Bitcoin compared to other cryptocurrencies. After hitting a record high of $0.1690 last month, Tron has now retreated to $0.155. Nevertheless, it remains above the 50-day and 200-day Exponential Moving Averages (EMA) and a key resistance level at $0.1451, which was its highest point in February.

Given these technical indicators, there is a possibility that TRX may decline to the psychological support level of $0.15 before resuming its bullish trend. A further upside will be confirmed if Tron surpasses its year-to-date high of $0.1690.

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