A deflationary model is among the reasons for TRX’s performance.
Tron network’s native cryptocurrency TRX, has secured a spot among the top coins in the last 6 months. But will it sustain the same momentum, especially now that altcoin season is at play?
Ethereum has been stealing the show this week, but TRX has somewhat kept toe-to-toe in some instances. For example, bags by long-term holders who acquired TRX exactly 12 months ago were up about 41%. ETH was up 42% during the same 12-month duration.
Tron coin bulls also maintained a strong momentum in the short term. For reference, the cryptocurrency was on track to deliver its 8th consecutive week in the green. In fact, most of the gains in the last 12 months occurred during this period (about 37%).
TRX maintained its momentum well into oversold territory since mid-July. Its performance was also a reflection of its dominant position in the altcoin hierarchy.
Speaking of dominance, TRX maintained an overall sideways trend since April. This suggested that the cryptocurrency’s altcoin season-related demand had little to do with the momentum.
This could indicate that institutional demand was mostly responsible. It could also indicate that TRX bulls may continue to dominate now that altcoin season has started, especially as retail liquidity makes its way into the market.
Token supply is always a major factor in determining price. Another potential reason why TRX has been gaining popularity among long-term holders is its deflationary characteristics.
Tron had a circulating supply of $94.68 billion at the time of observation, according to CoinMarketCap. Recent reports revealed that the network had one of the most aggressive deflationary models in the crypto market.
The report also indicated that almost half of the current supply has already been burned. This aggressive deflationary feature means the token’s supply gets lower over time, which in turn boosts its scarcity.
Moreover, the deflationary characteristics were driven by network utility. The higher the utility, the more coins burned. Tron averaged over 1 billion in burned TRX coins every month for most months in 2025 so far.
The claim that network activity was tied to the TRX coin’s higher burning rate warranted a deeper dive into the Tron network’s performance.
Some of Tron’s key performance metrics revealed that Tron’s TVL grew from $4.36 billion on 24 June to $6.67 billion as per the latest data. This growth, which amounted to roughly $2.31 billion, meant that holders maintained a long-term focus.
Tron’s DeFi ecosystem maintained healthy but relatively low activity compared to rivals like ETH. For context, DEX volume on 13 August amounted to roughly $132 million. For reference, ETH DEX volume during the same period was well over $9 billion.
Tron (TRX) coin more than made up for the relatively weak DEX figures with aggressive network adoption through stablecoins. Active addresses on the network almost surged as high as $588,000 at the time of observation.
Network transaction figures made a more accurate representation of how much activity was on the Tron network. Tron’s network’s transaction activity has been rising aggressively in the last 4 months.
Transaction data disclosed an aggressive uptrend, which confirmed that it was enjoying more network utility. This may have also trickled down into TRX demand.
Tron secured this impressive lead thanks to heavy stablecoin adoption. This also meant TRX was among the most preferred coins among investors considering its performance.
Read more on The Coin Republic
