Tron (TRX) maintains an 8-week bullish trend: What is the driving force behind it?

Tron (TRX) has been solidly in the leading coin group for the past 6 months. However, the question arises: will this coin be able to maintain its impressive performance, especially as the "altcoin season" is gradually starting?

This week, Ethereum (ETH) is capturing the entire "spotlight" in the market, but TRX also shows that it is not inferior. For example, long-term investors holding TRX from exactly one year ago are currently seeing an increase of about 41%, just slightly lower than the 42% of ETH during the same period.

The TRX bull faction also demonstrated strength in the short term as it aimed for 8 consecutive weeks of increases, with about 37% of the year's profits concentrated during this period. Notably, the upward momentum has been maintained since TRX entered the overbought zone in mid-July, clearly reflecting the increasingly prominent position of this leading coin in the altcoin ecosystem.

Weekly TRX/USDT Chart | Source: TradingViewIn terms of "dominance", TRX has maintained a sideways trend since April, indicating that the demand from the altcoin season is not yet the main driving force. This implies that new institutional money is playing the primary role of momentum. And if this scenario continues, the TRX bulls could very well continue to dominate when the altcoin season truly explodes, especially in the context of retail capital beginning to flood into the market.

The deflationary model of Tron can support TRX price in the long term

The token supply is always a key factor determining value, and with TRX, the advantage lies in its outstanding deflationary characteristic. This is also the reason why this coin is increasingly favored by long-term investors.

According to data from CoinMarketCap, Tron currently has around 94.68 billion TRX in circulation. Notably, this network has one of the strongest deflationary models in the cryptocurrency market, with nearly half of the total supply having been permanently burned.

Burning rate of TRX | Source: CryptoQuantThis mechanism causes the supply of TRX to continuously shrink, increasing its scarcity over time. Notably, the deflationary process of TRX is not an automatic mechanism but is tied to the actual demand of the network: the more transactions and applications, the larger the amount of tokens burned. On average, Tron has removed over 1 billion TRX each month in most months of 2025.

The correlation between network activity and the TRX burn rate has opened up the need for deeper analysis of Tron’s operational performance.

Tron adds over 2 billion USD to TVL

Key indicators show that the TVL (total locked value) of Tron has surged from 4.36 billion USD (24/6) to 6.67 billion USD according to the latest data, equivalent to an additional increase of about 2.31 billion USD. This is a strong signal indicating that investors remain steadfast with the long-term holding strategy.

The TVL and DEX volume of Tron | Source: DeFiLlamaThe DeFi ecosystem of Tron maintains stability, but the level of activity still cannot compare to major competitors like Ethereum. For example, on August 13, the trading volume on Tron’s DEX platforms reached about 132 million USD, while Ethereum exceeded 9 billion USD.

However, TRX has cleverly compensated for this limitation with a breakthrough in the stablecoin sector. The number of active addresses on the network has reached nearly 588,000, clearly reflecting the heat of the ecosystem.

In particular, on-chain transaction data has significantly increased continuously over the past 4 months, indicating that Tron is attracting an increasing demand for network usage – a factor that could lead to demand for TRX.

Tron Network Transaction | Source: DeFiLlamaThis significant advantage primarily comes from the impressive adoption of stablecoins, which has helped TRX rise to the group of leading digital assets favored by investors today.

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