Can Tron [TRX] Maintain Dominance Amid Rising Leverage and Retail Retreat?

Tron [TRX] continues to assert itself in the cryptocurrency space, fueled by a surge in whale accumulation and a solid DeFi ecosystem.

• Tron’s USDT dominance grows as new wallets rise and whales increase accumulation.

• Bullish Futures bias and steady DeFi TVL reinforce TRX’s upward momentum despite minor dips.

This analysis explores Tron’s position in the cryptocurrency market, focusing on whale activities, DeFi stability, and user engagement trends.

Are user metrics keeping up with Tron?

While TRX’s on-chain activity is thriving, address metrics paint a mixed picture.

New Addresses rose by 1.53% this week, but Active Addresses slipped by 0.76%, and Zero Balance Addresses dropped by 2.24%.

These trends suggest that although onboarding continues, some previously active users have reduced participation.

Nevertheless, the overall address count remains elevated, and TRX’s price recovery above $0.26 suggested growing user confidence despite occasional activity lapses.

Source: IntoTheBlock

Institutional confidence rising in TRX?

Interestingly, whales upped their holdings by 0.79% over the past 30 days, even as investors and retail holders reduced their shares by 3.09% and 1.93%, respectively.

The shift in supply concentration implies that larger players are positioning for long-term value, while smaller participants may be booking profits.

Historically, such whale-led accumulation phases tend to precede bullish continuation.

Therefore, the growing dominance of top holders could offer a bullish tailwind for TRX if demand remains elevated.

Source: IntoTheBlock

Bullish conviction or over-leveraged risk?

Futures data from Binance indicated that 84.33% of accounts hold long positions in TRXUSD perpetuals, with a Long/Short Ratio of 5.38.

This aggressive bullish tilt shows strong market conviction but also raises the risk of a potential long squeeze if momentum falters.

Despite recent volatility and a -2.41% daily price drop to $0.2684, leverage remains concentrated on the upside.

While this may drive further rallies, sudden liquidations could lead to sharp corrections. Therefore, traders should remain cautious as sentiment heats up.

Source: CoinGlass

Is TRX’s DeFi ecosystem stable enough?

Tron’s Total Value Locked (TVL) in DeFi stood at $6.861 billion, despite a slight 24-hour decline of 0.69%.

The network maintains its top-tier position in DeFi rankings, largely driven by stablecoin-based dApps and staking products.

TRX’s DeFi strength continues to attract capital and users, giving the network a base to weather broader market swings.

Therefore, this strong base of locked capital provides critical support for TRX price movements and network resilience in the face of volatility.

Source: DefiLlama

Can TRX sustain its dominance?

Tron’s dominance in the USDT space remains robust, with rising transaction volume, strong whale interest, and stable DeFi activity.

However, minor dips in user activity and high derivatives leverage call for cautious optimism.

If the network sustains growth across all fronts, it could remain the preferred settlement layer for stablecoins globally.