Tron's TRX shows resilience as USDT supply hits record highs, hinting at a potential recovery amid market fluctuations. What's driving this trend?

TRX Eyes Recovery as USDT Supply on Tron Soars

Tron's TRX is showing signs of life amid impressive growth in USDT supply on its blockchain. This surge positions Tron as a major player in the stablecoin arena. Let's dive into what's happening.

Tron's USDT Dominance

The total circulating supply of Tether (USDT) on the Tron blockchain has surpassed $80 billion, making Tron the largest network for USDT issuance. This growth has been consistent since late 2020, rocketing from under $7 billion to over $39 billion during the 2021 bull market. By November 2024, Tron overtook Ethereum in overall USDT supply, and it hasn't slowed down since.

Despite this massive influx of stablecoins, Tron's total value locked (TVL) has decreased, from $7.5 billion in January to $4.3 billion. However, decentralized exchange (DEX) volumes tell a different story, with monthly trading volume rising from $4.9 billion in April to $5.5 billion in May. It seems people are actively trading on-chain.

TRX's Price Action and Technical Outlook

As of late June 2025, TRX is trading around $0.27, showing a slight increase over the past 24 hours. While still significantly below its peak of $0.4313 reached in December 2024, the token appears to be consolidating near key support levels. It's hovering just below the 20-day simple moving average but remains above important exponential moving averages, suggesting underlying strength.

Technical indicators present a mixed bag. The Relative Strength Index (RSI) is neutral, while momentum indicators flash buy signals. The MACD, however, is slightly bearish. A decisive break above the 20-day SMA and the $0.28 level could trigger a bullish breakout, potentially retesting the $0.30–$0.32 range. Failure to hold above $0.265 might lead to further losses.

Recent Market Behavior and Correlations

TRX has traded within a range of $0.263 and $0.294 over the past six weeks, demonstrating relative stability compared to other cryptocurrencies. Recent market volatility saw Bitcoin, Ethereum and Solana drop more significantly than TRX. The low correlation (+0.32) between TRX and Bitcoin helps explain this resilience.

Geopolitical tensions and rising oil prices have created market uncertainty, dampening investor sentiment. Despite this, TRX has held its ground.

Tether's Activity on Tron

Recent activity on the Tron blockchain includes 2 billion USDT minted in two separate transactions. Tether CEO Paolo Ardoino clarified that these tokens are for inventory purposes and not for immediate circulation. This minting occurred as Bitcoin recovered above $100,000 and is considered operational rather than a reaction to current market conditions.

Final Thoughts

TRX's resilience, coupled with the massive USDT supply on the Tron blockchain, paints an interesting picture. While challenges remain, the technical outlook suggests a potential for recovery. Will TRX break out, or will it remain range-bound? Only time will tell. But for now, keep an eye on TRX; it might just surprise you!