Joao Wedson Flags $2B Drop in TRON TVL as DEX Usage Falls and Users Pivot to Non-DeFi dApps Despite Price Surge

On June 10, Joao Wedson, CEO of Alphractal and a crypto author at CryptoQuant, highlighted a shift in the TRON ecosystem. Through X-post, he reported that the TRON TVL in lending protocols plunged nearly $2 billion. This sudden drop pushed the 14-day change into negative territory. Wedson also noted that this decline occurred despite TRX’s continued price appreciation. He warned, “It’s worth keeping a close eye on upcoming developments.” He further suggested the trend could reflect a strategic capital shift or reduced interest in lending, indicating deeper structural changes.

TRON TVL Drop Contrasts with Price Growth

The TRON TVL currently stands at $4.89 billion, marking a sharp fall from earlier levels. This drop in lending protocol value contrasts with TRX’s upward price momentum. As of June 6, TRX traded at $0.2729, up nearly 12% over the month. However, weekly performance showed a 1.5% dip. 

Source: Joao Wedson X Post on June 10, 2025

Historically, similar TVL declines aligned with bullish TRX price trends. In early 2024, lending slowdowns did not hinder price rallies. However, the current disconnection between reduced lending activity and price growth has drawn renewed scrutiny. The warning from Wedson comes amid wider speculation on whether TRON’s lending sector is losing relevance or undergoing fundamental changes.

DeFi Participation Slows TRON TVL Despite User Surge

TRON’s DEX trading volume saw a sharp fall from $213.45 million on June 5 to just $80.8 million. This 62% drop signals waning DeFi activity, even as user participation rises. Daily active users grew from 2.8 million to 4.6 million, while daily transactions exceeded 11 million. Most transactions occurred outside centralized exchanges, suggesting growth in peer-to-peer transfers or dApp usage. However, this activity has not boosted lending protocols or DEX involvement. The current TRON TVL trend confirms the disconnect between user metrics and financial protocol growth. The stagnant TRON TVL, despite rising network usage, may reflect a shift toward non-financial applications. It could also indicate institutional caution in using lending platforms.

Active Network Metrics Reach Record Highs

TRON’s on-chain activity remains robust. Daily transaction volume recently surpassed 8 million. Average daily transactions increased by about 2 million since February, showing over 30% growth in four months. Active address metrics also showed strength. Both 50-day and 100-day moving averages for active addresses hit record highs. These figures confirm steady user engagement, supporting TRX’s broader utility beyond financial tools. 

Source: CoinMarketCap Data on June 10, 2025

The increased peer activity may explain the recent resilience in TRX’s price. Current trading levels hover around $0.28, recovering from a $0.20 support level seen in February. The token also broke out of a triangle technical pattern, suggesting bullish sentiment, though the RSI shows bearish divergence.

Smart Money Accumulation Signals Long-Term Optimism

Recent smart money movements also shed light on the evolving TRON landscape. OTC traders accumulated about $1.27 million worth of TRX in the past week. Exchange flow data revealed more tokens moving off centralized platforms, indicating a trend of accumulation. This data hints at growing investor confidence in TRX’s long-term potential. However, the stagnation in TRON TVL shows that institutional players remain cautious in the lending space. The divergence between user growth and DeFi usage raises questions about the future focus of the ecosystem. The current momentum supports price appreciation, but the foundational DeFi layer appears under pressure.

What Lies Ahead for TRON

The rising number of users and transactions suggests growing adoption of TRON’s blockchain. Increased peer-to-peer transfers and dApp engagement reflect broader utility. However, the TRON TVL decline and DEX pullback indicate limited financial use case adoption. The market awaits clearer signals. If lending TVL remains suppressed, deeper structural issues may emerge. A continued rise in user activity without matching DeFi growth could reshape TRON’s direction. Monitoring institutional sentiment and upcoming protocol updates will be key in the coming weeks.

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