Tron (TRX) has recently begun to show many signs of stagnation, raising the question of whether this is just a temporary 'form' or a trend that could affect the long-term performance of the project.
Over the last 4 weeks, TRX has been almost pinned down in a narrow trading range. In May alone, this altcoin recorded an increase of only 3.18% from the opening price to the closing price - a relatively modest result compared to the impressive growth of many competitors in the same segment. Moving into May, TRX continues to maintain a similar trend with signs of weak demand and increasing selling pressure. At the time of writing, TRX is trading around 0.25 USD and has been almost sideways for the past two weeks.
TRX price chart | Source: TradingView
This 'lethargic' price movement indicates that TRX is struggling to attract new capital - which is quite unusual considering it previously overcame selling pressure in the first half of April.
DEX volume plummets: A sign of market cooling?
Not only is TRX's price stagnating, but the Tron network is also witnessing significant declines in several important performance indicators.
Among these, trading volume on DEX (decentralized exchanges) is a useful measure to assess the dynamism of the ecosystem. For Tron, this metric had surged in April, but has quickly cooled down recently - indicating a decline in trading activity.
DEX volume on the Tron network | Source: DeFiLlama
Specifically, daily DEX trading volume on Tron once peaked at 292.34 million USD on April 26. However, in the last 24 hours, this figure has sharply dropped to only 72.08 million USD. Part of the reason may stem from caution during the transition period between the old month and the new month - a time often accompanied by unpredictable volatility. Additionally, the initial growth in April may be gradually cooling down.
However, it is also important to note that TRX's price remains within a narrow range, so it cannot be confirmed that TRX is the direct cause of the decline in trading volume. However, in contrast to DEX volume, the number of transactions on the Tron network remains stable. Over the past two months, data recorded transaction volumes consistently ranging from 7 to 9 million transactions per day.
Is it just a short breath or a harbinger of long-term risk?
The decline in DEX volume may reflect deeper concerns about Tron's competitive ability. Therefore, it is necessary to further consider other underlying performance factors, especially Total Value Locked (TVL) - an indicator that measures the level of trust and value locked in the DeFi ecosystem.
Typically, a strong increase in TVL indicates long-term confidence in the project, while a decrease signals investor caution. On-chain data shows that Tron's TVL has sharply decreased from December 2024 to mid-May 2025, dropping to a low of around 4.3 billion USD. However, the positive signal is that since then, this metric has rebounded back above 5 billion USD, indicating that the network has stopped the 'bleeding' of assets locked in DeFi.
TVL and stablecoin capitalization chart on Tron | Source: DeFiLlama
However, it should also be noted that this recovery is occurring quite slowly. In fact, not only Tron is experiencing this situation. Ethereum has also recorded a sharp decline in TVL, and the recovery process is not impressive.
Bright spot
the biggest lies in the market capitalization of stablecoins on Tron. Since the beginning of 2025, this metric has grown significantly, potentially helping to bolster confidence for TRX investors, as stablecoins are a major revenue source for the Tron network.
In terms of on-chain revenue, Tron still shows significant resilience. In the last 5-day average, Tron generated more than 1.7 million USD per day.
The combination of recovering TVL, stable revenue, and increasing stablecoin capitalization could instill confidence in the Tron community. However, the big question still remains: Will the demand for TRX return in May? Or will the entire market witness a deeper correction due to a lack of real growth momentum?
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making decisions. We are not responsible for your investment decisions.
