New data from CryptoQuant reveals insights on the Total Value Locked (TVL) dynamics in the TRON ecosystem, indicating a surge in on-chain liquidity.
TVL measures the total capital in TRON-based protocols, especially in lending platforms, influencing TRX price movements and user confidence.
Rising TVL can boost on-chain liquidity and support higher TRX prices in the short term, while falling TVL signals capital outflows and increased risk aversion.
CryptoQuant warns that excessive greed reflected in sharp TVL spikes may indicate market tops rather than sustainable growth, emphasizing the need for cautious analysis.