Is Tron Toast? Network Activity Crumbles As Crypto Cools Off
Professional:
Tron's Q4 report shows strong growth in its DeFi sector, with a 41% increase in Total Value Locked (TVL), putting it in second place after Ethereum. However, the network experienced a slowdown in user growth, with daily active addresses and new user creations declining by 2%. The number of new addresses created also fell by 2% to 185,000. This resulted in a 2.4% drop in transactions and a 6% decrease in transaction fees compared to Q3. Despite the subdued user activity, Tron's DeFi sector saw significant growth, with a 20% increase in TVL and a 42% increase in decentralized exchange trading volume. The reasons behind the decline in user engagement and new addresses created need further investigation. Tron's ability to bridge the gap between its thriving DeFi sector and sluggish user activity remains uncertain.
Easy :Tron is a company that makes a special kind of money called cryptocurrency. They recently did a report to see how well they are doing.
In the report, they found out that Tron is really good at something called DeFi. This means that a lot of people are using Tron's cryptocurrency to do cool things. Tron is the second most popular company for DeFi, right after another company called Ethereum.
But, there is also some bad news. Tron noticed that not as many people are using their cryptocurrency as before. The number of people making new accounts and using Tron's cryptocurrency went down by 2%. This made less people use Tron's cryptocurrency to do things and also made Tron lose some money.
Even though not as many people are using Tron, they found out that the people who are using it for DeFi are doing it a lot. The amount of Tron's cryptocurrency used for DeFi went up by 20%. That's a lot!
Overall, Tron is happy that people like to use their cryptocurrency for DeFi, but they also want more people to use it. They need to figure out why less people are using it and how to make it more popular.
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