- TRON DAO has seen $1.2 billion in USDT exchange inflows over the past week, with on-chain volume reaching $72 billion.
- The rise in USDT inflows indicates traders may be gearing up to buy the dip or covering their long positions.
- Cryptocurrencies, including TRON, are influenced by risk-averse sentiment in light of the new tariffs imposed by Trump.
In the past week, the TRON DAO network has seen heightened activity, facilitating more than $1.2 billion in Tether (USDT) inflows into cryptocurrency exchanges. This spike comes amidst the announcement of reciprocal tariffs by President Trump on April 2. The global markets reacted negatively, resulting in over $1 billion in liquidations in the crypto sector on Monday.
The tariffs are set to take effect on Wednesday, with a significant 104% tax on imports from China. According to reports, China has vowed to respond forcefully, ready to enact “resolute and effective measures” to defend its interests.
During the American trading session on Tuesday, Bitcoin (BTC) experienced a drop, falling from a peak of $80,823 to $76,198. Altcoins were equally affected, with Ethereum (ETH) declining from $1,617 to a low of $1,447. A 3.46% decrease in total market capitalization to $2.43 trillion underscores the prevailing risk-off sentiment.
TRON DAO’s on-chain volume surges to $72 billion
The TRON DAO, the backbone of TRON (TRX)—the eighth-largest cryptocurrency with a market cap of $21.7 billion—plays a pivotal role in facilitating stablecoin transactions. There has been a significant rise in stablecoin activity on the network, with daily active addresses exceeding 300,000, according to IntoTheBlock data. The blockchain’s on-chain volume accelerated to $72 billion in a week, marking the highest level since February.
Over $1.2 billion worth of USDT flowed into exchanges via the @trondao network over the past seven days, emphasizing Tron’s role in facilitating efficient stablecoin flows.
This uptick suggests traders are positioning to buy the dip or cover long positions. pic.twitter.com/xyZquDx9XO
— IntoTheBlock (@intotheblock) April 9, 2025
The increase in USDT inflows presents an interesting trend in the wake of the tariffs: it may indicate a shift in trader strategies over the past week.
Analysis suggests that this trend could reflect traders positioning themselves for two key scenarios: capitalizing on recent downturns by buying the dip or securing long positions in the face of escalating liquidations in derivatives.
While it might be premature to determine the precise motivations behind the rising USDT exchange inflows, this activity highlights TRON’s utility and its support for market participants during intense trading conditions.
TRON stabilizes amid risk-averse sentiment
TRON is currently treading a precarious path as traders adjust to expectations this week. Tuesday’s downturn instigated a sell-off, with TRX declining by 3% in the last day. As of Wednesday, with TRON trading around $0.2276, it faces challenges in reclaiming both the 50-day and 100-day Exponential Moving Averages (EMA)—a recovery that could propel momentum above the descending trend line on the daily chart. Should it break above this line, bullish momentum might target resistance levels around $0.3000. Conversely, continued selling pressure could see the 200-day EMA offering support at $0.2171.
TRX/USD daily chart
Nevertheless, the bearish sentiment reflected in the Relative Strength Index (RSI) on the daily chart may jeopardize any potential recovery, prompting more traders to take short positions on TRX. Should TRON’s price fall below the support zone near $0.21, stakeholders might need to prepare for trading below $0.2000 and may want to explore previously tested lower support levels at $0.1800 and $0.1600.