TRON Bucks Bearish Trend: Surging USDT Activity & Drawdown Metrics Fuel Bullish Momentum

While the crypto market bleeds red, TRON flips the script—its USDT dominance and drawdown resilience sparking whispers of an underdog rally.

Stablecoin supremacy fuels the fire

TRON's network isn't just dodging the dip—it's thriving. Surging USDT transactions suggest institutional players might be quietly stacking positions, using the chain as a liquidity highway while others panic-sell.

Drawdown? More like draw-up

That 'risk metric' everyone fears? TRON's eating it for breakfast. The protocol's ability to shrug off market-wide drawdowns hints at a maturing ecosystem—or maybe just traders chasing higher yields than your grandma's savings account.

The cynical take

Let's be real—half of crypto 'fundamentals' are just narratives waiting for a greater fool. But with USDT volumes spiking and TRON's price stability, even skeptics are side-eyeing the charts. Just don't mention the SEC's coffee break.

Reduced Drawdowns Point to Market Maturity

In a recent post titled “TRX Drawdowns Highlight Growing Resilience,” Darkfost shared drawdown analysis as evidence that tron has become structurally more stable over time.

He explained that drawdown metrics, which measure the peak-to-trough decline in an asset’s price, can serve as a reliable tool for identifying strategic market entry points.

Darkfost highlighted four major TRX drawdown periods since 2020: a 61% drop in March 2020, a 70% fall in June 2021, a 55% decline in January 2022, and a 40% decrease in January 2025. Each of these correction phases was followed by significant recoveries.

However, the drawdown depth has consistently decreased with each cycle, a development the analyst interprets as a sign of increasing investor confidence and capital retention in the TRON network.

“With TRX now trading around $0.27, each of these drawdowns has proven to be profitable in hindsight,” Darkfost noted. He added that the trend suggests that TRON is evolving into a more stable asset class with stronger market positioning.

Contributing to this stability is the ongoing flow of capital and growing ecosystem usage, particularly for stablecoin transactions. TRON has become a dominant layer for Tether (USDT) transfers, and data from CryptoQuant analyst Maartunn supports this view.

TRON Surpasses Ethereum in Stablecoin Settlement

In a separate post, Maartunn reported that TRON processed a record $23.4 billion in daily USDT transfers on June 25, 2025, an all-time high for the network. This figure significantly surpasses the $9.9 billion handled by ethereum on the same day, highlighting the divergence between the two blockchains.

Maartunn pointed out that TRON has outperformed Ethereum in USDT transfer volume since mid-2022, noting that the gap between the two networks continues to widen. “The chart doesn’t just show a record; it highlights the growing gap between TRON and Ethereum,” he wrote.

While Ethereum’s USDT activity has declined roughly 39% since its November 2024 peak, TRON remains in an upward trend. This transition signals a growing role for TRON as the main settlement LAYER for Tether transactions, while Ethereum appears to be shifting toward other use cases.

Featured image created with DALL-E, Chart from TradingView