TRON DAO powers $1.2B in USDT exchange inflows, igniting stablecoin activity and on-chain volume

• TRON DAO facilitates $1.2 billion in USDT exchange inflows over the past seven days as on-chain volume hits $72 billion.
• An increase in USDT exchange inflows suggests that traders are either preparing to buy the dip or could be covering long positions.
• Cryptocurrencies, including TRON, are at the mercy of risk-off sentiment as Trump’s reciprocal tariffs kick in.

TRON DAO network activity has increased in the last week, facilitating over $1.2 billion worth of Tether (USDT) inflows to crypto exchanges in the last seven days. The surge occurred amid the anticipation of reciprocal tariffs announced by United States (US) President Donald Trump on April 2. Global markets crashed as investors reacted to the tariffs announcement, with liquidations in crypto surpassing $1 billion on Monday, as reported by FXStreet.

The announced tariffs kick off on Wednesday, including an expected 104% levy on China. According to a CNN news article, China has promised to fight and is ready to take “resolute and effective measures” to protect its rights and interests.

Bitcoin (BTC) sold off during the American session on Tuesday, sliding from a daily high of $80,823 to $76,198. Altcoins were not spared, as Ethereum (ETH) corrected from $1,617 to a daily low of $1,447. A 3.46% decline in the total market capitalization to $2.43 trillion emphasizes the risk-off sentiment. 

TRON DAO on-chain volume soars to $72 billion

TRON DAO, the network behind TRON (TRX), the eighth-largest cryptocurrency with a market capitalization of $21.7 billion, is playing a crucial role in facilitating stablecoin flows. Stablecoin activity on the network spiked, with daily active addresses surpassing 300,000 per IntoTheBlock data. There was a noticeable surge in the blockchain’s on-chain volume, which hit $72 billion in seven days, the highest since February.

The surge in USDT inflows highlights an intriguing development amid President Trump’s tariff carnage: it suggests a change in trader behavior in the last week.

IntoTheBlock explains that the spike could reflect the need for traders to position themselves for two important possibilities: to buy the dip, capitalizing on recent sharp declines in the crypto market, or to cover long positions amid increasing liquidations in derivatives.

Although it might be too early to pinpoint the motivation behind the surging USDT exchange inflows, the activity emphasizes TRON’s utility and its support of market participants during high-stakes trading maneuvers.

TRON stabilises amid risk-off sentiment

TRON holds onto the edge of a cliff as traders in the crypto market temper expectations this week. The drawdown on Tuesday triggered a sell-off, with TRX correcting 3% in the last 24 hours. Hovering at $0.2276 at the time of writing on Wednesday, TRON faces an uphill battle to reclaim the 50-day Exponential Moving Average (EMA) and the 100-day EMA – a move that could boost upside momentum above the descending trend line in the daily chart. Above this trend line, bulls may launch an offensive, targeting highs at $0.3000. On the contrary, the 200-day EMA will offer support at $0.2171 if selling activities continue.

TRX/USD daily chart

However, bearish sentiment from the Relative Strength Index (RSI) momentum indicator in the daily chart might invalidate the potential recovery, encouraging more traders to short TRX. If TRON price slides below the support zone around $0.21 (in red in the chart above), investors may want to start acclimatizing to TRON trading below $0.2000 and exploring previously tested lower support areas at $0.1800 and $0.1600.