TRON (TRX) has been making waves in the cryptocurrency market, showing significant growth and narrowing the gap between its market cap and that of Cardano (ADA). As of now, TRX’s market capitalization sits at approximately $22 billion, coming close to Cardano’s $23 billion market cap. A recent 4% weekly gain and a notable 33% increase in trading volume indicate growing investor interest in TRX, suggesting that a potential breakout could enable TRON to overtake Cardano in the near future.

Despite the general downturn in the cryptocurrency market, both TRX and ADA have faced substantial losses. The broader market conditions have led to the shedding of market value by both assets, with TRX losing $14 billion since the last quarter of 2024, while ADA lost over $20 billion in the same period. This has allowed TRX to close in on ADA’s market cap, creating speculation about whether TRON could eventually surpass Cardano, especially if TRX’s consolidation leads to a breakout in the coming months.

Support Levels and Market Behavior

TRX has been hovering around the $0.20 mark, a level it has tested four times since its December peak of $0.44. Meanwhile, Cardano has been holding steady at $0.60, but it has tested this support level only twice. The price action of both cryptocurrencies shows that if the market continues to dip, ADA may face greater challenges in maintaining its support levels compared to TRX, which has shown more resilience in recent weeks.

In terms of derivatives market activity, TRON shows a significant advantage over Cardano. According to Coinglass data, Cardano has been more actively traded in the futures market, with an Open Interest (OI) of $766 million. However, this number has dropped significantly from a peak of $1.12 billion earlier this year. On the other hand, TRX’s futures market has considerably lower speculative activity, with an OI of $195 million. This difference means that TRX is less susceptible to major liquidations, whereas ADA has seen over $2 million worth of ADA longs liquidated over the past 24 hours.

This stability in TRX’s futures market positions it well for potential price growth in the future, particularly in the face of bearish market conditions, where Cardano is more vulnerable to steep losses.

On-Chain Metrics and Network Activity

Looking at on-chain metrics, TRON outshines Cardano in several areas. Cardano has struggled to regain the $1 mark, partly due to a -42.6% year-on-year drop in daily active addresses, which currently sit at just 23,477. In stark contrast, TRX has seen a significant surge in active addresses, growing by 53.1% to 2.6 million. This growth is mirrored by TRX’s fee generation, surpassing 1 million, while Cardano has generated a mere 8.9k in fees. Furthermore, TRON’s decentralized exchange (DEX) volume continues to dominate, with 76.1 million compared to Cardano’s 1.9 million.

These metrics highlight TRON’s superior network activity and adoption, factors that contribute to its increasing strength in the blockchain space. The rise in active addresses, fee generation, and DEX volume all suggest that TRON is gaining significant momentum, positioning itself as a more actively utilized blockchain network compared to Cardano.

Future Prospects for TRX

With the current momentum and improved network activity, TRON is on a clear upward trajectory. If the market conditions improve and TRX’s consolidation period leads to a breakout, it could soon surpass Cardano in market cap. The growing investor interest and TRON’s solid on-chain metrics indicate that TRX has the potential to continue its upward momentum and challenge Cardano’s position as one of the top blockchain networks.

As the cryptocurrency market continues to evolve, TRX’s ability to capitalize on its network activity and increased adoption could drive it to surpass Cardano’s $23 billion market cap, establishing TRON as a dominant force in the blockchain industry.