Key Points:
- Tron’s TVL dropped from $6.71B to $4.96B amid declining DeFi engagement.
- USDT circulation on Tron hit record highs, surpassing Ethereum in transfer volume.
- TRX rose over 3% after USD1 stablecoin launch
Fall in TVL
Tron’s DeFi ecosystem is showing signs of stress as its Total Value Locked (TVL) declined from $6.71 billion at the end of May to $4.96 billion, according to DeFiLlama, at the time of reporting. This drop in locked value coincides with a 6.1% decline in TRX, Tron’s native cryptocurrency, over the past 24 hours, based on data from CoinMarketCap.
Despite being the fifth-largest blockchain by TVL, Tron’s recent drop suggests shifting user behavior within its DeFi ecosystem. Users appear to be withdrawing funds from lending pools, staking platforms, and liquidity farms possibly due to falling yields, better returns on competing chains, or concerns about platform-specific risks.
Record USDT Circulation on Tron
In a surprising contrast to the falling TVL, USDT (Tether) circulation on Tron has reached an all-time high, even surpassing Ethereum (ETH) in transaction volume.
USD1 Catalyst
On June 11th, 2025, the first official minting of the USD1 stablecoin took place on the TRON blockchain. The announcement was made by Tron founder Justin Sun. TRX climbed 3.2% after the announcement. According to CryptoQuant and on-chain analyst JA_Maartun over $1 billion worth of USD1 has been minted on Tron.
Conclusion
Tron continues to lead in stablecoin transactions, yet its DeFi foundation is showing signs of weakness. The growing disconnect between high USDT activity and low TVL suggests that while Tron excels as a payment network, it struggles to retain liquidity in its financial protocols.
