Will Canary Capital’s staked TRX ETF launch trigger a TRON supply squeeze?

What are the factors that drive institutions to adopt a particular cryptocurrency?

From a fundamental perspective, a growing number of institutions today are becoming more forward-looking in their approach rather than purely speculative. That is, institutions today consider the token’s utility, network growth, and yield potential in the long run, not just the short-term risk/reward profile.

With that being said, the focus naturally shifts to Canary Capital, which has launched the Canary Staked TRX ETF (TRXS), which offers U.S. investors with exposure to TRON’s spot price and staking rewards. But the timing of this move is what really matters.

Technically, TRX failed to capitalize on the parabolic rally in the price of the crypto-asset during August, registering a gain of just over 1% on the chart. However, Ethereum [ETH] surged over 30% during the same period. In other words, TRX underperformed the majority of large-cap tokens that have followed Bitcoin’s 25% gain during the past month.

But fundamentally, the picture looks different. According to DeFiLlama data, the amount of USDT on the Tron blockchain has increased by more than 2% in the last thirty days. On the contrary, the balance on Ethereum has decreased by 0.5% during the same period. The key takeaway? Tron has once again overtaken Ethereum in terms of total USDT supply.