Claims about crypto exchange Huobi’s financial health and its executives’ legal entanglements have fueled market speculation over the weekend.

Huobi has been witnessing continued outflows from its total locked-up value (TVL), dropping to $2.4 billion from a level of $3 billion in July. As reported by FX168 Financial News, there have now been rumors that several Huobi exchange executives had been taken into custody by the Chinese police.

However, these claims were categorically denied by Justin Sun, a global advisor to the company, who took to social media to debunk the rumors. Despite these assurances, the market sentiment remained skeptical as the outflow continued.

USDT reserves across exchanges

A closer examination reveals that Huobi’s situation may not be isolated. According to data from Glassnode, USDT reserves, on all chains, across most top exchanges, including Huobi, have depleted at a similar rate. This suggests that the concerns around Huobi might be part of a broader market trend rather than an issue specific to Huobi.

The TRON (TRX) network exhibited considerable growth in Q2 in daily active accounts, new accounts, and transactions, as metrics increased by 14%, 13.4%, and 28.9%, respectively, according to a recent report by Messari.

Tron Q2 Growth.

This growth coincided with the launch of BitTorrent Bridge and Stake 2.0, among other developments, showing promising expansion of the network’s capabilities and user engagement.

Messari’s report notes that the surge in network activity boosted revenue by 11.6% quarter-over-quarter in TRX terms, translating to a 22.2% increase when measured in USD.

Interestingly, the revenue growth led to a significant amount of TRX being burned, supporting the token’s value in an otherwise flat-to-down market. TRX outperformed most Layer 1 tokens during the quarter, with its market cap swelling by 14.7% compared to the average 23% decline of other major L1 tokens.

The report also highlighted TRON’s ongoing efforts to expand DeFi as applications and infrastructure providers began integrating TRX liquid staking and the decentralized resource marketplace.

TRON’s most prominent DeFi protocols, such as JustLend, JustStables, SUN, and JustMoney, saw increased Total Value Locked (TVL) during the period, reflecting vibrant activity in the network’s DeFi sector.

Across the network, TVl grew 7% when denominated in dollars, but the underlying amount of TRX fell by 7.9%.