Dec 3, 2024

6thTrade


TRON (TRX) has surged to a new all-time high, reaching $0.24, surpassing its previous peak set during its early 2017 rally. The token has benefited from the ongoing altcoin season, particularly drawing momentum from the XRP rally as it stalled, with TRX posting a remarkable 16% overnight increase.

TRX's Sleeper Rally After Years of Accumulation

After years of trading under $0.10 and little movement, TRX has experienced a significant rally in 2024, rewarding patient investors. Despite months of sideways price action, similar to other altcoins like XRP and Cardano (ADA), TRX has now surged past its previous all-time high of $0.22. The rally aligns with the resurgence of older altcoins in the market, marking a shift in enthusiasm from meme tokens to more established projects like TRX.

Although the recent rally has been impressive, there are concerns that TRX may face a slowdown as other altcoins also gain attention. However, TRX stands out due to its role as a key utility token for one of the busiest Layer 1 blockchains.

TRX: A Strong Utility Token for TRON's Ecosystem

TRX's market capitalization has catapulted it close to the top 10 assets by market value, with a relatively modest open interest of $160M. The token’s recent performance suggests it may continue to climb, especially as the broader altcoin market enters a period of significant gains. However, most TRX trades still involve long positions, leaving room for potential price corrections.

TRON's utility has been a major factor in this rally, with the network's activity largely driven by the adoption of Tether (USDT), which accounts for over 61 billion issued tokens on the TRON network. TRX serves as the token to pay transaction fees, contributing to the token's rising demand.

Peak Network Activity and USDT Volume

TRON has seen a surge in its network activity, with ‘energy’ usage (similar to gas on Ethereum) hitting all-time highs in recent months. Daily active addresses have surged to over 3.2 million, and more than 14 million wallets were active in the last month. USDT transaction volumes have also reached record levels, with weekly volumes exceeding $150 billion, positioning TRON as a leader for professional and whale-sized transactions.

In November, TRON achieved $238 million in transaction fees, marking its highest total in six months, further signaling its growing on-chain activity. The network's total value locked (TVL) reached nearly $9 billion, with DeFi and stablecoin use cases driving growth.

TRON's Growing Influence and Resilience

TRON has proven resilient, weathering skepticism and FUD (fear, uncertainty, and doubt) in the market. Its strong network activity, stablecoin adoption, and rising USDT volumes underscore its growing importance in the crypto ecosystem. As TRX continues its upward trajectory, the token's growing usage and utility position it as a key player in the altcoin space, with potential for further gains if its momentum persists.