TRON (TRX) set a new all-time high as the price peaked at $0.24, and the token appears to have claimed the hype rollover from XRP. The L1 token appreciated gradually in 2024 before its big rally.
TRON (TRX) vaulted its all-time record, achieved during its early historic rally in 2017. TRX traded close to $0.24, breaking its previous records above $0.22. In the past, TRX was seen as a possible candidate for rallying above $0.50 or even to $1.
TRX appreciated gradually in 2024, rewarding patient investors after years of trading under $0.10. The asset spent months in stagnation, despite claims of high activity on its chain. TRX hovered sideways, similar to other assets like XRP, Cardano (ADA), and IOTA (IOTA).
The recent shift to an altcoin market revived those old coins and tokens, with a rollover of enthusiasm. As the XRP rally stalled, TRX took over with a near-vertical rally. TRX gained more than 16% overnight as the other altcoin rallies slowed down while continuing to trade upward during Asian and European trading hours.
The TRX rally may also run out of steam, as other old altcoins are lining up for fast overnight gains. However, TRX is unique for being an infrastructure token, supporting one of the most active L1 chains.
TRX goes for sleeper rally after years as a key utility token
TRX open interest is just $160M, a relatively small figure for a token ranked 11th based on its market capitalization. TRX may be on the verge of re-joining the top 10 assets if its rally continues. TRX trading still hinges on predominantly long positions, with the potential for a price reversal.
After years of accumulation, the TRX rally coincided with the official altcoin season of late 2024. The altcoin season index expanded from 73 points to above 84 points in a single day, signaling the potential of the top 100 altcoins outgaining BTC.
The altcoin rally follows a shift from meme tokens. Older altcoins are also amenable to the same hype and irrational trading, especially if long-term holders are in no hurry to sell until the price moves to a new range.
TRON remains a secluded ecosystem, with a focus on the Asian market. The chain turned into a top fee producer with net gains, driven by its ecosystem of apps. The most activity comes from Tether (USDT), which issued more than 61B tokens on TRON. TRX serves as the utility token to pay these transaction fees.
The recent TRX rally also hints at TRON’s immunity to FUD and skepticism.
Energy, USDT volume grew to a new peak
The activity of the TRON network is measured by its use of ‘energy’, similar to gas on Ethereum. Energy usage reached an all-time high in the past two months, measuring a return to generally high volumes.
Total transactions on TRON have recovered to levels not seen since the 2021 and 2022 bull markets. In the past weeks, those transactions have been much more consistent. The TRON network reports more than 3.2M daily active addresses, with more than 14M wallets active in the past month.
USDT volumes were the main driver for TRON activity. The token is held in more than 57M wallets, a reflection of stablecoin adoption in recent times.
Weekly USDT transaction volumes reached over 150B, and TRON was a leader in carrying professional investor or whale-sized transactions between $10K and $100K. Stablecoins, in addition to its DeFi sector, were one of TRON’s key use cases.
TRON accrued $8.98M in total value locked, on track to break its previous peak above $10B in all lending and DEX protocols. Based on its activity as a utility L1 chain, TRON achieved more than $28M net earnings for November, even after paying out incentives to its validators.
In November, TRON also received $238.42M in fees, its highest achievement over the last six months, further proof of its growing on-chain activity.
TRON mostly underperformed during the meme tokens drive, losing out to Pump.fun and Solana. SunPump saw a total of around 93K meme tokens created, just under two days’ worth of Pump.fun’s two-day mint total.
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