Significant Decline in TRX Price
The price of Tron (TRX) has seen a sharp decline in recent weeks. From its peak of $0.4506 on December 4, it dropped to $0.2600, marking a 42% decrease. Despite this, Tron has outperformed Ethereum in terms of fee revenue. What does this mean for the future of Tron?
Tron Generates More Revenue Than Ethereum
Ethereum has long been the most profitable blockchain network due to its higher fees and platform activity. It boasts a total value locked (TVL) of over $68 billion, a bridging volume nearing $200 billion, and more than $111 billion in stablecoins. In contrast, Tron’s TVL stands at $7.4 billion, with $60 billion in stablecoins and only 34 decentralized applications compared to Ethereum’s 1,263.
Nevertheless, Tron has surpassed Ethereum in fee generation. According to TokenTerminal, Tron collected over $1.3 billion in fees over the past 180 days, compared to Ethereum’s $800 million. In the last 30 days, Tron earned $333 million in fees, while Ethereum generated $217 million.
If this trend continues, Tron could surpass Ethereum in annual fee revenue by 2025.
Factors Behind Tron’s Rising Fees
The growth in Tron’s fees is primarily driven by the SunPump ecosystem, which allows users to quickly create meme coins. The project saw a rapid start, with thousands of tokens created in just a few days. However, the market capitalization of these tokens has declined from $700 million to $144 million.
The top tokens in this ecosystem include Sundog, Tron Bull, Tron Bull Coin, Suncat, and SunWukong.
Higher fees also translate to better staking returns for Tron users. With a market capitalization exceeding $10 billion, Tron’s staking yield is 4.65%, compared to Ethereum’s 3.03%.
Technical Analysis of TRX Price
The daily chart indicates that TRX remains in a deep bearish market, although it is holding above its 50-day moving average. This suggests the potential for a rebound and a return to average levels after a sharp decline.
The price of Tron is also above an ascending trendline connecting its lowest levels since June. Additionally, it has formed a falling wedge pattern, a popular indicator of a potential trend reversal.
Future Price Outlook
If TRX bounces back, it could reach its yearly high of $0.4506, representing a 73% increase from current levels. However, a drop below the $0.2232 support level would invalidate the bullish outlook.
#TRON✅ , #CryptoPredictions , #priceanalysis , #cryptocurrencies , #CryptoAnalysis
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“