After a 36% plunge, Tron impressively rebounds. Is TRX set to return to its peak?
Recently, Tron (TRX) has experienced a rollercoaster market. After reaching an all-time high on December 3, it plummeted 36% in just two weeks. However, TRX, seemingly at rock bottom, has shown remarkable resilience in rebounding. What exactly happened?
The King of Stablecoins: Tron's Core Advantage
Despite fluctuations in market sentiment, Tron's stablecoin business has been soaring. According to data from CryptoQuant, the USDT transfer volume on Tron skyrocketed to $58.72 billion in November, setting a new historical high, outperforming all competitors. This strong performance has clearly become an important support for TRX, and even though short-term trading volume has decreased, funding remains highly interested in the Tron network.
Network Activity Pullback, but Fundamentals Remain Solid
Since December, on-chain transaction activity on Tron has slightly cooled down—from 9.03 million transactions on December 3 to 6.81 million transactions. However, don’t rush to be bearish; this pullback seems more like a breather after a frenzy. Meanwhile, Tron's TVL (Total Value Locked) in USD remains stable at a high level, although the TVL in TRX has decreased, mainly influenced by token prices, the network overall has not been significantly impacted.
Can the Bulls Make a Comeback? Capital Flow is Key
In the past two weeks, there has been a dominant outflow of funds from TRX, especially after the early December peak. Nevertheless, the funding rates remain positive, indicating that bearish sentiment towards TRX is relatively limited. More importantly, as of now, open contracts remain stable at $278 million, suggesting that large funds have not given up on betting on TRX.
To summarize: The bears still have some strength, but rebound signals are brewing.
Tron's fundamentals remain intact, and the unique advantages of its stablecoin business provide a solid moat. In the short term, the key for TRX lies in whether it can break through the pressure of capital outflow and attract bulls back into the market. If it can stabilize above $0.30, challenging the highs again is not impossible.
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