Can Tron’s explosive growth save TRX from getting caught up with the bears?
- Tron’s address tally continues to soar, with stablecoin focus as the key growth driver.
- TRX could face more sell pressure after kicking off September with a bearish sentiment.
Competition has intensified in the blockchain segment over the last few years. Tron is arguably one of the networks that have been vying for the top spot. The network has been hitting growth milestone after milestone in its journey.
Is your portfolio green? Check out the Tron Profit Calculator
Tron’s latest announcement revealed that the number of addresses on the network just crossed the 183 million mark. While that is an impressive feat, the reasons behind this growth are more noteworthy.
Stablecoins are by far Tron’s biggest growth driver and a closer analysis unravels the network’s winning strategy.
With quick transaction speeds and a rapidly expanding user base, it’s no wonder we’re leading the way. ? Using TRON is easy. We’ve made it that way in order to serve more people. ? https://t.co/LkRQdmXgNx
— TRON DAO (@trondao) September 7, 2023
Picture this. The year is 2021 and the market is getting too hot to ignore. So you and millions of others decide to test the waters. But, you quickly discover that it is easier to use something more stable as an on-ramp to buying crypto due to its volatile nature. This is the same realization that Tron’s team came to, and it inspired a heavy focus on stablecoin support while also enabling affordable transactions.
Bearish market conditions are putting a cap on transactions
The realization that stablecoins would attract the highest level of utility in WEB3 encouraged Tron to respond accordingly. That gamble has been paying off because Tron’s transactions have grown exponentially in the last three years despite crypto winter taking place.
Tron’s daily fees peaked at less than $1 million at the height of the 2021 bull run and have since then surged above the $1 million mark and even peaked at $1.6 million. This underscores the robust utility and adoption that the network has achieved in the last three years.
How many are 1,10,100 TRXs worth today
Like most top networks, Tron, at press time, was operating at a fraction of its potential. This was largely due to the bearish market conditions that negatively impacted the level of utility.
For example, transactions on the Tron network slowed down considerably in the last three months. The network peaked at 13.96 million transactions in June but dropped below 4 million transactions a month later.
Tron’s robust growth may have contributed to its native cryptocurrency’s overall bullish performance since November 2022. TRX traded at $0.079 at press time which represented a 75% premium from its 12-month low. However, it might soon become victim to market pressures if the overall bearish market conditions prevail.
The weighted sentiment metric just dropped to its weekly low. In other words, investor sentiment for September could make a shift in favor of the bears. We could thus see a surge in sell pressure, potentially undoing some of TRX’s recent gains.