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TRON’s USDT dominance – Here’s what that means for TRX’s price

3min Read

TRON’s November recovery means the network is in a good position right now.

TRON's USDT dominance - Here's what that means for TRX's price

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  • TRX recorded gains of over 26.17% in the last 30 days
  • TRON’s USDT weekly volume surpassed 150 billion – A sign of strong adoption

TRON, at the time of writing, was valued at $0.1986 with a market capitalization surpassing $17 billion. In the last 7 days alone, the altcoin surged by 12.13% on the charts – An indication of strong investor confidence and bullish market sentiment. 

That’s not all though. Outside of the price front, TRON’s network noted a remarkable rise in USDT (Tether) transaction volumes since 2019, with a sharp uptick in recent months. 

Source: Dune

In fact, weekly USDT volumes have now surpassed 150 billion – Underscoring TRON’s growing adoption as a preferred platform for stablecoin transactions. 

TRON’s dominance can be further amplified by USDT’s position as the market’s leading stablecoin, representing approximately 70% of the total stablecoin market cap. Figures for the same stood at $184.02 billion, at press time. 

The aforementioned hike has been driven by TRON’s efficient transaction processing, low fees, and ability to facilitate high-volume transfers. These factors have made it an attractive option for users seeking affordability and speed. 

With TRON contributing $61.7 billion of USDT’s market cap through massive transaction activity, it has cemented itself as a critical enabler in the stablecoin ecosystem.

Despite USDC being favored by regulators, USDT has outpaced competitors with a 7.64% rise in market cap, a 31.55% hike in monthly transfer volume ($1.95 trillion), and a 7.99% uptick in active addresses (22.09 million) over the last 30 days. 

TVL’s recovery marks a robust year for TRON

TRON’s Total Value Locked (TVL) has also recovered significantly since early November. Figures for the same picked up momentum toward the end of last month after a two-month decline from September.

This rebound can be interpreted to be a sign of renewed interest and confidence in TRON’s ecosystem as market conditions stabilize.

Source: DefiLlama

Initially starting the year at around $8 billion, TRON’s TVL peaked at $10 billion in April, followed by mid-year fluctuations.

Despite a dip through September and October, November’s recovery highlighted TRON’s ability to bounce back. At the time of writing, the TVL had stabilized near $7 billion.

Stochastic RSI points to a price rebound

On the price charts, TRX seemed to be consolidating around $0.1986, with $0.1930 acting as a critical support level. A break below this level could signal the onset of a short-term bearish trend.

Conversely, if the price breaks above $0.2070, it may pave the way for a rally towards the $0.2200 resistance zone.

Source: Tradingview

The Alligator lines were converging too, indicating reduced market momentum and potential consolidation. Traders should watch for a crossover to confirm a possible trend reversal. The AO underlined declining bullish momentum with red bars making their appearance – A sign of weakening buying pressure. A continuation below the zero line could confirm short-term bearish momentum.

Finally, the Stochastic RSI was in the oversold zone with a reading of 25.23. It also pointed to the possibility of a potential price reversal.

A bullish crossover here could trigger a recovery rally.

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Maxwell is a crypto-economic analyst and blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.
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