TRX at a crossroads despite strong stablecoin support
- Tron prepares for more stablecoin-related on-chain activity.
- TRX at crossroads as slight spillage disrupts recent rally.
The Tron blockchain has no doubt been one of the fastest blockchain networks. Stablecoins have been critical in facilitating that growth and Tron’s latest announcements underscore more potential growth ahead.
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According to recent reports, the Tron network will facilitate Tether’s plan to deploy another 1 billion USDT into the market. While this highlights USDT’s growing marketcap, it also puts another major advantage into perspective for Tron.
The network has become one of the favorites for stablecoin issuers, and this is no surprise considering its fast-paced user growth.
Tether issued an additional 1 billion USDT on the TRON network today.
Coingecko shows that over the past 90 days, USDT’s market value has increased by $2.6 billion, while USDC’s market value has decreased by $4.6 billion. Currently, USDT accounts for 65% of the total market…
— Wu Blockchain (@WuBlockchain) July 12, 2023
While more USDT deployment on Tron is good news for the network, it is not the only stablecoin-related development to grace the network. Its CEO Justin Sun recently confirmed stUSDT’s launch on the Tron network.
This particular development emphasizes more utility coming into the network especially since stUSDT is used to verify ownership of real-world assets.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) July 12, 2023
Will TRX benefit from the aforementioned developments?
The stablecoin developments on Tron represent the continued favorable growth trajectory. Perhaps more importantly, they may end up pushing for more organic growth. Such progress is bound to lead to more utility for the TRX cryptocurrency. Perhaps encourage more liquidity into the token courtesy of the promising growth opportunities.
Are the same opportunities enough to support an extension of TRX’s latest rally? TRX has been rallying since the second week of June and delivered a 25% upside from its lowest point during the month.
That rally lasted up until this past weekend after peaking at $0.08. It has since experienced some selling pressure and exchanged hands at $0.077 at the time of writing.
TRX’s press time position indicated that there has been some profit-taking as seen in the Money Flow Index (MFI). However, it also reflected the prevailing confidence in the market. Meanwhile, the Relative Strength Index (RSI) confirmed that there was still some room for more upside. On the other hand, sentiment shifted in favor of the bears.
Interestingly, on-chain data suggested that quite a number of traders were also betting in favor of the bears. Especially in the derivatives market as reflected by the surge in negative funding rates in the last few days.
Realistic or not, here’s TRX market cap in BTC’s terms
TRX’s on-chain volumes have so far remained relatively stable. Some might interpret this as a sign that retail demand is not so active. On the other hand, TRX’s weighted sentiment has been on an overall upward trajectory, confirming an improvement in investor confidence.