The Tron [TRX] network announced a partnership with the liquidity provider, Wintermute. As is the case with all partnerships, this new collaboration will aim to bring more efficiency to TRON.
Wintermute will be Tron’s official market maker as per the agreement. The official announcement revealed that the liquidity provider will boost Tron’s liquidity across multiple exchanges.
This is because Wintermute will act as Tron’s market maker, bridging the gap between buyers and sellers.
This will help in many ways:
✅ Fill trades
✅ Reduce volatility
✅ Lessen the spread for trading pairs
— TRON DAO (@trondao) September 13, 2022
The TRX factor
The most important aspect of the development is its impact on Tron’s native cryptocurrency TRX. Furthermore, Tron’s development activity metric achieved a substantial improvement in the last three days.
These improvements are likely related to development activity involving Wintermute integration.
Additionally, such a development represents a noteworthy network improvement. In ideal situations, the right kind of development can fuel a positive sentiment shift among investors.
Such is the case with the Wintermute development because TRX’s total weighted sentiment registered a spike in the last 24 hours.
An indication that investors have responded positively to the latest development.
On the price action side of things, TRX started off this week on bearish momentum. It dropped by roughly 6.7% from 11 to 13 September.
Tron’s bearish pullback this week represents a failure to push past the 50% Relative Strength Index (RSI) level. This is in line with the bearish weakness in the market after the previous rally was foiled by selling pressure that manifested during the weekend.
Furthermore, TRX’s retracement in the first half of the week resulted in a support retest at the $0.060 price level. Sell pressure has also eased off at the aforementioned price zone, in response to the sentiment shift.
Tron’s collaboration with Wintermute is expected to enable a smoother trading experience for TRX investors.
This may not necessarily contribute to short-term demand. Hence, the potential upside as a result of investor sentiment shift will be limited.