TRON’s USDT Dominance Sparks Speculation on TRX Price Impact

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

As of the current moment, TRON is priced at $0.1986, commanding a market capitalization that exceeds $17 billion. Over the past week alone, this alternative coin has seen a 12.13% surge – Demonstrating significant confidence among investors and a bullish sentiment in the market.

However, it’s not just about the price movement. Beyond that, TRON’s network has observed a notable increase in USDT (Tether) transaction volumes since 2019, with a noticeable uptick in recent months.

Weekly USDT transaction volumes have now crossed 150 billion, reflecting TRON’s increasing popularity as a favored platform for stablecoin transactions.

Furthermore, TRON’s dominance is further emphasized by USDT’s position as the primary stablecoin in the market, representing roughly 70% of the total stablecoin market cap which currently stands at $184.02 billion.

The recent surge is a result of TRON’s efficient transaction processing, low transaction fees, and its ability to handle high-volume transfers effectively. These aspects make it an appealing choice for users looking for cost-effective and swift transactions.

With TRON contributing a significant $61.7 billion to USDT’s market cap through extensive transaction activity, it has solidified its role as a crucial facilitator in the stablecoin ecosystem.

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

TRON sees a strong year with TVL recovery

TRON’s Total Value Locked (TVL) has shown significant recovery since early November. The numbers gained momentum towards the end of last month after a two-month decline starting from September.

This recovery indicates renewed interest and confidence in TRON’s ecosystem as market conditions become more stable.

Beginning the year at approximately $8 billion, TRON’s TVL hit a peak of $10 billion in April before experiencing fluctuations in the middle of the year.

Despite a decrease in September and October, the bounce back in November showcased TRON’s resilience. Currently, the TVL has settled around $7 billion.

Stochastic RSI suggests a potential price recovery

On the price charts, TRX appears to be consolidating around $0.1986, with a significant support level at $0.1930. A breach beneath this level could mark the start of a short-term bearish trend.

Conversely, breaking the $0.2070 mark could lead to a rally towards the resistance zone at $0.2200.

The convergence of the Alligator lines indicates a decrease in market momentum and a potential consolidation phase. Traders should keep an eye out for a crossover to confirm a probable trend reversal. Additionally, the AO signals a decline in bullish momentum through the appearance of red bars, indicating weakening buying pressure. Confirmation of short-term bearish momentum could come with a continuing trend below the zero line.

Finally, the Stochastic RSI shows an oversold zone with a reading of 25.23, suggesting the possibility of a price reversal. An upbeat crossover at this point could trigger a recovery rally.

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