TRON Sets New Record in Fee Revenue, Expected Impact on TRX Price
After reaching a peak of $4.5 a few weeks back, Tron [TRX] has faced significant selling pressure leading to a downward trend. The altcoin has struggled to recover fully since hitting a low of $0.22 and is currently trading in a narrow range between $0.22 and $0.26.
Despite the price challenges, TRX has witnessed a substantial increase in network adoption and usage throughout the year.
TRON Achieves All-Time High in Fee Revenues
Recent data from Cryptoquant reveals that TRON has generated its highest fee revenues on record. In October 2024, the TRON blockchain saw fee revenue surpass $200 million, marking a significant milestone.
November also showed a strong performance, with total fee revenue surpassing $180 million.
When compared to previous years, the growth is striking, with figures of $32.6 million in November 2022 and $102.3 million in November 2023. This surge indicates a considerable uptick in TRON’s activity and network expansion, pointing to a positive trajectory for its native token, TRX.
Potential Impact on TRX
While TRON’s network usage has increased significantly, TRX has faced its own set of challenges in maintaining upward momentum.
Notably, recent price movements and on-chain indicators suggest the possibility of a bullish trend reversal and subsequent recovery in TRX’s price.
The Relative Strength Index (RSI) for TRX recently indicated a bullish crossover, signifying increased buying interest and potential price uptrend.
Moreover, the Relative Vigor index (RVGI) also experienced a bullish crossover, indicating strengthening upward momentum and reduced selling pressure.
Furthermore, TRX’s positive Binance funding rate in the past few days suggests a strong demand for long positions, reflecting optimism among investors regarding potential price gains.
Whale activity has also been notable, with large holders increasing their positions by 321.45 million over the past week, signaling confidence in TRX and a positive market sentiment.
While TRON’s fee revenue continues to rise, TRX has struggled to keep pace with this growth. However, the increased network usage could lead to a more favorable outlook for TRX.
If the current bullish trend persists, TRX is likely to break above the $0.26 resistance level and target $0.30. Failure to sustain these levels could result in a breakdown below the consolidation range towards $0.20.