Tron (TRX) is a leading blockchain project started by Justin Sun, which has become an integral part of the cryptocurrency project.
It is a blockchain network similar to Ethereum (ETH) and Solana (SOL) that lets developers build decentralized applications (dApps). It also helps users handle stablecoin transactions for lower costs than Ethereum.
Tron’s blockchain supports tens of dApps in the decentralized finance (DeFi) industry like Sun, JustStables, and JustMoney.
Tron has grown in the past few years, which has pushed its total market cap to over $13 billion, making it the 10th biggest cryptocurrency in the world. It is also the second-biggest layer-1 chain in DeFi after Ethereum with over $8 billion in Total Value Locked (TVL).
Tron was trading at $0.1527 on Thursday, up by over 1,915% from its lowest point in 2020. Its HypeIndex figure was 290%.
Positive hype
Tron’s hype has risen in the past few days after major developments from the developers.
Justin Sun launched SunPump, a meme coin generator that is competing with Solana’s Pump.fun. The hope is that the platform will have many meme coins and generate more revenue for the network. Pump.fun has made almost $100 million in revenue in the last eight months.
Tron’s Decentralized Exchange (DEX) has seen more volume in the past few days. Data shows that the weekly volume in these platforms has jumped by 436% to over $701 million. It has passed other leading chains in the DEX industry like Polygon, Avalanche, and Optimism.
The amount of money packed in the Tron ecosystem has risen by over 5% in the last seven days to over $8 billion while the number of TRX holders has jumped to over 2.32 million.
Tether minted 1 billion USDT tokens on the Tron ecosystem this week. Altogether, Tron has over $59.56 billion in stablecoins, making it the second-biggest player after Ethereum, which has $82.26 billion.
Tron is also reducing the number of TRX tokens in circulation through burning. The number of TRX tokens in circulation dropped to 86.9 million from over 101 million in 2021.
Tron’s staking reward rate has jumped to 4.36% from this month’s low of 4.13%.
It has also benefited from the rising hope that the Federal Reserve will cut interest rates in September. Historically, cryptocurrencies do well when the Fed has embraced a dovish tone.
Tron, unlike other altcoins, is usually not highly correlated with Bitcoin.
Negative hype
Tron has also experienced some negative hype.
The launch of SunPump has led to concerns that it will promote scams and market market manipulation. Most Pump.fun tokens launched this year have tumbled, with the market cap of all tokens falling to $400 million.
Tron, unlike Solana, has not had a lot of traction among developers. It only has 34 DeFi applications while Solana has 157 and Ethereum has 1,151. Tron has a little market share in an industry like tokenization.
Summary on Tron
Tron has done well in the past few years. It bottomed at $0.0080 in 2020 and has bounced back to a record high of near $0.17.
Tron has strong fundamentals, especially in the stablecoin industry, and is the second-most profitable networks in the crypto industry. Data shows that the network has made over $1.03 billion this year, higher than Bitcoin, Lido, and Tether.
The coin has invalidated the double-top pattern that was forming at $0.1143, meaning that it has more upside this year. If this happens, it could rise to the psychological level of $0.20.
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