Tron (TRX) has shown positive price action in the week, outperforming most top twenty cryptocurrencies. In the last 24 hours, Tron’s price is up by 3.57%. As of today, Tron was trading at $0.1243, with a market capitalization of $10.937 billion. Trading volumes were on the rise, too, shooting up by 49% in 24 hours to stand at $353.822 million.
Tron Now Dominates USDT Trading
Tron’s positive price action follows reports of strengthening metrics. According to research by Messari, the number of users choosing to use Tron to transfer USDT is on the rise. Messari noted that Tron now hosts about 50% of the world’s total supply of USDT. This, the report notes, marks an increase of 11% in the last quarter of 2023.
The report is confirmed by DeFi Larma, which also indicates that Tron’s dominance in USDT is unchallenged. Based on DeFi Larma, Tron accounts for 71% of all trades in USDT. This is a big deal, considering that USDT has 94% of the world’s stablecoins market.
These metrics reflect Tron’s growing utility and image as the world’s best network for sending and receiving USDT.
Tron is also showing resilience relative to the broader market thanks to its core technological strength. Tron uses an innovative consensus mechanism called Delegated-Proof-Of-Stake. This allows the network to scale better than competitor blockchains such as Ethereum.
Essentially, Tron has positioned itself as a platform blockchain designed with the user experience in mind. It allows for low-cost transactions at high speeds.
Tron Crosses The 7 Billion Transaction Mark
Tron is outpacing Bitcoin and other top cryptocurrencies today after Tron Dao made an announcement that cemented the growing perception that Tron is the go-to blockchain for cheap and fast transactions.
The Tron Dao has noted that since its launch, the Tron Network has processed 7 billion transactions. Tron Dao has also highlighted that in the last 24 hours alone, Tron has processed 4 million transactions.
👏Congratulations! The total transactions on #TRON exceeded 7.1 billion🎊
— TRONSCAN (@TRONSCAN_ORG) February 6, 2024
These high daily transaction numbers, as reported by Tron Dao, are the key trigger to Tron’s price jump today.
Tron Price Breaks Out Of Multi-Month Consolidation, A Bullish Signal
Tron’s price shows a bullish breakout from a multi-month consolidation period.
After breaking out of a multi-month consolidation period on January 8, 2024, Tron has sustained upside momentum with increasing volumes.
If the current momentum sustains, Tron could rise to highs of 0.14 in the very short term. If Tron can push through resistance at $0.14, then prices at $0.20 or more could be achievable in the coming days or weeks.
However, if bulls lose momentum at $0.12, two scenarios could play out for Tron. The first is another consolidation phase similar to the one Tron went through between November 2023 and January 2024. This could then be followed by another surge upwards that could see Tron trend towards $0.20.
The other scenario would be Tron turning bearish and breaching the $0.108 support. If this happens, Tron could head lower with $0.08 as the next key support in the short to medium term.
Tron Price Prediction: The Case For Bulls
Now that Tron is in a bullish breakout from a multi-month consolidation, more investors could jump in, anticipating a price rally in the short term. Besides the technicals, fundamental factors could push Tron further up now that it is showing bullish signals.
The first is the solid Tron metrics that point to a blockchain cementing itself as the leader in the critical stablecoins market. This could see long-term investors looking for high-value cryptocurrencies turning to Tron.
Additionally, broader market dynamics paint a bullish signal for Tron and the entire market. The most important of these dynamics is the Bitcoin halving, which is less than 70 days away.
As money flows into the market anticipating a Bitcoin-driven rally, top-ranking cryptocurrencies already sending bullish signals could attract the most investment. Tron, being one of those that is already sending bullish signals, is among those that hold the most potential going forward.
This may explain the sharp increase in Tron’s daily trading volumes as investors look to take positions.
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