Cryptocurrency prices started the week well, with Bitcoin matching towards the $70,000 level and the crypto fear and greed index moving to $63. Some of the top-performing cryptocurrencies on Monday were Brett, Bitcoin Cash, Raydium, and Popcat.
Our crypto chart of the week goes to Justin Sun’s Tron (TRX), which is slowly nearing the pivotal price of $0.145, which could open the door to it soaring to a record high of $0.18.
Tron ecosystem is booming
Tron price has done well in the past few years. While it has missed the meme coin rally that has propelled Solana, it has achieved a lot of success in other areas.
First, I believe that the most important area where Tron dominates is in the stablecoin industry. Data shows that Tron has over $59 billion worth of stablecoins in its blockchain while the volume of daily transactions has soared to over $42 billion.
These numbers mean that, in some days, Tron processes more money than Visa and Mastercard, products that are used by millions of people globally.
Also, the data show that stablecoins are doing well as a means of exchange. Many companies, especially those dealing with foreigners, have adopted stablecoins as their preferred means of exchanges.
Many people in emerging markets have also adopted stablecoins as their local currencies have plummeted. Some key currencies like the Indian rupee, Chinese yuan, and Brazilian real have retreated sharply this year.
Tron’s stablecoins are higher than those in BNB Chain, Arbitrum, Solana, Base, Avalanche, Polygon, and Optimism, combined.
Stablecoin in chains | Source: DeFi Llama
Tron addresses are soaring
Meanwhile, the number of Tron addresses has continued rising in the past few months. Data by DeFi Llama shows that Tron’s ecosystem has over 1.32 million active addresses. It is followed by the likes of Ronin, Near, Polygon, Optimism, and BNB Chain.
In contrast, Ethereum has 367,000 addresses while Solana has 1.14 million and Arbitrum has 478,000. These numbers mean that Tron has a real utility in the blockchain industry even as it lacks a major market share in areas like memes and decentralized public infrastructure (DePIN).
Additional data shows that Tron is the second-biggest player in the DeFi industry. It has a total value locked (TVL) of $8.61 billion, with its top networks being JustLend, JustStables, and SUN.
All these factors have led to Tron being the second most profitable networks in the blockchain industry. Tron has made over $920 billion in daily fees this year while Ethereum has collected over $1.8 billion.
Tron is more profitable than other popular players in the crypto industry like Bitcoin, Lido Finance, Uniswap, Solana, Aave, and Jito. It then channels some of these fees to its stakers.
Data by StakingRewards shows that Tron has a staking yield of 4.15%, higher than Ethereum’s 3.5%. Its staking yield means that $100,000 invested in Tron will make over $4,150 a year. Tron has a staking ratio of 51.2%, meaning that most of its holders have staked it.
Another important aspect of Tron is that the number of TRX tokens in circulation has continued falling in the past few months because of its burning mechanism. Tron’s supply peaked at almost 102 billion in 2021 and has now dropped to 87.1 billion. Falling TRX supplies create more value to holders by making their tokens more valuable.
Tron price forecast
Tron price chart | Source: TradingView
The weekly chart shows that the Tron price has done well in the past few months. It has risen from the 2020 low of $0.0067 to $0.14. The token has constantly remained above the 50-week and 100-week Exponential Moving Averages (EMA).
Most recently, the token formed a doji pattern in April, leading to more upside. In technical analysis, a doji is characterized by a small body and upper and lower shadows.
Tron is now nearing the important level at $0.1452, the upper side of the shooting star pattern that happened in February. This price is also the upper side of the cup and handle pattern that has been forming.
It is nearing the 23.6% Fibonacci Retracement point. Therefore, a move above that level will point to more gains and open the possibility of it rising to its all-time high of $0.1840, which is about 32% above the current level.
The biggest risk is that that level is part of a double-top pattern. In most cases, this pattern is one of the most bearish signs in the market. If it works, then Tron could drop and retest the neckline at $0.104, which is 24% below the current level and slightly below the 38.2% retracement point.
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