Tron is preparing for more stablecoin-related on-chain activity. TRX at crossroads as light spill disrupts recent rally.
The Tron blockchain has been without a doubt one of the fastest blockchain networks. Stablecoins have been critical in facilitating that growth and Tron’s latest announcements underline more potential growth ahead.
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According to recent reports, the Tron network will facilitate Tether’s plan to bring an additional 1 billion USDT to market. While this highlights USDT’s growing market cap, it also puts another major advantage for Tron into perspective.
The network has become one of the favorites for stablecoin issuers, and this is no surprise given its rapid user growth.
Tether spent another 1 billion USDT on the TRON network today.
Coingecko shows that the market value of USDT has increased by $2.6 billion in the past 90 days, while the market value of USDC has fallen by $4.6 billion. Currently, USDT accounts for 65% of the total market…
— Wu Blockchain (@WuBlockchain) July 12, 2023
While more USDT deployment on Tron is good news for the network, it is not the only stablecoin-related development gracing the network. The CEO Justin Sun recently confirmed the launch of stUSDT on the Tron network.
This particular development highlights more utility coming into the network, especially as stUSDT is used to verify asset ownership in the real world.
Watch the excerpt from my interview below @coindesk where we discuss the launch of #stUSDT on #TRON. 🎙 pic.twitter.com/hOi3DaMdaZ
— HE Justin Sun 孙宇晨 (@justinsuntron) July 12, 2023
Will TRX benefit from the above developments?
The stablecoin developments on Tron represent the continued favorable growth trajectory. Perhaps more importantly, they can eventually push for more organic growth. Such progress will undoubtedly lead to more usability for the TRX cryptocurrency. Perhaps encourage more liquidity in the token thanks to its promising growth opportunities.
Are the same odds enough to support an extension of TRX’s latest rally? TRX has been on the rise since the second week of June, delivering a 25% gain from its low during the month.
That rally lasted until last weekend after peaking at $0.08. It has since experienced some selling pressure, changing hands at $0.077 at the time of writing.
Source: TradingView
TRX’s press time position indicated that there has been some profit taking, as seen in the Money Flow Index (MFI). However, it also reflected the prevailing confidence in the market. Meanwhile, the Relative Strength Index (RSI) confirmed that there was still some room for more upside. On the other hand, sentiment turned in favor of the bears.
Interestingly, on-chain data suggested that quite a few traders were also betting in favor of the bears. Especially in the derivatives market, as evidenced by the rise in negative financing rates in recent days.
Source: Sentiment
Realistic or not, here is TRX’s market cap in terms of BTC
TRX’s on-chain volumes have remained relatively stable so far. Some may interpret this as a sign that retail demand is not as active. On the other hand, TRX’s weighted sentiment has followed an overall upward trajectory, confirming an improvement in investor confidence.
Source: Sentiment
This post Why TRX is at a crossroads despite Tron strengthening its stablecoin support
was published first on https://ambcrypto.com/why-trx-is-at-crossroads-despite-tron-strengthening-its-stablecoin-support/
