Journalist
Posted:
- The number of Tron addresses continues to rise, with the focus on stablecoin as the main growth engine.
- TRX could face more selling pressure after entering September with bearish sentiment.
Competition in the blockchain segment has increased in recent years. Tron might just be one of the networks vying for the top spot. The network has reached milestone after milestone in its journey.
Is your wallet green? Check out the Tron Profit Calculator
Tron’s latest announcement revealed that the number of addresses on the network has just passed the 183 million mark. While that’s an impressive achievement, the reasons behind this growth are more remarkable.
Stablecoins are by far Tron’s biggest growth engine, and a closer analysis unravels the network’s winning strategy.
#TRON currently has 183 million accounts according to recent @TRONSCAN_ORG facts. 💪
With fast transaction speeds and a fast-growing user base, it’s no wonder we lead the way. 🙌 Using TRON is easy. We made it that way to serve more people. 🌎 https://t.co/LkRQdmXgNx
— TRON DAO (@trondao) September 7, 2023
Picture this. The year is 2021 and the market is getting too hot to ignore. So you and millions of others decide to test the waters. But you soon discover that it is easier to use something more stable as a stepping stone to buying crypto due to its volatile nature. This is the same realization that Tron’s team came to, inspiring a heavy focus on stablecoin support while enabling affordable transactions.
Bearish market conditions put a limit on trades
The realization that stablecoins would attract the highest level of utility in WEB3 encouraged Tron to respond accordingly. That gamble has paid off as Tron’s transactions have grown exponentially over the past three years, despite the crypto winter happening.
Source: DeFiLlama
Tron daily fees peaked at less than $1 million at the peak of the 2021 bull run and have since climbed above $1 million and as high as $1.6 million. This underscores the robust utility and adoption the network has achieved over the past three years.
How much are 1,10,100 TRXs worth today?
Like most top networks, Tron was operating at a fraction of its potential at the time of writing. This was largely due to bearish market conditions negatively impacting utility levels.
For example, transactions on the Tron network have slowed significantly over the past three months. The network peaked at 13.96 million transactions in June, but dropped below 4 million transactions a month later.
Source: DeFiLlama
Tron’s robust growth may have contributed to the native cryptocurrency’s overall bullish performance since November 2022. TRX was trading at $0.079 at the time of writing, which represented a 75% premium over its 12-month low. However, it could soon fall victim to market pressures if overall bearish market conditions take over.
Source: Sentiment
The weighted sentiment metric just dropped to its weekly low. In other words, investor sentiment for September could swing in favor of the bears. So we could see an increase in selling pressure, potentially negating some of TRX’s recent gains.