- TRON fee revenues reached all-time highs in 2024, pointing to a surge in adoption
- Market fundamentals pointed to a potential trend reversal for TRX
Since reaching a recent high of $4.5 three weeks ago, Tron [TRX] has seen some strong downward pressure on the charts. In fact, the altcoin has failed to fully recover since hitting a low of $0.22. At the time of writing, the crypto appeared to be trading within a consolidation range between $0.22 and $0.26.
Despite TRX’s failure to maintain the upward trend on the price charts, adoption and usage of the network has skyrocketed throughout the year.
TRON achieved its highest fee income ever
According to CryptoquantTRON reached its highest level ever in fee income. In October 2024, the TRON blockchain recorded its highest ever turnover of over $200 million.
This increase continued in November, with total fee revenue figures exceeding $180 million.
Source: Cryptoquant
In comparison, the TRON blockchain recorded figures of $32.6 million in November 2022 and $102.3 million in November 2023.
This represented a 7x increase from 2022 and an increase of almost 2x from 2023. Therefore, the currently observed increase in fees is a clear sign of TRON’s increasing activity as the ecosystem continues to expand significantly. This growth in its ecosystem and network usage is well positioned to benefit its native token TRX.
Impact on TRX?
While TRON has seen a significant increase in its network usage, TRX has also faced significant challenges. As a result, it has failed to keep up the pace.
However, it is worth noting that the altcoin’s recent price action and on-chain metrics pointed to a potential trend reversal to the upside and subsequent price recovery.
Source: Tradingview
For starters, TRX’s Relative Strength Index (RSI) has made a bullish crossover over the past 24 hours. This crossover suggested that buyers have entered the market and are currently in control. As more buyers enter the market, this contributes to higher buying pressure – driving the price up.
This can be further reinforced by the Relative Vigor Index (RVGI), which also made a bullish crossover that day. This implied that the crypto’s upward momentum was getting stronger, while the downward pressure was also decreasing.
Source: Santiment
Furthermore, TRX’s Binance funding rate has remained positive over the past five days. This underlined the high demand for long positions.
So, investors are willing to pay a premium to hold their trade, waiting for more gains on the TRX price chart.
Source: IntoTheBlock
Finally, bullish sentiments among whales have also become prevalent. According to IntoTheBlock, inflows from major investors rose to 321.45 million last week. Rising capital inflows from major investors are a sign of their confidence, with the market possibly also anticipating more profits.
TRON fee revenues may be rising, but TRX has historically failed to maintain the pace to grow with it. However, greater use of the network could provide a positive outlook for TRX.
If the perceived bullishness continues, TRX will break out of the USD 0.26 resistance and regain USD 0.30. However, if these do not hold, TRX will break below the consolidation margin and fall to $0.20.