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Key Insights:
- Tron price continued its strong bull run amid the ongoing accumulation.
- Tron Inc. will acquire TRX tokens worth $1 billion this year.
- Technicals suggest that the token will continue rising in the coming weeks.
Tron price continued surging this week and reached its highest level since December last year. The TRX token soared to $0.3425 as Tron Inc. announced a new $1 billion fundraising to buy more tokens. This accumulation could lead to more upside as the number of tokens has been in a downtrend.
Tron Inc. to Buy TRX Tokens Worth $1 Billion
MicroStrategy’s success has inspired copycats that are accumulating different tokens. For example, SharpLink Gaming has become one of the biggest holders of Ethereum coins.
Tron Inc, which recently changed its name from SRM Entertainment, is aiming to become the biggest holder of TRX tokens. The company announced that it would raise $1 billion to buy more Tron tokens in the coming weeks.
That $1 billion is a notable figure because TRX has a market capitalization of $32 billion. This means that, at the current level, Tron Inc. will own almost a third of all TRX tokens in circulation.
The accumulation is also notable as it comes as the number of TRX tokens in circulation continues to plunge. TronScan data shows that there are now over 94.7 billion TRX tokens in circulation, down from 96 billion in the same period last year.
The figure has been in a downtrend because the number of TRX tokens created daily has constantly been smaller than those burned. For example, 3.9 million tokens were generated on Monday compared to 6.53 million burned on the same day.
Falling token supply and soaring demand are signs that an asset’s price can keep rising over time.
Tron Has Strong Fundamentals in Terms of Stablecoins and Fees
The bullish case for Tron is also based on its strong fundamentals, especially in the stablecoin industry. Artemis data shows that the stablecoin supply in Tron has jumped by 1.25% in the last 30 days to over $82 billion. This makes it the second-biggest player in the industry after Ethereum.
Tron has over 9.8 million stablecoin addresses, a 3.7% monthly increase. The number of stablecoin transactions on its chain jumped by 1.2% to 68.4 million.
While its stablecoin volume dipped by 5%, it still handled over $627 billion, it is slightly below Ethereum’s $678 billion.
This growth has made it the most profitable chain in the crypto industry. TokenTerminal data shows that it made over $3.4 billion in revenue in the last 365 days. It is much higher than Ethereum’s $764 million and Solana’s $403 million.
More data that could boost the Tron crypto price is its booming decentralized finance (DeFi) ecosystem. The total value locked (TVL) in its ecosystem jumped by 32% in the last 30 days to over $6.09 billion.
Tron Price Technical Analysis
The daily timeframe shows that TRX price has been in a strong bull run in the past few months. It bottomed at $0.2015 in February and reached a high of $0.344 today, July 29, a 72% surge.
A closer look shows that Tron price has crossed the important resistance level at $0.3343, invalidating the small double-top pattern that was forming.
TRX has moved above the 38.2% Fibonacci Retracement level at $0.3186. It has also remained above the 50-day and 200-day Exponential Moving Averages (EMAs).
The Relative Strength Index (RSI) has also jumped to the overbought point. Its Average Directional Index (ADX) rose to 47, a sign that the momentum is continuing. Therefore, the Tron crypto price could keep rising as bulls target last year’s high of $0.4497, up by over 32% from the current level.
Will Tron Price Keep Soaring?
Tron price has been in a strong uptrend this year, and technicals suggest that it has more upside in the coming weeks. If this happens, the price may keep soaring to $0.4497 as Tron Inc. continues accumulation.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
