Tron Price Could Surge as Fees and Transactions See Significant Growth

Tron (TRX), the crypto project founded by Justin Sun, is currently experiencing a bear market, with its price dropping more than 40% from its peak in 2024. As of Friday, TRX’s price stood at $0.2290, but several key fundamental and technical factors suggest that a rebound might be on the horizon.

According to data from TokenTerminal, Tron has become the second-largest fee earner in the crypto industry, following Tether (USDT). In 2024, Tron has generated $330 million in fees, trailing Tether’s $430 million. This is impressive, especially since Tron has outpaced Ethereum, which has earned $172 million in fees this year, and Solana, which has generated $278 million.

A significant portion of this fee growth comes from Tron’s increasing role in the stablecoin market. The market capitalization of Tron’s stablecoin ecosystem has soared to over $61 billion, with $100 billion in transfer volume recorded on a single day. Additionally, the number of USDT holders on the Tron network has surpassed 60.4 million, which demonstrates the platform’s growing adoption and usage.

Tron’s staking ecosystem further contributes to its growth potential. The staking yield on Tron is currently 4.5%, which is higher than Ethereum’s 3.12% and Sui’s 2.54%. This provides additional incentives for investors to lock up their TRX tokens, reducing the circulating supply and further driving deflationary pressure on the token.

This deflationary trend is supported by the ongoing burning of TRX tokens, as more tokens are burned than minted. The total circulating supply of TRX has decreased slightly, from 86.15 billion to 86.11 billion tokens over the past month. As the supply continues to dwindle, the increased scarcity of TRX could help push its price higher.

Tron’s network activity has also been on the rise. Last Thursday alone, over 7 million transactions were recorded, up from 5.4 million the previous week. This increase has driven Tron’s cumulative transaction count to more than 9.56 billion, indicating continued adoption and usage of the network.

Technically, Tron has been forming a falling wedge pattern on its weekly chart, with lower lows and lower highs. Historically, a falling wedge pattern often signals a potential breakout to the upside as the price approaches the point of convergence of the trendlines. Additionally, Tron has found support at its 200-day exponential moving average, which it has not broken below this month, suggesting that downward pressure is weakening.

Given these factors, TRX could see a bullish breakout in the coming weeks. If the price breaks out of the falling wedge, a potential target of $0.4485, which represents a 96% increase from the current price, could be in play. However, if the price falls below the 200-week moving average, it would invalidate this bullish outlook, indicating further downside potential.

Tron has shown strong growth in fees, transactions, and staking activity, which positions it as a key player in the crypto space. With a deflationary token model and increasing network adoption, the fundamentals for TRX look promising. Combined with technical indicators pointing to a possible breakout, TRX could experience significant price growth in the near future. However, investors should monitor support levels closely, as any drop below key moving averages could signal a shift in market sentiment.