TRX price remains steady as Tron outperforms Ethereum on a key metric

The price of Tron (TRX) remained stable on January 2, 2025, despite the continued strong performance of the Tron network, which has been outperforming Ethereum (ETH) in key metrics. At the time of writing, TRX was trading at $0.2691, which is slightly higher than its December low of $0.2237, reflecting a resilient price movement amid a broader market atmosphere.

Tron, the cryptocurrency founded by Justin Sun, has made significant strides in network activity, especially in terms of revenue generation. According to data from TokenTerminal, Tron has generated more than $54 million in fees this year alone, making it the second most profitable token after Tether (USDT). In contrast, Ethereum, which has historically dominated in terms of fees, has earned just $37 million. This marks a shift in the crypto ecosystem, where Tron has been outperforming Ethereum in generating network revenue, particularly during the last few months.

The surge in Tron’s network fees, a trend that started in late 2024, highlights the growing adoption and utilization of the network. Over the past 180 days, Tron’s fees reached $1.8 billion, a staggering amount compared to Ethereum’s $822 million over the same period. This performance is a clear indication of the increasing demand for Tron’s services and the expanding user base on its network.

Tron’s success can be attributed to several key factors. One of the significant drivers of this success is the launch of SunPump’s meme coin generator, which has contributed to the creation of numerous SunPump tokens. As of now, there are hundreds of these tokens, with a collective market cap exceeding $152 million. Popular tokens like Sundog, Tron Bull, and Tron Bull Coin have gained significant traction within the Tron ecosystem.

Another area where Tron has been thriving is the stablecoin sector. Tron’s network continues to dominate in stablecoin transactions, with TronScan reporting over $108 billion in stablecoin transactions on January 1, 2025, and the number of transfers reaching a massive 2.15 million. The network has seen an increase in the number of Tether (USDT) holders, now surpassing 58.9 million, further solidifying Tron’s position as a leader in the stablecoin market.

On-chain metrics for Tron also remain impressive. The network is one of the most deflationary tokens in the crypto space, having burned over 8.3 million TRX tokens on January 1. This action brings the total circulating supply down to 86.19 billion, compared to 88.3 billion tokens a year ago. This deflationary trend benefits Tron’s stakers, especially when the network is generating higher fees, as they stand to earn more rewards.

The current staking yield for Tron is 4.53%, which is higher than that of Ethereum and Binance Coin (BNB). This makes staking Tron tokens an attractive option for investors, especially given the increasing network activity and the deflationary nature of the asset.

Looking at the price action of TRX, the token has shown positive momentum over the past three weeks. The weekly chart indicates that TRX has been steadily climbing, with investors seeking to buy the dip. The price is currently trading above the key resistance level of $0.1842, which was its previous all-time high, and is also holding above an ascending trendline that has been in place since November 2022. These technical indicators suggest that TRX is in a strong bullish phase, supported by the upward momentum in both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI).

Given these factors, TRX is likely to continue its upward trajectory, with traders and investors eyeing the next psychological resistance level at $0.40. However, it is important to note that the bullish outlook for TRX would be invalidated if the price were to drop below the key support level of $0.1842. This support level has been significant for TRX, and a drop below this point could signal a potential reversal or consolidation in the market.

In summary, Tron’s strong performance in terms of network fees, stablecoin transactions, and staking yield positions it as a key player in the cryptocurrency space, outshining Ethereum in several critical metrics. The stable price of TRX, alongside the network’s growth and adoption, suggests a promising future for the token, with further potential for upward movement in the coming months.