Tron's cryptocurrency, TRX, reached $0.42, but potential sellers might push the price down again
Tron (TRX) has been making headlines with its impressive surge since the start of 2025. The Net Unrealized Profit/Loss for TRX remains cautiously optimistic, reflecting the token's resilient performance amidst global market downturns and geopolitical tensions.
Justin Sun's strategic acquisition of SRM Entertainment, now known as TRON Inc. on NASDAQ, significantly boosted market confidence. This move, a testament to TRON's push to merge Web3 innovation with traditional finance, caused the SRM stock price to jump over 40% and TRX price to surge around 5% in one day.
TRON's on-chain performance is robust, with the blockchain generating about $2 million daily in network fees and daily transactions exceeding 9 million. This strong user engagement and growing utility underpin TRX’s resilient price.
Profit-taking by long-term holders, particularly those who entered during the 2020-2021 bull market, has driven realized gains to record highs. Over $1.4 billion in profits were realized in a recent 24-hour period, marking one of the largest profit-taking waves for TRX in months.
High trading volumes and strong community interest have sustained TRX momentum. Daily trading volume was around $920 million, supporting liquidity and market activity.
Justin Sun’s call to lower network gas fees amid rising TRX prices aims to maintain competitiveness and encourage continued adoption, addressing the challenge that higher token prices can lead to increased fees, which might otherwise hamper network use.
Technical indicators and market sentiment remain bullish, with TRX testing major resistance levels and showing potential for further breakout to higher price targets. However, the MACD is reacting to holder activity, with the strength slightly shifting towards bears, suggesting a potential short-term drop due to profit-taking activity.
The implementation of a burn mechanism to create scarcity has been a factor in the gains for TRX. As of the time of writing, Tron had burned about 40B TRX, reducing its supply. In the current month of August, Tron had removed about 166M tokens, a tenth of what was burned in July.
Tron's price has been trading above its 52-week low and was approaching $0.42, following a rise since early February. However, it's worth noting that Bitcoin [BTC] and Ethereum [ETH] had higher realized gains than TRX.
Justin Sun, the founder of Tron, has been instrumental in popularizing the altcoin through collaborations with other chains and meme-related activities. The increased revenue generation for participants using the Tron platform is due to the popularity of memecoins.
Tether's USDT generates approximately $7.57B in annual fees, primarily on Tron and Ethereum. Tron has maintained a strong trend since the start of the year.
In summary, TRX's strong technical fundamentals, strategic corporate moves, sustained user activity, and calculated profit-taking by long-term holders have together driven the token’s surge and record realized gains since early 2025. However, the optimism suggests a short-term shift in behavior of TRX holders, possibly towards profit-taking, which may result in a short-term price correction before resuming its upward trajectory.
- Despite the impressive surge of Tron (TRX), Bitcoin [BTC] and Ethereum [ETH] have recorded higher realized gains.
- Justin Sun's call to lower network gas fees aims to maintain competitiveness, addressing the challenge that higher token prices can lead to increased fees.
- Tether's USDT generates approximately $7.57B in annual fees, primarily on Tron and Ethereum, indicating collective interest in crypto finance.
- The implementation of a burn mechanism to create scarcity has been a factor in the gains for Tron, reducing its supply.
- Similarly, Ethereum [ETH], along with Bitcoin [BTC] and other tokens in the crypto market, has seen profit-taking waves amidst bullish sentiments and technical indicators.
