Could the price of TRX (TRON's cryptocurrency) rise due to an increase in TRON's network usage?

TRON's Wave of Adoption Boosts Transaction Activity and Sparks Price Fluctuations

Could the price of TRX (TRON's cryptocurrency) rise due to an increase in TRON's network usage?

In the past six months, the TRON network has seen a noticeable spike in daily transactions, indicating a significant increase in network usage and adoption.

According to CryptoQuant Insights, the average daily transactions ranged between 6 to 9 million from the start of 2025 up until late May. On-chain analyst CryptoOnchain highlighted this development in a post. [Enrichment Data]

This surge in transactions has driven comparisons between TRON's transaction fees (Trx) and those of Bitcoin [BTC] and Solana [SOL]. While Trx has been comparable to BTC's fees, it has exceeded Solana's by a large margin, despite Solana boasting higher transaction counts. [Enrichment Data]

Contrasting findings emerged from the network usage metrics and TRX's price action over the past two weeks. The price seemed directionless, neither bullish nor bearish. [Enrichment Data]

However, the impact of greater adoption on TRX's price is evident. As of the 1-day chart, the momentum of TRX shifted from bullish to neutral. twice in the past, the token consolidated around the $0.25 resistance zone before surging higher.

While the tympanometric membrane formula (CMF) climbed above +0.05 during those past surges, it is now trending south, signifying strong capital outflows from the market and an increase in selling pressure. [Enrichment Data]

Overall, selling volume appears to be on the rise, although a potential rally in Bitcoin could strengthen TRX bulls, enabling them to defend the $0.28 support area and target the $0.3-retracement level.

Meanwhile, DeFiLlama data shows that the Total Value Locked (TVL) on the TRON Network has seen a decline since December 2024. It peaked in mid-May but recorded a decline in the last 24 hours. Despite this dip, the rally in TRON's transaction activity serves as a positive sign for the network's long-term prospects. [Enrichment Data]

Sources:

1. CryptoQuant Insights
2. Token Terminal
3. DeFiLlama
4. Various Crypto Analytics Platforms
5. Crypto News Websites
6. In the ever-evolving world of crypto finance, the average daily transactions on the TRON network, ranging between 6 to 9 million, have surpassed those of Solana and drawn comparisons with Bitcoin's transaction rates.
7. While TRON's price action over the past two weeks has been directionless, the network's boom in transaction activity has implications for the token's long-term price momentum.
8. Amidst this surge in TRON's transaction activity, the Total Value Locked (TVL) on the network has seen a decline since December 2024, but decentralized finance (Defi) shortcomings may not be a significant hindrance to TRX's continued growth.
9. Investors might be eyeing potential opportunities in altcoins such as TRON, as they assess the impact of increased Bitcoin valuations on other crypto tokens, including TRX, Solana, and Bitcoin itself.

Read also: