Tron (TRX) price has been in a remarkable bull run since December 2021 when it bottomed at $0.0069. TRX, its token, has risen by over 1,786% since then, bringing its total market cap to over $11 billion. Most recently, Tron has jumped in the past four straight weeks and is now hovering near its highest point since May 2021.
Tron’s growing market share
Tron’s token has done well this year as the crypto fear and greed index continued moving to the greed zone. This trend is in line with the performance of Bitcoin and other digital currencies like Solana, Avalanche, and BNB.
However, there is more to that because Tron’s rally started way before these coins. For example, as most coins plunged after the collapse of FTX, Tron was actually rising as it defied gravity. This trend is mostly because the network’s ecosystem has continued doing well in the past few years.
First, JustLend, the biggest DeFi network in Tron, has moved to become the fifth biggest player in DeFi with over $6.9 billion in assets. Its website places this figure at over $7.3 billion. JustLend is a platform that enables people to deposit tokens and earn a return. Like AAVE, it also lets people borrow money.
There are other features in JustLend such as energy rental, which reduces fees in Tron’s ecosystem. For example, Tron that is deposited or staked in JustLend has an APY of 6.08%, which is higher than what government bonds are paying. The staking reward comes from voting rewards from Tron and the gains from Energy Rental. The volume of Staked TRX stands at over 443 million TRX.
USDD and BitTorrent demand
Other parts of Tron’s ecosystem are doing well. For example, the USDD stablecoin has seen its total market cap jump to more than $739 million. It has also maintained its peg since May 2021 since most analysts were expecting it to depeg because its technology was similar to that of Terra.
Meanwhile, the volume of staked USDT in Tron has continued rising. The total amount staked has risen to over $71 million with the APY standing at 4.39%. This is notable since stUSDT has over $1.2 billion in TVL, making it one of the biggest players in the ecosystem. Other big components of Tron’s ecosystem are JustStables, SUN.io, and UniFi Staking. The BitTorrent ecosystem is also thriving.
Taken together, these factors explain why Tron is doing well as the volume of stablecoins in the ecosystem has jumped to over $50 billion. Most of these stablecoins are Tether, the biggest one in the world. It also explains why the revenues in the ecosystem has jumped to over $154 million this year. This makes it the third-most profitable networks after Bitcoin and Ethereum.
Tron (TRX) price forecast
Turning to the weekly chart, we see that the TRX price has been in a strong bull run recently. This rally has seen it jump to the key resistance at $0.1313, which was the highest swing in November 2021. The token has remained supported by the 50-week and 25-week moving averages.
Additional technical indicators show that there is still a bullish momentum in the market. Therefore, the outlook for Tron is still bullish for bow. This trend will likely see it recover and retest the all-time high of $0.1843, which is about 40% above the current level.
How high can TRX price jump?
As mentioned, the base case is where the price of Tron rises by 40% and then retests its all-time high. This rally will likely be driven by other factors such as the ongoing crypto bull run that could see Bitcoin retest its all-time high.
