Memecoin activity on the Tron network is heating up, with many suggesting that a Tron memecoin season is coming. The recent performance of several top meme coins on the chain supports this view, with many having seen upwards of 100% in price increases in the past 24 hours.
On Wednesday, March 19th, blockchain analytics firm Nansen highlighted rising memecoin activity on Tron. Active addresses holding Tron memecoins spiked above 1100, more than a tenfold increase since March 16th. Trading volumes in memecoins on Tron also rose from $200k to $2.4 million, also increasing tenfold.
That same day, several top Tron memecoins experienced substantial price increases. Sundog, the largest memecoin on Tron, was up 11% on Wednesday and 40% in the last seven days. Two Tron Bull tokens, BULL and TBULL, the second and third largest memecoins on the chain, were both up 50% in just one day. Simultaneously, Fofar.meme surged by 124%.
An increase in TRX memecoin activity coincided with a resurgence in total active addresses and transaction counts on Tron. Active addresses increased from 1.8 million in February to 2.6 million in March, and daily transaction counts rose from 5 million to 9 million.
Is a Tron Memecoin Season Coming?
Nevertheless, some traders expressed skepticism towards the analysis. One trader stated that Tron season equals “rug season,” while others criticized Nansen for their take. This sentiment likely arises because memecoins have recently received significant negative attention.
It is important to note that most of Tron’s memecoins are relatively small. While Sundog has a market capitalization of $61 million, the BULL token has a market cap of just $5 million. In total, just five memecoins on the chain have a market cap larger than $1 million.
The relatively small market capitalization and even lower liquidity expose these tokens to high volatility. It also exposes them to potential market manipulation. Notably, traders with relatively little capital can influence their prices significantly. Therefore, traders are advised to exercise caution when considering investments in TRON memecoins.
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