The Tron price has been in a narrow range in the past few weeks as investors wait for a catalyst. The TRX token is trading at $0.1075, which is about 30% above its lowest level in October. This price action brings its total market capitalization to more than $7.66 billion.
Is Tron underrated?
Tron is a blockchain project that was started by Justin Sun, a Chinese millionaire. Sun is best-known for paying millions of dollars to have lunch with Warren Buffett, one of the best-known investors in the world.
He is also known for being the owner of BitTorrent, the popular torrenting software that he bought for $140 million. After the acquisition, he transitioned the network into a blockchain platform whose BTT is now valued at more than $2.6 billion.
In the past few years, Tron has transitioned itself to become the biggest blockchain operating system in the world. The platform enables developers to build decentralized applications. So far, according to DappRadar, there are hundreds of applications built on Tron’s network.
Tron is also becoming a good platform for building Decentralized Finance (DeFi) applications. Today, according to DeFi Llama, there are about 5 DeFi platforms built-in Tron that have a total value locked (TVL) of more than $6 billion.
This makes it the 6th biggest such platform after Ethereum, Binance Smart Chain, Solana, Terra, and Avalanche. The biggest DeFi platforms in Tron are JustLend, JustCryptos, and JustTables. Notably, five of the DeFi platforms in the network have a TVL of more than $1 billion.
Meanwhile, the amount of stablecoins in circulation in Tron has been in a sharp increase recently. For example, the number of Tron transactions in the past 24 hours was more than 2.52 million. At the same time, the amount of Tether in circulation in the ecosystem was more than $11 billion. This is notable since Tether has a market value of about $71 billion.
Despite all these accomplishments, Tron is still relatively unknown. Its price has lagged that of other peers and its social media mentions tends to be relatively limited.
Tron price prediction
The daily chart shows that the Tron price has been in a narrow range in the past few weeks. The price is currently trading at $0.1080, where it has been in the past few weeks. As a result, it is trading at the 25-day and 50-day moving averages.
Meanwhile, the TRX price has formed a triangle pattern. Interestingly, this triangle pattern is nearing its confluence zone. This means that the coin is ripe for a bullish breakout, which could happen in the coming days.
