TRX Price Midweek Bounce: Here’s What’s Driving Momentum

Key Insights:

• TRX price pulls off 5% rally since midweek, as the broader market struggles with low volumes.
• Tron network celebrates new milestone as stablecoins push above $84 billion.
• Transaction activity on the Tron network signals healthy growth despite prevailing market uncertainty.

TRX price jumped to $0.31 earlier in the day, extending its recovery since mid-week. This bullish momentum occurred just as the rest of the top coins were in the red on the weekly timeframe.

This was not the first time that TRX price managed to detach from the overall market direction. The cryptocurrency rallied by over 5% since Wednesday. Conversely, top coins, such as Bitcoin and Ethereum, struggled to secure bullish momentum.

The pivot to the upside occurred after TRX’s RSI briefly dipped below its 50% level. Deeper investigation revealed that the bullish momentum was likely driven by healthy network activity.

Tron Network Stablecoin Count Soars to a New ATH

The rallying TRX price reflected some interesting developments within the Tron network and may underscore the mid-week demand resurgence. One of those developments was that the stablecoin count on the network just pushed to a new all-time high.

According to DeFiLlama, the Tron network’s stablecoin count soared above $84 billion for the first time this week.

Interestingly, Tron’s stablecoin count reached new historic highs, while its biggest rival, Ethereum, saw a different outcome. Although Ethereum’s stablecoin market cap was almost double that of Tron, it dipped from $164 billion to $161 billion since 15 January.

Tron’s most prominent strategy over the last few years was to focus on stablecoins. Thus, it was not surprising that stablecoin growth and demand may be among the key demand drivers for the TRX crypto. The same stablecoin focus has also been one of the reasons why Tron grew into one of the top preferred networks for stablecoin transfers due to cheap and fast transactions.

Interestingly, demand for TRX crypto also reflected the recent surge in address activity on the Tron network. Weekly active addresses on the network exceeded 6 million between 12 and 18 January.

It was the first time that the weekly activity exceeded 6 million addresses. The network has been building up address activity since November. Network activity was already on track to clock over 5 million active addresses this week.

From Strong Transaction Activity to Record Q4 Data and a Major Tron Inc. Move

Address activity begets transaction activity, and transaction data revealed a sizable uptick. For context, transaction count on the Tron network was as low as 9.2 million on 28 December. It peaked as high as 12.2 million by mid-January.

Transactions remained significantly elevated in the last 2 days. The TRX price performance seems to be building on robust network activity. Daily transactions on the network pushed above 10 million in Q4, and address activity was notably higher than in Q3.

While network growth may have contributed heavily to the recent demand for TRX, it was not the only factor driving the price uptick. Tron Inc. has reportedly been stacking up its TRX holdings as part of its strategy to build a reserve of the cryptocurrency.

The company just announced that it has acquired 165,824 TRX, bringing its total treasury holdings to 677 million TRX. Although its latest acquisition was relatively small to have a sizable impact on TRX price, it underscored the rising floor price as the reserve grows.